The market has a lot to digest this week. A hotter-than-expected CPI print just threw a wrench in the inflation narrative, forcing traders to reassess the Fed’s next move. But while the US grapples with sticky data, Europe is fading the noise and hitting fresh All-Time Highs (ATHs), fueled by solid earnings from heavyweights like Heineken. Meanwhile, Asian markets remain choppy as they weigh potential US tariffs against global macro signals. It’s a mixed bag of price action, big corporate moves from Smurfit Westrock and Prudential, and a global economy trying to find its footing.
It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance and forecast are not reliable indicators of future results.
CPI Cools Down, Asian Tech Heats Up
Green screens across Asia this morning as a miss on US Core CPI drives a surge in risk assets. The lower inflation data is forcing traders to re-price the Fed’s timeline, sending Treasury yields down and boosting equity benchmarks in Tokyo, Seoul, and Sydney. The FX desk saw heavy action with the Yen strengthening 0.9%—a significant breakout from recent ranges. Combine the favorable macro data with the ongoing momentum in the AI sector, and the setup looks constructive for the bulls.
*Trading involves significant risk of loss.
SEC vs. Musk: The $150M "Discount" Under Fire
The ghost of the Twitter acquisition is back to haunt Elon Musk. The SEC has filed a lawsuit alleging Musk dragged his feet on disclosing his initial 5% stake in the platform, effectively keeping other shareholders in the dark. By delaying the filing, the SEC claims Musk was able to keep accumulating shares at "artificially low prices," saving himself—and costing sellers—an estimated $150M. It’s a classic case of regulatory lag vs. execution speed, and now the commission wants to hold him accountable for that pre-rebrand arbitrage.
*Trading involves significant risk of loss.
Oil Hits New Highs as Geopolitics and Data Collide
The energy complex is catching a bid this week. WTI and Brent are trading at multi-month highs, fueled by a double-whammy: a massive drop in US inventories and looming supply shocks from new sanctions on Russia. While the IEA warns of "significant" disruptions in offloading Russian crude, the upside is being capped by de-escalation headlines from the Middle East. With an Israel-Hamas ceasefire on the table, traders are carefully weighing real supply constraints against fading war risk.
*Trading involves significant risk of loss.
Tight Policy Keeps the Dollar Elevated
The Dollar is finding plenty of support this week, driven by sticky US rates and renewed geopolitical jitters. With the Fed keeping policy tight, the carry still favors the USD, while trade uncertainty is driving defensive positioning. The real risk here is in the EM space—prolonged dollar strength is starting to squeeze developing markets. Expect choppy price action in the majors as traders navigate this divergence.
*Trading involves significant risk of loss.
