As global central banks raise and lower (as the case with Turkey) interest rates, global currencies are taking a wild ride. While American tourist are enjoying the strong dollar, retirement accounts, institutional portfolios, corporate earnings, and crypto holds are feeling pain caused by the currency movements.
Strong tech companies are feeling pain. Nvidia is down 57% YTD, AMD is down 52% YTD, and Amazon is down 32% YTD, all primarily due to interest rates and the currency markets.
It’s rare times when a premier company like FedEx misses earnings by $2 and announces cost cuts of $3 billion. Nike (NKE) posts earnings on Thursday and given they are a global company like FedEx, currencies will likely negatively impact the current and foreseeable future earnings.
The pound has hit a historic low of 1.0327 after release of last week’s new Conservative government ‘mini-budget’ and the euro has hit a 20-yuear low of 0.9689 against the dollar.
Oil prices continue to weaken as $100/barrel seems far in the rear-view mirror as prices return to Jan 2022 prices. WTI for November hit $78.49/barrel while Brent contracts are trading around $85.50.
There are no corporate earnings of note for Monday.
The economic calendar is light with Chicago Fed @ 8:30am ET and Dallas Fed @ 10:30am ET. Boston Fed President Susan Collins speaks @ 10:00am ET.
Volatility remains high.
No Whale bias as large traders leaned bearish overnight but not with enough volume to be significant.
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