Lack of direction is what investors will be suffering until we see clearer signs of inflation abating. And that will take time, as we must see a couple of encouraging data points to call the central banks’ inflation fight successful.

The lack of clear direction is driving the markets up and down, and big bank analyst have very diverging opinions regarding where the stocks are headed next. One thing is clear, opportunities never disappear and picking the right sectors and right stocks lead to sustainable portfolio returns. Among interesting sectors, traditional and alternative energy stocks stand out. Swissquote proposes two promising alternative energy theme portfolios.

In the FX, the dollar index rebounded, and the stronger greenback sent the EURUSD below the 1.0150 mark. The dollar-CAD is, on the other hand, swinging between the Canadian dollar bulls’ hope of seeing a recovery in oil prices, and the persistently strong US dollar. Canada will reveal its latest inflation data today. A soft-enough read could soften the Bank of Canada (BoC) hawks, but a single month easing in inflation won’t mean that the BoC would weaken its policy stance when inflation remains near multi-decade peak. 

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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