Saxo Market Call What now after the capitulation?
May 13, 2025
The discussion dives into the aftermath of a major market capitulation, sparking debates about the future of the U.S. dollar and its complexities amid shifting economic indicators. Attention shifts to the EU defense industry's declines and the sentiment indicators presented by cryptocurrencies like Bitcoin. Analyzing U.S.-China trade relations sheds light on currency trends, while political policies and their impact on market responses are also unpacked. Insights on gold as an alternative asset add depth to the conversation.
AI Snips
Chapters
Transcript
Episode notes
Markets Reach Capitulation Point
- The recent big rally in US markets likely marks a capitulation of bearish holdouts and resistance levels.
- This moment might represent peak good news on trade, signaling a search for new market catalysts ahead.
US Dollar Structural Downtrend Remains
- Despite recent rallies, the US dollar's long-term structural downtrend remains intact.
- China is pushing alternatives to the dollar, strengthening their currency despite a strong dollar environment.
Currency Correlations Persist
- Major currencies like EUR, JPY remain directionally correlated with the US dollar and renminbi.
- Until this inter-currency correlation breaks, significant drama in dollar-renminbi pairs is unlikely.