Should you prepare for another US dollar rally? | MarketTalk: What’s up today? | Swissquote

Inflation in Japan soared to the highest levels in more than 30 years, to 3.7% in October, up from 3% printed a month earlier. High inflation print sure revived the Bank of Japan (BoJ) hawks, and the calls for a policy rate hike, and kept the dollar-yen below the 140 level, but it’s unsure whether the BoJ will give up on its ultra-soft policy stance. Therefore, if the US dollar picks up momentum, which will certainly be the case, the USDJPY could easily rebound back above its 50-DMA, which stands near 145.

And the reason I think the US dollar will recover is because most Fed members remain relatively hawkish regarding the Fed’s policy tightening. Plus, option traders are building topside structure over the one-month tenor that covers the next US inflation report and the Fed’s next policy meeting in December.

So, the ambiance in the stock markets is not as cheery as it was at the end of last week.

In the UK, the autumn budget statement went happily eventless. Gilts rallied, pound saw limited sell-off, while energy companies’ reaction to windfall taxes remained muted.

Watch the full episode to find out more!

0:00 Intro
0:30 Japan inflation soars, Mr. Kuroda!
1:34 Should you prepare for another USD rally?
3:32 Market mood turns… meh.
4:01 The retail roundup
6:11 The happily eventless UK budget

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

#hawkish #Fed #USD #recovery #US #retail #sales #Walmart #Target #Macys #HomeDepot #Lowes #Alibaba #earnings #UK #Budget #GBP
#SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news
#Swissquote #MarketTalk #marketanalysis #marketcommentary
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  1. We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! I trade and hold profits, FLOYD JOHNSON has been doing a great job reviewing all chart, trade and techniques on BTC which has enhance the growth of my portfolio to 9.5 BTC lately….

  2. Awesome delivery there Ipek! Loved it! I laughed and almost cried too … because we are all so FUBAR! We had a small drop as we do in October always. Now we have Black Friday and thanksgiving so sales will rocket and so too inflation!
    IMHO…The Fed should come out hawkish…75bps again!
    The U.K. is in the gutter… it’s totally done! The energy windfall tax didn’t go far enough because the energy companies are fleecing the British public – just compare Q3 2019 profits to Q3 2022… enough said there!
    Interest rates in U.K… any higher and there is going to be a property meltdown which is going to step into a slippery slope all the way to hell because it’s a rollercoaster. Once you’re on you can’t get off!

    Have a great weekend

  3. It will be interesting to see whether the Fed moves the goal posts and targets a higher interest rate. 2% was bad enough so higher will not be better for the average citizen.

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