Ipek Ozkardeskaya
Swissquote Bank Ltd
Yesterday’s inflation update from the US didn’t go well. January data showed a hotter-than-expected report across monthly and annual readings and all categories including food, energy and housing.
As such, the Federal Reserve (Fed) rate cut expectations melted like snow under the sun after yesterday’s clear uptick in US inflation suggested that the Fed would better wait and see before doing anything else. The US yields rose, risk appetite weakened while the US dollar unexpectedly softened.
Gold, too, gained despite the rising US yields and the historically negative relationship between US yields and gold prices is no longer a thing.
Elsewhere, crude prices plunged on hope of resolution in Ukraine.
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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