No reason for the debasement trade to stop [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Japanese stocks are on a roll thanks to the so-called “Takaichi rally”, as reports that PM Sanae Takaichi might call a snap election boost hopes of stronger fiscal support and tech-focused policies. The Topix is leading the charge, with tech and defense names stealing the spotlight.

Meanwhile, US futures are treading water, caught between political pressure on the Fed, a softening dollar and questions about how far rate cuts could go without stoking inflation. The weaker greenback helps US equities in nominal terms, but non-US investors are starting to feel the currency drag.

Waning appetite in USD and other major currencies support gold and silver in the context of the ‘debasement trade’ and there is no reason that the latter would stop anytime soon!

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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