Ipek Ozkardeskaya
Swissquote Bank Ltd
Investors on Monday were shrugging off the bad news of past week – especially the one that suggested that the Federal Reserve (Fed) would cut its rates only two times in 2025 due to a too resilient US economy. But even though the equity markets looked joyful on Monday, the US 2-year papers remained offered and the US Dollar erased earlier losses to finish the session higher against most majors.
Meagre news and data flow should keep the focus on a more hawkish Fed. The pullbacks in the US Dollar are probably good opportunities to buy the dips against most majors. As per equities, the rally extends but the questions regarding the ballooning valuations of Big Tech stocks become louder, too. Two stellar years of more than 20% gains for the S&P 500 definitely calls for correction. But no one is willing to leave the festive table, just yet.
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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