DIFX Buzz: Here’s a weekly market recap for you to start your Monday with the top news of the week.
Let’s see what happened in markets this week:
❖ The Yen fell after nonfarm payroll data signaled that we may see another rate hike in May.
❖ Continued growth in the US labor market despite high rates coupled with near zero rates in Japan have resulted in the Dollar strengthening against the Yen at the start of the week.
❖ The BoJ governor will step in but is expected to keep the policy unchanged and very dovish.
❖ The Canadian Dollar gained against the Dollar as Crude Oil fell at the start of the week. CAD and Oil have a strong correlation as Canada is one of the largest producers of Oil in the world.
❖ Tesla plans to build a factory in Shanghai to take advantage of the Chinese supply chain to build megapack batteries.
❖ The Virgin Galactic bankruptcy by Richard Branson has cast a shadow of doubt over whether Japan can create a domestic space industry.
❖ Global shipments for PCs fell by 29% in Q1 2023 with Apple taking the largest blow according to research firm IDC.
❖ Binance struggles to find a bank for its US counterpart. Signature and Silvergate banks were previously used but as both have failed, Binance is in dire need of a new bank with not much success.
❖ Doge saw major gains the past week as Elon changed Twitter’s logo to the Doge logo amid the $258 billion lawsuit.
❖ Oil has gained as OPEC+ announced cuts of 1.16 million barrels per day.
❖ Many analysts forecast that China will see growth and demand will come back in full force by the second half of the year which will push prices to $100/barrel.
❖ Gold began to slide after jobs data as traders began taking profits once another rate hike was being priced in for May.
❖ Gold may see a slide but all eyes are on CPI data as this will signal where inflation is and more importantly if the Fed can actually begin to cut rates toward the end of the year.