The strong rebound we saw in US equity futures ended up giving way to a decent sell-off on Wednesday trading session; the S&P500 recorded its worst back-to-back sell-off since October 2020 and it may not be over.

The US equity futures are again in the positive at the time of writing, but the gains are hardly interpreted as a recovery; they are rather the result of a rising volatility. The risk sentiment is sour.

Now one place which could give hope for a slowdown in inflation, and a slower market selloff is oil, as the prices are under the pressure of a couple of factors.

OPEC meets today; the expectations have been as volatile as the market action in oil. The latest news suggests that OPEC is increasingly inclined to scrap its plan to raise output for January.

With the Fed pulling away support, we see the shining stars of the cheap-liquidity market falling from grace. AMC entertainment and GameStop tanked, while chipmakers and electric car makers took a heavy hit.

Traditional safe-haven gold is doing quite poorly nowadays, while Bitcoin is stable near the $56K mark, but the risks are tilted to the downside on the global loss of risk appetite.

So, I am thinking, but just thinking whether the US dollar will again be the place to park until the dust settles. 

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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Majors

Cryptocurrencies

Signatures