Market Thoughts (26-Feb-2023)

Economic Dashboard:
- Central banks globally still in tightening mode to combat inflation which negatively impact risk assets. US employment data still strong and the Fed will need to see some negative jobs numbers to change monetary policy. Europe and United Kingdom have the highest inflation rates so central banks will have their work cut out for them.


Markets Dashboard:
- Markets went risk off which generally entails sell equities/commodities/crypto, and buy US Dollar/ government debt/ gold/ volatility index. We saw this week SP500 and Nasdaq 100 futures come off, US Dollar Index and US 10 Year Government Bonds rally, Volatility index shot higher to around +22 handle, gold weakened with US Dollar strength, Brent crude oil mostly unchanged, Ethereum coming off. Think this risk off sentiment could have some legs with the Fed continuing to tighten monetary policy and take the air out of risk assets.


FX Dashboard:
- With the risk off sentiment, US Dollar got bid so all of the major FX crosses weakened versus the dollar. AUDUSD and USDJPY moving the most out of the 8 major cross that I follow.


Crypto Dashboard:
- Most of the crypto complex came off with the Altcoins taking the brunt of the sell off. Polygon ("MATIC") coming off the most (down around 15%). Polygon has rallied a lot in the past few weeks as its becoming one of the dominant Layer-2 solutions on top of Etheruem.


This Week's Calendar:
- US manufacturing PMIs, EU inflation and unemployment rate,
tradingview.com/economic-calendar/