Ipek Ozkardeskaya
Swissquote Bank Ltd
Early year worries that the AI rally would fizzle out were rapidly wiped out at the start of this week by several news, including Microsoft’s announcement to be willing to spend $80bn on data centers – which pushed the stock up to 1.4% yesterday and Foxconn’s announcement of a 42% surge in its December sales thanks to AI-driven demand.
But mood beyond tech was murkier. The Dow Jones for example was slightly lower on Monday, as US yields spiked.
The US dollar couldn’t benefit from higher yields as Washington Post reported that Trump’s policies wouldn’t be as harsh as promised. But Trump rapidly denied the news and the dollar rebounded. The USDCAD sharply fell on Trudeau’s resignation – and probably on the back of a rally in US crude, the EURUSD – which tanked to 1.0224 in the early hours of the new year - rebounded past the 1.04 level, and Cable successfully threw itself back above the 1.25 mark. The rising energy prices in Europe ease the dovish Fed expectations as inflation in the EZ ticks higher. European nat gas prices rallied 30% since mid-December, as US crude hit $75pb mark.
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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