USD Muted – Busy Central Bank Week | BDSwiss Weekly Market Outlook

-US Treasuries Short-term bonds from the biggest global economy have resumed their upside with 2-year notes, now trading beyond the 4.4% level again. According to Morgan Stanley, bonds might increase in price rather soon as the bank sees data surprising to the downside. Five-year notes might offer the best return as prices have climbed to levels, last traded last year in December. On the other hand, the Bank also warned that investors’ expectations that the Fed will reduce rates early might be too premature. -China Market In comparison to the US, the Chinese equity market is underperforming. In particular, China’s tech sector is trading at valuations way below compared to the United States. The Chinese government has less room to cut rates compared to its global peers. Borrowing costs are currently at multi-year highs and data from the economy is setting a weaker tone. Scepticism towards Chinese assets can not only be seen in the stock market but is likely heavily influenced by the government. -Hedge Fund Industry Leading the list for last year’s returns are TCI and Citadel. The hedge funds led by Chris Hohn and Ken Griffin have returned investors the most, whereas the entire industry produced gains of USD 218 billion after fees. TCI banked nearly USD 13 billion and Citadel returned more than USD 8 billion. The biggest 20 companies, returned about 30% of the gains despite only managing less than 20% of overall funds. -Market Talk The USD is starting slightly weaker into the week, yet without a clear trend direction. The EUR and GBP are gearing up steam against the Greenback, whereas the AUD is muted currently. Oil prices have stabilised and might fluctuate before potentially resuming their uptrend and stock markets continue to rally again. Crypto markets remain sideways and Bitcoin looks set to test the support zone at USD . Ether looks muted at the moment. This week, traders will focus on the interest rate decisions from the Bank of Canada and in particular of the ECB. Christine Lagarde could move markets, depending on her statements in the press conference. It is currently expected that the European Central Bank might start reducing rates as early as summer this year. Check the UPCOMING WEBINARS here: • Download the BDSwiss iOS app: • Download the BDSwiss Android app: • Join our Telegram Channel: • Like us on Facebook: • Follow us on Twitter: • Follow us on LinkedIn: • Follow us on Instagram: • Subscribe to our Channel: Your capital is at risk. T&Cs apply.