📢 Weekly Market Update 15-July-22 📢

🇺🇸 The US Inflation reaches 9.1% in June leading to a surge in vols for and a decrease in risky assets’ price before spot rebounded higher. The print led to bets that the FED would hike by a full point later this month.

🇮🇹 Despite winning a no-confidence vote in the Senate, PM Mario Draghi’s gave his resignation to President Sergio Mattarella due to the boycott of the vote by the 5SM. President Mattarella did not accept the resignation.

🏦 Central Banks across the world are speeding up interest-rate hikes amidst rising concerns of recession. The Central Bank of Canada rose by a full point while both Australia and South Korea hiked rate by 50bps.

💱 EUR/USD briefly tumbled below parity to reach 20Y low. Letting the currency falls further will push the already high inflation even higher leaving the ECB policymakers with difficult choices to make.

📉 Recession fears continued to put pressure on risky assets and crypto as we see BTC around the 20K mark, along with ETH hovering above the 1k mark.

🆘 Celsius Chapter 11 bankruptcy filling confirmed that its liabilities outweigh its assets by $1.2bn.

📈 Bitcoin’s correlation with stocks kept decreasing and is close to its lowest point of the year. As pointed out by Bloomberg, the 40D correlation with the Nasdaq index is below 0.5. The inversion of the volatility surface for BTC is a sign of risk aversion as investors are buying short-term put to hedge against the downside.

📅 Next week calendar includes the BOJ and ECB’s rate decision, inflation data in the EU, UK, Canada and Japan, unemployment data in the UK and PMI in Germany and UK

🖼 Fun fact of the day: Rembrandt was born on July, 15th 1606 !

Weather should be nice for Saturday and Sunday here in Switzerland, so we wish you all a very sunny 🌞 and fun 🎉 week-end !