Asia | Bitcoin & Crypto | Rates
Markets To Watch This Week: Copper, China, and Japanese Yen
By Bilal Hafeez
(1 min read)
We’ve had great feedback on this new report. This shows that there is much demand for standardising performance across diverse markets.
Last week’s market moves are a case in point. Bitcoin surged seven percent, but that’s less than a one standard deviation move for crypto markets. Instead, the largest standardised moves were in copper prices, which had an over three standard deviation jump, the Japanese yen which had a 2.6 standard deviation decline and China 10y bond yields which experienced a two standard deviation rise (Charts 1 -3). Clearly, the market appears to be pricing a China growth resurgence theme.
The weakness in the Japanese yen is also notable as it had also experienced a more than one standard deviation decline the week before (Chart 2). Typically, markets do not experience successive large weekly moves in the same direction. USD/JPY, therefore, remains a key market to watch in the coming week.
Elsewhere, the Nikkei, Australian dollar, pound sterling, Euro Stoxx, Microsoft, DAX and Amazon all saw weekly increases of more than one standard-deviation.
Bilal Hafeez is the CEO and Editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank, and Nomura, where he had various “Global Head” roles and did FX, rates and cross-markets research.