Ipek Ozkardeskaya
Swissquote Bank Ltd
Federal Reserve (Fed) President Jerome Powell said that the Fed may delay its first rate cut due to the lack of progress in cooling inflation following a rapid decline observed by the end of last year. The US yields rose and the dollar gained a further bullish support as the major peers in Europe insisted on the diverging inflation dynamics that would allow them to lower their interest rates regardless of how long the Fed remains on hold.
Elsewhere, the barrel of US crude remains offered on geopolitical news, or the lack thereof, after Iran attacked Israel this weekend but risks remain tilted to the upside, while gold attracts buyers near record despite rising US yields as investors are looking for a safe harbour in the midst of rising geopolitical tensions, hawkish shift from the Fed and uncertainty regarding the upcoming earnings season.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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