Limit Up! 13th March 2025
Ian Reynolds
Investing and Trading | Capital Markets | Macroeconomics| Bitcoin & Decentralised Finance | Helping to Find the Money Flow | Commentator | Speaker
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Overnight
US CPI surprises to the downside and Canada cuts rates again.
CPI lower but 10 year yields went up and the USD lower. Totally agree that they were small moves but this is what Bessent is talking about. FED cutting short end drives long rates up as the market has lost faith in the FED's ability to control inflation, amongst other things. So Bessent needs to drive that 10 year yield through the floor by slashing government spending and reducing deficits. What he's telling us is that this is the only option left
Meanwhile north of the border, Bank of Canada Governor Tiff Macklem announces yet another rate cut but further cuts are not certain.
?He talked about ;
Australis is outraged that Trump is using tariffs on them. But backed out of reciprocal tariffs.
Breaking
Bitcoin
The downward momentum seems to have stopped for now, but it'll still be difficult to go up if equities move lower.
Precious Metals
Gold breaks out of it's bull flag and looks to retest the all time highs. What happened to the Fort Knox audit?
Silver now confirms break up and looks to test the 34.80 high from October which might well coincide with the top of the uptrend channel.
Bonds
Trouble ahead as BoC cuts but 10 year yields spike.
Foreign Exchange
Quiet out of the UK this week but cable continues an amazing run, aided by a weaker USD of course, but a clear break in the (negative) sentiment.
Equities
US stocks were higher on the CPI data but gave back some of the gains at the close.