The first week of February was even more volatile than January. He dominated the markets the sharp sell-off in precious metals, the capitulation of Bitcoin, the sharp decline in US tech stocks a significant strengthening of the US dollardriven by global demand for liquidity. Most of blue-chip companies has already published its resultsand so investors' attention shifts towards «the real economy.» Key US macro data – incl NFP and inflation – are about to fall. In this context, it is worth paying attention to the following three markets:
EURUSD
The US dollar is gaining attractiveness againas capital moves aggressively into the safe haven of cash. It turns out that reports of his «early end» were premature. Further development will be determined by a set of fundamentals macroeconomic data from the USwhich will show the state of the economy and the Fed's next steps.
Strong labor market numbers and persistently high inflation could bolster the «higher rates for longer» narrativegiving the dollar additional support.
SILVER
After brutal decline at the end of January February so far did not bring significant relief. From all-time highs to last week's bottom silver lost almost 50% of its value. Concerns about a lack of physical supplies have eased significantly – which is evident as on COMEXuso in china, where the price premium has come down to just a few dollars. Although he did show up at the end of the week rebound attemptsilver remains under strong pressure. If another occurs liquidation on Bitcoin or Wall Street, just silver is one of the most vulnerable assets towards a deeper correction.
US500
US stocks faced an intense sell-off in early February, despite the resolution budget crisis in the government. Sentiment was hurt by the collapse of cryptocurrencies and precious metals, but also growing fatigue with tech giants. Investors are beginning to question massive CAPEX of technology firmswhich so far did not translate into sales growth. However The S&P 500 reflects the broader economy a The «real sector» has so far shown relative resilience. In this light, the decisive data will be about retail sales and employment.
?? The results of the companies await us this week:
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