Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
You can access both of our platforms from a single Saxo account.
Facebook – an 800lb crypto gorilla
Michael O’Neill
FX Trader, Loonieviews.net
Summary: No monkeying around. Facebook (FB: Nasdaq) will do to the cryptocurrency universe what Amazon did to retail. This morning, the social media behemoth announced plans for a new digital currency, Libra, and a digital wallet, Calibra.
This morning, the social media behemoth announced plans for a new digital currency, Libra, and a digital wallet, Calibra.
The products are supposed to launch in 2020. The wallet, Calibra, will permit “easy and instant” transfers of the cryptocurrency, Libra. Facebook touts Libra as a “simple global currency and financial infrastructure,” built on a secure, scalable, and reliable blockchain. Libra is backed by a reserve of assets designed to give intrinsic value. Facebook’s market cap of $540.0 billion gives the plans instant credibility and clout. The stock jumped 2.6% at the open but quickly pared those gains.
The news knocked the cryptocurrency universe for a loop this morning, including BTCUSD, which fell 1.3% and ETHUSD which dropped 1.6%. Ripple (XRPUSD) defied the move, rising 1.2% thanks to yesterday’s news that the company is partnering with MoneyGram. (MGI) The partnership will allow Moneygram to leverage XRP in foreign exchange settlements. Investors liked the deal, as MGI jumped 125% today.
Wall Street is in a good mood. President Trump tweeted “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”
Trump’s tweet, expectations for a dovish Federal Open Market Committee meeting tomorrow and falling Treasury yields lifted stocks, led by a 1.82% rise in the Nasdaq.
The US dollar retreated modestly since New York opened. Trump’s tweet underpinned the commodity bloc currencies. USDCAD is underperforming because of weaker than expected manufacturing Shipments data.
The products are supposed to launch in 2020. The wallet, Calibra, will permit “easy and instant” transfers of the cryptocurrency, Libra. Facebook touts Libra as a “simple global currency and financial infrastructure,” built on a secure, scalable, and reliable blockchain. Libra is backed by a reserve of assets designed to give intrinsic value. Facebook’s market cap of $540.0 billion gives the plans instant credibility and clout. The stock jumped 2.6% at the open but quickly pared those gains.
The news knocked the cryptocurrency universe for a loop this morning, including BTCUSD, which fell 1.3% and ETHUSD which dropped 1.6%. Ripple (XRPUSD) defied the move, rising 1.2% thanks to yesterday’s news that the company is partnering with MoneyGram. (MGI) The partnership will allow Moneygram to leverage XRP in foreign exchange settlements. Investors liked the deal, as MGI jumped 125% today.
Wall Street is in a good mood. President Trump tweeted “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”
Trump’s tweet, expectations for a dovish Federal Open Market Committee meeting tomorrow and falling Treasury yields lifted stocks, led by a 1.82% rise in the Nasdaq.
The US dollar retreated modestly since New York opened. Trump’s tweet underpinned the commodity bloc currencies. USDCAD is underperforming because of weaker than expected manufacturing Shipments data.
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...