US traders returned from the Martin Luther King Day holiday to face a rough surprise. EU-US tensions remain elevated, with speeches increasingly referring to a shift toward a New World Disorder. (trademark)
The US Dollar, US equity futures, and bonds sold off again, while the Swiss Franc continued to rise, as it did yesterday.
These flows are defining the current market landscape and are likely to persist as long as President Trump maintains his aggressive rhetoric. By the way, today is the President’s 1st anniversary of his second term.
In a notable divergence from traditional risk-off dynamics, the Japanese Yen continues to see selling pressure as Fiscal pressure builds further after PM Takaichi announced a snap election in February – a hike on Thursday’s Bank of Japan meeting becomes more probable by the second.
Meanwhile, precious metals are surging, with Gold, Silver, and Platinum all reaching new highs – in contrast, crypto faced harsh rejection, sending Bitcoin down 3.50% to trade below $90,000.
Natural Gas also spiked again, rising another 10% in today’s session as EU-US tensions can start closing some supply door for the Eurozone.
President Trump will land in Davos early tomorrow morning. Expect a flurry of headlines from the conference, with his speech scheduled for 8:30 A.M.
