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Nvidia's market cap loss is the worst in history. Forex news for US trading on Jan 27, 2025 US December new home sales 698K vs 675K expected US sells 5-year notes at 4.330% vs 4.336% WI Bloomberg: OPEC+ is likely to stick with its current supply policy at a review meeting Reuters poll: Gold to average $2756 per ounce in 2025 and $2700 per ounce in 2026 DeepSeek says it was suject to a large-scale malicious attack Dallas Fed manufacturing business index +14.1 vs +3.4 prior US December Chicago Fed national activity index +0.15 vs -0.12 prior Markets: Gold down $29 to $2743 US 10-year yields down 10 bps to 4.52% WTI crude oil down $1.47 to $73.19 S&P 500 down 1.5%,  Nasdaq down 3% JPY leads, AUD lags In a record-setting day, Nvidia shares plummeted 18%, marking the largest single-day market cap loss ever. The catalyst was the emergence of a cheaper, more efficient AI model from DeepSeek, which threatens Nvidia's dominance. This shift led to a broader market reevaluation of AI economics, impacting various sectors. The initial market reaction saw a flight to safety, with Treasury yields falling 8-10 bps and the Japanese yen gaining strength. However, as the day progressed, certain sectors, particularly those in the real economy, started to rebound on the prospect of more accessible AI. This shift buoyed risk sentiment, leading to gains in commodity currencies and a positive close for the Dow, which recovered from a significant early decline. The creep in optimism led to a bounce in USD/JPY to 154.66 from the low at 153.72. The rebounds were much smaller in trades like AUD/AUD, which rose to 0.6282 from a low of 0.6276 but it's clear we're in some kind of re-evaluation phase. #affinmoneybrokers

#marketreflection 27.01.25 Treasury yields tumbled, tracking steep declines in equities, as investors sought the safety of government bonds, with tech stocks sinking on the emergence of a Chinese discount artificial intelligence model. He noted, however, that its impact is already starting to fade in the bond market, especially, as the market focuses on Fed commentary on Wednesday. The Treasury yield curve, meanwhile, flattened or reduced its steepness from the previous session. It showed what traders call a "bull flattening" scenario where long-term interest rates are falling faster than shorter-dated ones. The gap between two-year and 10-year Treasury yields was last at 33.1 bps, compared with 35.1 late Friday. A "bull flattener" occurs when there is a flight to-safety bid on Treasuries, which is what is currently happening in the market. Meanwhile, the Treasury Department sold $69 billion in 2-year notes at a high yield of 4.211%. The bid-to-cover ratio was 2.66. Treasury also auctioned $70 billion of 5-year notes at a high yield of 4.330%. The bid-to-cover ratio came in at 2.40. The benchmark 10-year notes gained 23/32, yielding 4.5303%. 30-year bonds advanced 1-7/32 to yield 4.7692%. The Japanese yen and the Swiss franc gained while the U.S. dollar fell against major currencies amid a selloff in technology stocks as markets weighed the implications of a Chinese startup launching a free open-source artificial intelligence model. "U.S. equity markets are selling off hard and foreigners were large record buyers of U.S. stocks in December. That is a contrarian indicator," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. The dollar index fell 0.07% to 107.37. The euro was 0.04% lower at $1.0489. Against the Japanese yen, the dollar fell 0.85% to 154.65 yen. Against the Swiss franc, the dollar lost 0.43% to 0.9018 franc. US Market Focus 28.01.25 4-Week Bill Settlement 8-Week Bill Settlement 4-Month Bill Settlement FOMC Meeting Begins Durable Goods Orders  8:30 AM ET Case-Shiller Home Price Index  9:00 AM ET FHFA House Price Index  9:00 AM ET Consumer Confidence  10:00 AM ET Richmond Fed Manufacturing Index  10:00 AM ET Treasury Buyback Announcement  11:00 AM ET 4-Week Bill Announcement  11:00 AM ET 8-Week Bill Announcement  11:00 AM ET 4-Month Bill Announcement  11:00 AM ET 2-Yr FRN Note Auction  11:30 AM ET 7-Yr Note Auction  1:00 PM ET Money Supply  1:00 PM ET Treasury Buyback Results  2:00 PM ET #affinmoneybrokers

On behalf of the Management and Staff of Affin Moneybrokers, we wish you a Prosperous Chinese New Year filled with good fortune, happiness, and success! May the Year of the Snake bring you abundant opportunities, wealth, and good health. Thank you for your continued trust and support. We look forward to achieving greater heights together in the coming year! Gong Xi Fa Cai! 🧧🎉 #affinmoneybrokers

Ringgit to trade cautiously ahead of FOMC this week. #affinmoneybrokers

Asian Currencies Face Pressure as US Tariff Angst Resurfaces. (27.01.25) US equity futures are sliding early Monday as investors react to President Trump ordering tariffs and sanctions on Colombia. It’s a wake-up call across assets after last week was a largely risk positive for global equities. USD/MXN and USD/CAD are also higher in early business. Should S&P 500 futures maintain the opening gap lower through the Asian session it will set up a rough start for European cash markets later today. Treasury contracts are modestly higher with the dollar firmer versus EUR and AUD. President Donald Trump imposed tariffs and sanctions on Colombia after its president refused to allow two military planes carrying deported migrants to land. The move serves a stark reminder of risks around Trump trade policies, which may revive concerns of threats on China which has so far been left unscathed. That puts the yuan in a vulnerable position, dragging the rest of the region with it. With the Lunar New Year holiday set to commence on Tuesday, proxies like the Australian dollar face heightened sensitivity to headline risks. #affinmoneybrokers

#marketreflection 24.01.25 Treasury yields fell, weighed down by weaker-than-expected data in the world's largest economy on consumer sentiment and business activity, that backed expectations the Federal Reserve will cut interest rates at least once this year. "I am not reading too much into today's movement in Treasuries," said JoAnne Bianco, partner and senior investment strategist at BondBloxx Investment Management in Chicago. "We're off the recent peaks on the long end since the CPI (consumer price index) news and this is not a big week for economic data." Benchmark 10-year notes rose 5/32 to yield 4.6174%. 30-year bonds were up 12/32, yielding 4.8443%. The two-year notes edged up 1/32 with a yield of 4.2655%. The dollar fell on expectations that tariffs enacted by U.S. President Donald Trump will be lower than previously feared and unlikely to spur an international trade war. The prospect of high tariffs on goods from countries including China, Canada, Mexico and the euro zone has raised concerns about a renewed bout of inflation, which has helped to send Treasury yields and the U.S. dollar higher in recent months. “People are less and less convinced that the tariffs are coming,” said Adam Button, chief currency analyst at ForexLive in Toronto. The dollar index was last down 0.54% at 107.47. The euro rose 0.78% to $1.0496. Sterling advanced 1.08% to $1.2486. In cryptocurrencies, bitcoin gained 2.12% to $105,310.17. US Market Focus 27.01.25 Chicago Fed National Activity Index  9:30 PM New Home Sales  11:00 PM Dallas Fed Manufacturing Survey  11:30 PM #affinmoneybrokers

The dollar has lost its Trump card. But did the greenback ever really held it in the first place? Trump looks to have gone soft on tariffs and that's weighing on the dollar as we look to the final stages this week. It has been a week filled with headlines from the man but the latest ones definitely stand out. He said that he would rather not use tariffs against China and instead look to it as something to keep China in check. At most for the time being, we might get 10% tariffs on Chinese imports. However, that's a far cry from the supposed 60% tariffs he was touting during his campaign. If he's gone soft on China, is he going to not take such a hard stance against other countries as well? Perhaps. In any case, the tailwind that the dollar had since December has officially switched sides. The greenback felt like it had the Trump card, literally speaking, in the game coming into the turn of the year. But did it really? If you recall, Trump's take on the dollar this time around is the complete opposite of his first term in charge. He wants a weaker dollar, or so he said last year. As mentioned in the linked post, the only realistic option for that is to pressure the Fed into cutting rates quicker. And that looks to be precisely what we're seeing from the man now. In case you missed it, he now proclaims to "know interest rates better than the Fed" and wants rates to be cut "immediately". Still, it doesn't mean the Fed will budge from their current policy stance. Their mandate outweighs any political influence but Trump could very well help to smooth things along if all he does is just talk the talk on tariffs but doesn't walk the walk. That will help with regards to inflation fears but we might have to wait a few more months to be more assured of that. And Fed policymakers would surely prefer that as well. After all, you never know when Trump might suddenly change his mind in all of this. But for the time being at least, it looks like the dollar just got Trump-ed to start the new year. With tariff fears abating, the emphasis will switch back towards inflation and labour market data to see how things progress from here. //

Bank of Japan hikes rates - as widely expected. BoJ benchmark rate +25 bp to 0.5%, the highest since 2008 and the biggest rate hike since February 2007. The BoJ hiked today mainly due to two factors, that it had outlined previously and very publicly: * signs of ongoing wage rises * no market turbulence in the wake of Trump's inauguration and EO signing frenzy BoJ eyes were also on the weak yen, they'd like to avoid further weakness. If the Fed goes on an extended pause that BoJ may not get its wish. more to come.. #affinmoneybrokers

The USD has slumped after Trump said prefer no tariff on China - AUD hits 5 week high. Trump said he would prefer not to use tariffs on China. 24.01.25 The USD has slumped pretty much across the board. AUD/USD has hit a 5 week high. CAD, EUR, AUD, NZD ... all higher. USD/JPY not dropping too much, down about 10 points or so. #affinmoneybrokers

TRUMP Provides Fuel for CHINA and HK Stocks. (24.01.25) TRUMP: WOULD RATHER NOT HAVE TO USE TARIFFS ON CHINA. Sure, his tone may change again, but that is quite the swivel in sentiment. Up until about a week ago, the message had been one of unrelenting trade aggression against China, and it was just a debate of how dramatic and how quickly. This is a far softer tone and, combined with the lack of tariffs delivered so far, will ensure China and HK assets will surge into the weekend, with the rest of Asia benefiting in their wake. #affinmoneybrokers