HomeTrading IdeasNasdaq Hits Record as...

Nasdaq Hits Record as Risk-On Flows Slam US Dollar, Oil

Yesterday was a heavily risk-on session with Equity indices on top of the board, with the notably attaining new all-time highs (currently trading right around the ATH).

All currencies are leading against the , which got sold off aggressively as markets are now moving away suddenly from the conflict that lasted about 12 days – Too much for a market that seems to only go upwards since April.

One particular dynamic of yesterday’s session is the top performers in Forex that are seen as the typical safe-haven currencies – The and the are both finishing the day up around 1% against the USD.

Other Safe-Haven assets like got sold off pretty aggressively, with the precious metal trading more than 3.70% from its war-highs (currently 3,320 vs 3,450 – ATH is at 3,500).

The worst performer in post-war flows is that gave back all of its premium and more: The energy commodity is trading back to the highs of the May monthly range, around $66 after touching $64 lows – As a reminder, Oil was trading from $72 to $75 for the past week – Trump posted on Truth Social that the US may lift the sanctions imposed on Iranian exports to China.

Daily Cross-Asset Performance

Source: TradingView

A Picture of Yesterday’s Performance for Major CurrenciesPerformance of Major Currencies

Source: OANDA Labs

The has lagged particularly against other majors except for the relatively weaker US Dollar, as Canadian came at 0.6% month-over-month, a huge increase to the monthly inflation data.

Another aspect is the underperformance of Oil, one of the biggest exports for the Canadian Economy, which tends to correlate with CAD Performance.

The two top performers of yesterday had been lagging against the Greenback in the past few sessions and sparked more than a V-Shape reversal – the CHF and particularly the JPY recovered most of what they had lost against the USD.

A Look at Economic Data Economic Calendar

Today will once again be mostly focused on Central Bank speeches, with Powell’s second part of his US Congress Semi-Annual Testimony and Bank of England speakers with Lombardelli and Pill at the CCBS ’Transforming monetary policy’ conference in London, UK.

Also, do not forget tonight’s Australian data expected at 2.3% y/y. The inflation data releases tonight at 21:30 ET and will be key to the pricing of more or less cuts for the RBA, which has the potential to influence the V-Shape recovery in .

Safe Trades!

Original Post

Most Popular

More from Author

Top 3 Markets for Prop Traders: EUR/USD, Gold, and Nasdaq Explained

Thinking about prop trading but not sure where to kick things...

The Energy Report: So Much for Weak Demand

shook off the production increase as the physical market...

Novartis Gets Swiss Approval For First Malaria Drug For Babies – Novartis (NYSE:NVS)

Swissmedic, the Swiss Agency for Therapeutic Products, approved Novartis AG’s NVS...

Read Now

Why Is Microcap Rallybio Stock Trading Higher On Tuesday? – Rallybio (NASDAQ:RLYB), Recursion Pharmaceuticals (NASDAQ:RXRX)

Rallybio Corporation RLYB agreed on Tuesday to sell its interest in REV102, an ENPP1 inhibitor in preclinical development for hypophosphatasia (HPP), to joint venture partner Recursion Pharmaceuticals Inc. RXRX.The deal consideration of up to $25 million includes an upfront equity payment of $7.5 million and near-term milestones.With...

Top 3 Markets for Prop Traders: EUR/USD, Gold, and Nasdaq Explained

Thinking about prop trading but not sure where to kick things off? You’ve come to the right place. Prop firms want traders who can deliver steady profits and survive the occasional drawdown and the first step is picking the right market. Out of the dozens of instruments...

The Energy Report: So Much for Weak Demand

shook off the production increase as the physical market seems to be demanding more barrels. As we said before, OPEC’s production increase wasn’t about maintaining market share, as evidenced by the fact that Saudi Arabia raised the prices for their oil, but really because the...

Novartis Gets Swiss Approval For First Malaria Drug For Babies – Novartis (NYSE:NVS)

Swissmedic, the Swiss Agency for Therapeutic Products, approved Novartis AG’s NVS Coartem (artemether-lumefantrine) Baby on Tuesday. This marks the first malaria medicine specifically approved for newborns and young infants.The new treatment, also known as Riamet Baby in some countries, was developed in collaboration with Medicines for Malaria...

Asian Markets Defy Tariff Woes While European Indices Gain on Trade Hopes

Despite US President Trump issuing 14 new tariff letters on Monday, 7 July, Asian stock markets defied expectations. Unlike the sharp sell-off following the 1 April “Liberation Day” tariff announcement, regional indices rallied, many reaching three- to five-day highs in today’s Asian mid-session.Most Asian Stock Markets Rally...

DAX 40 Remains Steady as Markets Speculate EU’s Status in Ongoing US Tariff Talk

muted with trade developments in focus. rises on weakness.DAX Muted With Trade Developments in FocusThe EU was absent from Trump’s latest list of tariffs German exports fell amid weak US demand DAX has extended its recovery above 24k The DAX is trading little changed above 24,000 on...

US Dollar May Weaken Due to Tariffs, Debt, and Economic Data

Although last week’s US (Non-Farm Payrolls) data beat expectations and gave a slight boost, the rise was not strong enough to change its overall trend. This week, USD may come under pressure due to risks related to tariffs, national debt, and Unemployment Claims.USD - Likely...

Oil Market Shrugs Off OPEC+ Output Increase Amid Strong Demand

Last week, I covered solar energy.   I still say that all energy hands will be needed on deck to support the demands of AI, not to mention the power grid in the US and globally.  BlackRock (NYSE:) put out their predictions for the second half of 2025.  2 predictions stood...

Oil Market Shrugs Off OPEC+ Supply Increase

managed to settle higher yesterday despite the announced supply increase from OPEC+ Energy – Oil Rallies Despite OPEC+ Supply Increase While prices initially slid yesterday following a larger-than-expected OPEC+ supply hike, the market managed to turn positive with settling almost 1.9% higher on the day. The increase...

May Retail Sales Decline Confirms Eurozone’s Struggles in Q2

The -0.7% month-on-month decline in coincided with a -0.3% decline in overall services activity in April. While surveys had previously indicated potential weakness in eurozone services for the second quarter, this concrete data confirms our expectations that growth between April and June may have been...

Can Trump’s ‘Run It Hot’ Plan Trap the Fed and Jolt the Bond Market?

Trump wants to run the economy hot to out of debt. So, what are the implications for markets? The Trump administration’s plan for the next 12 months could look like the following: 1) More tariffs: threaten big tariffs by Aug 1st, and ‘’close deals’’ with higher tariff rates before...

Midyear Market Check: Bulls in Control, but Valuations and Sentiment Flash Caution

Don’t look now fans, but the first half of 2025 is in the books. As we embark on the second half of the year, I thought it would be a good idea to review the key areas of analysis for the stock market.Such a review includes my...