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Swiss franc extends drop

TAKEAWAYS


•    Dow Jones hits record high above 32,000 
•    EUR/CHF touches 1.105 and close to October 2019 peak 
•    Swiss franc is slumping in switch away from havens 
•    RBNZ Governor Orr: monetary stimulus is necessary until global conditions improve
•    Fed’s Powell “one time price rises don’t necessarily spur inflation”
•    US 10-year Treasury hits 1.40% for first time in a year
•    Bond yields up on the day but off highs after Powell comments
•    Gold nudges lower toward $1800 but silver rises to just shy of $28 per oz
•    GameStop stock soars 90% in late US trading on news of CFO departure
•    Bitcoin price rebounds but holds under key $50k level
•    Oil prices pops 2.5% as traders buy the dip despite rumours of OPEC+ production rise
•    DAY AHEAD: Durables goods, US Q4 GDP

 

GURU WISDOM


"Don't be distracted by criticism. Remember--the only taste of success some people get is to take a bite out of you." -Zig Ziglar


MARKETS


*Daily closing price
↗ EUR/USD    1.2168        (+0.16%)
↗ GBP/USD    1.4143        (+0.23%)
↗ USD/JPY    105.85        (+0.58%)
↗ S&P 500    3925.43    (+1.14%)
↗ Dow Jones    31,961.86    (+1.35%)
↘ Gold        1803.89    (-0.06%)
↗ Oil (Brent)    66.40        (+1.58%)
↘ Bitcoin    48,433        (-0.93%)

 


NEWS


The Dow Jones overcame the fragility in markets caused by rising bond yields to hit a new record high – touching 32,000 for the first time intraday. Cyclical stocks continue to gain, although the sell-off in tech stocks has steadied. Amid the better mood in markets, shares of GameStop soared 90% on news its CFO would depart.

The Swiss franc added to big losses over the past week with EUR/CHF back over 1.105 and just below levels last seen in July and October of 2019. The Swiss franc gained on haven flows in 2020 but has lost out in the ‘reflation trades’ of 2021. 

The price of oil jumped to a 13-month high after a small pullback on news of a draw in US inventories. Crude oil production was seriously impaired by the freeze in Texas that slowed output by the most on record.

 


DAY AHEAD 


*Times in GMT
13:30 – US Durable Goods Orders(Jan) [1.1 % Exp vs. 0.5 % Prev]
13:30 – US Initial Jobless Claims(Feb 19) {838 K Exp vs. 861 K Prev]
13:30 – US Gross Domestic Product Annualized(Q4) Prel [4.1 % Exp vs. 4 % Prev]