Global Highlights

US dollar – The Dollar Index rose 0.26% to 95.643, as the market now is altering its view on the Federal Reserve’s monetary policy tightening. Consensus view that the inflation numbers could be higher than expected, and the Fed could be responding by aggressively increasing the interest rates.

US Equities – The US stock market reported some gain today, where the Dow Jones recorded an increase of 1.06% to 35,463, the S&P500 increased by 0.84% to 4,525, and the Nasdaq increased by 1.28% to 14,194. The UST10-year yield climbed by 4.7bps to settle at 1.963%.

Euro - The Euro down by 0.24 % to 1.142 as noises surrounding Ukraine and Russia continue. Also, the European Central Bank (ECB) President Christine Lagarde played down expectations of aggressive rate hike this year by saying that any changes will be gradual. The statement came after a hawkish shift during ECB’s recent meeting which spooked the global bond market.

British pound - The British Pound rose by 0.05% to 1.354. Prime Minister Boris Johnson also resonates a similar narrative and is ready to push back Russian regarding the Ukraine crisis.

Japanese yen - The Japanese Yen depreciated by 0.39% to 115.55, as economic sentiment was clouded by the surge of cases related to COVID-19.

Chinese yuan – The Chinese Yuan marginally eased by 0.07% to 6.367, as the market is waiting for the inflation numbers to be published in the US.

Korean won – The South Korean strengthened by 0.21% to 1197.96, a similar narrative for most currencies in the region as the market is waiting to the inflation numbers,

Australian dollar – The Australian Dollar appreciated by 0.28% to 0.715. Traders are also bracing for the US inflation data that could alter the market’s expectation on how far the Fed would be pushing up the interest rates.

Source: AmInvest Research - 9 Feb 2022