Morning Wrap (14.01.2025)

• Tuesday's Asian session brings an improvement in sentiment, following the wave of fear that took hold of yesterday's stock market trading. The CHN.cash index is gaining 2.5% today. Despite the lack of detailed information from China, it is the technical situation on Wall Street that is supporting Asian trading today.

• The US100 index managed to close trading yesterday above the 100-day exponential moving average, which is an important support point for the overall medium-term uptrend. The situation is similar for the US500 and US2000 indices, where the demand side managed to defend the 100-day EMA and 200-day EMA, respectively.

• The US dollar slowed the pace of its rallies after news broke that advisors on Trump's incoming economic team are considering phasing in tariffs, increasing them gradually each month. The news focused on a plan to raise tariffs by 2% to 5% per month. The slower imposition of tariffs is intended to strengthen Trump's negotiating position while minimizing the risk of a sudden rise in inflation.

• In the FX market, the Japanese yen is currently performing worst. The currency lost ground despite the BoJ's Himino saying that the Bank of Japan will debate an interest rate hike at its January 23/24 meeting, taking into account new quarterly growth and inflation forecasts.

• The economic calendar for today's session focuses on PPI data from the US. Scheduled speeches by Williams and Schmid from the Fed may also catch investors' attention.

• Bitcoin is regaining ground today and is back above $94500, after losing as much as 5% yesterday and going below $90000.

• In the commodities market, we are currently seeing close to 2% declines in NATGAS, 0.4% declines in WTI crude oil prices, and close to 0.2% gains in gold prices.

Forex market volatility observed at the moment. Source: xStation