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Writer's pictureStéphan

JPN's wage demand, 31y highs / GOLD, not the only metal on the up / Biden speech / ECB & FED - getting clearer as to who will be first to cut / Happy IWD !



  • Lagarde seems to say they didn't talk rate cuts, bet you they did ! June cut coming. This morning ECB's Rehn already saying ''risks of premature rate cut have substantially decreased - will review natter of rate cuts in April and June' ! >>> having said this, Mr Market is already there! with 95bps of cuts priced in for 2024

  • Powell , FED will be patient and cut soon, summer time, data dependent, "not far" from where it needs to be for the central bank to start cutting interest rates

  • A rather surprising fact from the Fed's flow of funds/Thread >>> no term premium to speak of , yet anyway, 2s10s curve -41 is quite the opposite, pushing risk assets higher, as Reals headed lower

  • BIG positive from UK budget, is the focus on GDP per head ! that is the only thing that really matters to anyone - other countries shoudl follow and focus minds!

  • Japan's unions demand biggest pay raises in 31 years. Higher wages could prompt the BOJ to starting hiking interest rates >>> a surprise from BoJ in March should not be a surprise anymore - seems their quiet interventions near 150-151 working well..

  • 0dte volume was near a record high yesterday, accounting for over 54% of the total transactions for SPX options, seems every at it !

  • GOLD focus clearly, XAG, XPT will eventually break-up and catchup, Copper, Zinc 5week highs too, techs looking interesting

  • Markets : Global markets love a bit of 'interest rate cuts are not far', but all but priced in already.. Under surface stealth moves: equal weight and small caps have outperformed S&P 500 over past month. Semis, NVDA powering ahead still (momentum trades are fun, but prepare(know your exit strategy, just in case)

 








Contrary to previous run-ups last few years on some sort of event-risk, this time Central Banks, China been accumulating XAU for over a year...








COPPER


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