Stock Check:
The US Dollar has been the major out-performer of the day, driven by a significant selloff in US equities. All major US stock market indices have closed in the red, with technology stocks leading the dive during the overnight Asian session. Household stock names including Apple suffered immense losses during the premarket session, opening more than 4.5% below Monday’s closing price. Apple, like many US stocks, now trades at more than a 20% discount versus its highs last month, perpetuating underlying fears surrounding earnings growth and trade tensions. The selloff in the tech sector and across equity markets in general has driven investors to liquidate their holdings in company stocks and shares, instead holding their assets in the underlying US Dollar. The flight into cash and safer US Treasuries has generated a demand for the US Dollar that has allowed it to appreciate some one quarter of one percent on a trade weighted basis since market open. Defensive demand for the world’s major reserve currency in the face of an intensification of President Trump’s trade war has helped determine the demand for US cash, driving cable towards 1.28 and breaking key support of 1.14 against the Euro. On the European front, Brexit demands and concessions continue to create obstacles to May’s Brexit deal that was announced last week. Chief EU negotiator Michel Barmier has warned member states that their idiosyncratic demands and concerns should be constrained as fear surrounding the stability of May’s working majority and domestic popularity grow. Sterling has managed to largely hold onto its value throughout the day, however, markets want news, and fast.
Today’s Global Market:
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Weren’t Tariffs USD Negative?
Charles Porter
Tue 8 Jul 2025
Weren’t Tariffs USD Negative? The Dollar proved sensitive to headlines regarding trade during the US overnight session. However, contrary to what many commentaries would have you believe, as the risk of tariffs escalated the Dollar rose. The 90-day pause following Trump’s April ‘liberation day’ tariffs had been set to expire this coming Wednesday. To the […]
Daily Brief – Dollar Reserves
Charles Porter
Thu 10 Jul 2025
Dollar Reserves With the passing of Trump’s original deadline for the reimposition of liberation day tariffs yesterday, markets have breathed a sigh of relief. July VIX futures continued to slide lower. Moreover, what may surprise anyone who had been expecting the issue of tariffs to resurface following the passing of Trump’s new deadline, so too […]
Daily Brief – Big Girls Don’t Cry
Charles Porter
Thu 3 Jul 2025
Big Girls Don’t Cry A bond market tantrum and one of the sharpest one day sell offs in Sterling for several years appear to have been catalysed by the Chancellor’s appearance in PMQs yesterday. First: the back story. This Labour government has faced some embarrassment in recent weeks trying to get its welfare bill through […]
