Limit Up!

Limit Up! 21st January 2025

Written by Ian Reynolds | Jan 21, 2025 4:28:12 AM

Overnight

Germany PPI December 2024

Breaking

TRUMP updates from NY Times [NY Times]

BBC Live

Markets are bouncing around in reaction to the latest executive order.

Trump threatens 25% tariffs on Mexico and Canada on Feb. 1, punting Day 1 pledge [CNN]

So far we haven't seen anything regarding Bitcoin and crypto and also he said in the CNN article that the US wasn't ready for tariffs with China.

Comment

Financial markets help governments distribute their debt in a manner than should not disrupt sentiment and such that both counterparties have a good result.

Since the GFC, and more particularly COVID, governments have had a flagrant disregard for the process and compliance of capital markets. It wasn't too long ago that money was only created by commercial banks (interest on loans) and because banks don't lend to those unlikely to pay the loans back, there was a natural handbrake on monetary inflation (CPI as some measure that).

Now Presidents and their wives can create money of thin air. It's not only a kick in the face of working Americans but also the seed of distrust in the primary and secondary capital markets system.

History is littered with the corpses of countries that have disrespected markets, and I think this may be the mother of all mistakes.

Crypto

Bitcoin bouncing around

Bitcoin / USD 15 Mins

Foreign Exchange

USD Futures have broken lower.

DXY Daily

Canadian Dollar is volatile.

USD / CAD Daily

Equities

US equiites not back from the MLK holidays

US Equity Futures

Bonds

UST10 yield looking to drop the the lower bound of the channel.

US 10 Year Government Bond Yield Daily

Precious Metals

Gold looking good

Gold Daily

Economic Indicators Today