Ipek Ozkardeskaya
Swissquote Bank Ltd
European stocks renewed record on Wednesday, the US dollar consolidated gains and the S&P500 stocks got a late-session boost. Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.
Moving forward, extension of stock rally and USD appreciation seem unlikely. One must give. The EURUSD holds ground near the 1.08 level – because the European Central Bank (ECB) looks determined to continue fighting inflation. But a robust GDP and a hot inflation report could break the back of the EURUSD bulls.
In Japan, the sumo fight between the Japanese officials and the yen bears remains intense as the yen bears are testing the Japanese nerves near the 152 level. But a hint of further policy tightening is certainly more effective than costly and barely effective FX threats/intervention.
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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