Bonds are currently 0 higher at 155’24

Marc Nemenoff PRICE Futures Group

Financials: Sept. Bonds are currently 0 higher at 155’24, 10 Yr. Notes 7.5 higher at 128’03 and 5 Yr. Notes 5.75 higher at 118’09.5. Yesterday the FOMC announced no rate change as expected. However, the language in the notes leads one to believe a rate cut is imminent. Also of note: Mario Draghi of the ECB indicated that the ECB is willing to do whatever it takes in terms of stimulus (rate cuts that will take their 10 Yr. Note into further negative territory) to create some inflation and counter an ever present economic slowdown. As mentioned last week I believe these factors to be recessionary but must face the bald truth that these markets appear to be headed higher. I am covering shorts in the 5 Yr. for the moment but keeping the long Dec.19/short Dec. 20 Eurodollar spread.

Grains: July Corn is currently 0’6 lower at 440’2, Beans 0’2 lower at 903’6 and Wheat 4’0 lower at 518’2. I remain long Dec/short July Corn believing that new crop Corn will be victim to less acreage and declining yield and that old crop Corn has an ample supply in storage to meet immediate needs.

Cattle: Live and Feeder Cattle edged lower for the week due to ample supplies and higher priced feed grains. I remain short the Aug. 102 put. Longer term I will be looking to be a buyer in OCT. or Dec. LC on breaks.

Silver: Silver is 42 cents higher at 15.39. A decline in the Dollar due to potential rate cuts have lit a fire under this market. Raise protective sell stops to 14.67. WE remain long.

S&P's: Sept. S&P’s are currently 28.50 higher at 2962, mostly due to the prospect of a rate cut in July. We are near all time highs. I amon the sidelines.

Currencies: I am on the sidelines, regretfully having missed the break in the Dollar.

Author

Marc Nemenoff

PRICE Futures Group

Mr. Nemenoff is a 37-year veteran of the futures industry.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.