China’s Massive Savings Reallocation: The Hidden Driver of Gold’s Record Run

Posted on January 29, 2026 by Olumide Adesina

Chinese households are searching for higher-yielding investments, with $7 trillion in time deposits due this year. This shift could energize the country’s financial markets further.

Millions of people have sought the safety of bank deposits due to years of poor stock performance and a prolonged real estate crisis, which left behind a mountain of savings. That capital is increasingly seeking a new home as interest rates are now falling toward 1%.

Investors are contemplating switching to stocks, insurance, or wealth management products, aligning with Beijing’s efforts to promote long-term market growth and boost the overall economy.

According to a December report by Huatai Securities Co., approximately 50 trillion yuan in deposits with maturities longer than a year will mature in 2026, up 10 trillion yuan from the previous year. Zhang Jiqiang led the analyst group. The report states that large state-owned banks hold about 30 trillion yuan, with a larger share maturing in the first half of the year.

Sources familiar with the matter say the trend is already underway, with demand for participating insurance policies at some of the biggest insurers exceptionally high as investors seek steady returns in a low-interest-rate environment. Some are also investing in stocks, driven by a strong recovery that has increased their market value by more than $1 trillion in just the past month.

Since April, Chinese stocks have been climbing, demonstrating resilience during periods of international tariff tensions, as the nation’s AI advancements continue to attract investors. Gains in the technology sector have been particularly notable.

EUR/USD : Euro Climbs to Four-Year Peak, $1.2 Within Range

Posted on September 16, 2025 by Olumide Adesina

The euro pushed closer to its highest level in four years as investors braced for this week’s interest-rate cut by the Federal Reserve, which would solidify its divergent path from the European Central Bank. The common currency gained up to 0.3 percent on Tuesday, reaching $1.1791, its highest level since July 3.

It has the best nine-month performance on record, gaining about 14% in 2025. Options indicate that a break above July’s high of $1.1829 would be the strongest level since September 2021 and could pave the way for a run at the highly anticipated level of $1.20.

Demand is being bolstered by expectations that the ECB won’t lower rates any further as the Fed is perceived to be ready to begin a loosening cycle. The Fed is expected to lower interest rates by a total of 25 basis points in 2025, which is making the euro more appealing.

The demand for options that allow the purchase of the Euro is increasing steadily. This trend is reflected in one-week risk reversals, which serve as a gauge of market sentiment and positioning, particularly since the European Central Bank (ECB) indicated that it will halt further easing.

Supporting this observation is data from the Depository Trust & Clearing Corporation, which shows that more than two-thirds of Euro-dollar options traded on Monday were bullish bets, with significant interest in strike prices above $1.20.

Foreign exchange traders, who prefer to remain anonymous as they are not authorized to speak publicly, noted that hedge funds that previously pursued bullish exposure through complex strategies are now shifting toward simpler bets on Euro gains. This change suggests a growing conviction among these traders regarding the Euro’s potential for appreciation.

ORCL Stock Goes From Revenue Miss to New High: Oracle’s Cloud Pivot Pays Off

Posted on September 10, 2025September 11, 2025 by Skerdian Meta

Despite Oracle’s poor revenue in the most recent quarter, a daring new cloud projection has turned the tide, sending shares to all-time highs above $290 and putting the $300 barrier within reach.
Continue reading “ORCL Stock Goes From Revenue Miss to New High: Oracle’s Cloud Pivot Pays Off” →

British Pound Sterling Tumbles as UK Bond Yields Hit Highest Since 1998

Posted on September 2, 2025September 2, 2025 by Olumide Adesina

The British government is under pressure to win back investor confidence as UK 30-year bond yields reach their highest level since 1998 and the pound falls below $1.34.

The pound fell more than 1 percent, trailing all other major currencies, and 30-year gilt yields jumped 5 basis points to 5¢69 percent. The FTSE 100 Index fell 0.5 percentage points. Ahead of her autumn budget, Chancellor of the Exchequer Rachel Reeves faces a precarious fiscal environment that could be made worse by rising debt costs. The UK has the highest benchmark 10-year yield among the Group of Seven countries.

Historically, gilts have been regarded as a safe-haven investment, attracting steady buyers like pension funds. Since hedge funds and foreign investors have seized UK government bonds, the situation has shifted, making them more vulnerable to market Volatility.

Foreign investors held a third of Gilts in 2023–2024, up from 19 percent in the late 1990s, according to a recent OBR report.

The fiscal watchdog reports that their share of gilt holdings has decreased from about two-thirds to less than one-third, as for the pensions and insurance sector. In addition, although the Bank of England’s share has increased, quantitative tightening caused it to begin declining during the last two years.

Tax increases are viewed as unavoidable, despite being politically challenging and possibly detrimental to inflation and the economy.

The market must view the announcements as credible. Anxiety in bond markets won’t be reduced if Reeves’ final announcement is perceived as kicking the can down the road and tweaking the edges rather than addressing the fundamental problems.

More drastic actions would require a level of skill and agility that hasn’t been present up to this point. If not, the UK may find itself in a similar situation, with investors doubting the government’s plans to address the issue more sustainably and, more importantly, whether they can actually carry them out, even if the plans they develop appear to be sound.

Ludovic Subran, Chief Economist at Allianz, told Bloomberg TV that the increase in gilt yields will force the Bank of England to cease lowering interest rates. He said that even though interest rates haven’t hit their terminal rate, the increase gives the BOE “a big wall” and that it will need to “communicate well the long pause that is about to come.”.

He continued by saying that “forward guidance on the fiscal side will be needed, “with Rachel Reeves assuring markets that the budget black hole can be avoided.

Euro Gain Favor as Dollar Tumbles 11% in 2025 Market Shift

Posted on August 13, 2025 by Olumide Adesina

European traders are adjusting their cryptocurrency strategies amid a sharp decline in the US dollar. The U.S. dollar declined approximately 11% against major currencies in the first half of 2025, representing its most significant mid-year drop since the 1970s.

This weakness has led traders in the euro zone to reconsider how they structure their crypto holdings. Even as cryptocurrency prices stay stable in dollar terms, converting back to euros has reduced returns, prompting many to transact and hold assets in their local currency instead of relying on US dollar settlements.

The shift toward euro-denominated trading is clear on European exchanges, where liquidity in ETH/EUR pairs has more than doubled in the past year.

Meanwhile, trading in USD Tether pairs has been declining. This trend reflects a strategic choice to reduce exposure to volatile exchange rates rather than engage in speculative currency plays. The benefits of this approach are straightforward: by maintaining transactions and holdings in euros, investors can lower potential losses from a depreciating dollar and secure more predictable returns in their local currency.

Additionally, demand for euro-pegged stablecoins is increasing, even though their market share still trails behind that of U.S. dollar-pegged stablecoins

. Coins such as EURC and EURS have experienced double-digit growth in market capitalization this year, with the total euro-stablecoin supply nearing $600 million. For institutional investors and businesses, these euro-backed assets offer a practical on-chain alternative to U.S. dollar exposure. If current trends continue, euro-stablecoin adoption could surpass $1 billion before 2026.

U.S. Dollar Holds Firm amid Tariff Fears and Fed Independence

Posted on July 22, 2025July 25, 2025 by Olumide Adesina

The US Dollar Index (DXY), which compares the greenback’s strength against six major currencies, held steady after dropping more than 0.5 percent on Monday.

Market prudence increased, as concerns about the Federal Reserve’s (Fed) independence and the uncertainty surrounding upcoming tariffs grew. US Commerce Secretary Howard Lutnick told reporters, “That’s a hard deadline so that the new tariff rates will come in on August 1.”.

Nations will begin to pay the tariffs, but nothing will stop them from communicating with us after that date. US Treasury Secretary Scott Bessent stated that the Fed’s “mandate creep” into non-policy areas constitutes a threat to its independence on monetary policy. Bessent called for a thorough examination of those operations by the central bank.

Treasury Secretary Bessent demanded that the Federal Reserve be reevaluated as an organization. Speculation about a potential dismissal has increased in response to President Trump’s renewed criticism of Chair Powell for not lowering interest rates.

US President Donald Trump is expected to fire Fed Chairman Jerome Powell shortly, according to a White House official. In a Truth Social post on Sunday, Trump refuted it, describing it as “typically untruthful.”

Republican Congresswoman Anna Paulina Luna has formally accused Fed Chair Powell of perjury in connection with conversations regarding the Federal Reserve’s long-planned renovations to its Washington headquarters.

Dollar Sinks 3-1/2-year low against Euro on U.S Fed Stability

Posted on June 26, 2025 by Olumide Adesina

The dollar fell to a new 3-1/2-year low against the euro amid concerns about the US Federal Reserve’s future independence, which eroded confidence in the country’s monetary policy.

President Donald Trump considered replacing and announcing Powell’s successor by September or October to weaken Federal Reserve Chair Jerome Powell’s position. He added, “The action would cast doubt on the possible deterioration of Fed independence and possibly damage credibility.”

Trump called Powell “terrible” on Wednesday for not cutting interest rates more aggressively, and the Fed Chair told the Senate that policy needed to remain cautious because the President’s tariff plans posed an inflation risk. A week earlier, the probability of a rate cut at the July Fed meeting was only 12%.

JPMorgan warned that tariffs would increase inflation and slow US economic growth, raising the risk of a recession by 40%. In their report, JPMorgan analysts stated, “We expect higher US tariff rates, and the risk of additional negative shocks is elevated. Our baseline scenario includes the conclusion of a phase of uncertainty because of these developments.”

Markets are pricing 64 basis points of cuts by year-end, up from about 46 basis points last Friday. The euro rose 0.2 percent to hit $1.1687, its highest since October 2021, leading to an overall decline in the dollar.

The targets for the following charts were $1.1692 and $1.1909. On the yen, the dollar decreased 0.2 percent to 144.89, and the dollar index fell to 97.491, its lowest since early 2022. Additionally, Trump’s unpredictable tariff policies resurface as his trade deal deadline of July 9 approaches.

U.S dollar stands firm, Fed leaves interest rates unchanged

Posted on June 19, 2025 by Olumide Adesina

The dollar remained stable as investors considered Federal Reserve Chair Jerome Powell’s cautious stance on inflation; however, sentiment remained weak due to concerns about potential US involvement in a wider Middle East conflict.

The Fed held rates steady in a move that was widely anticipated. While not all policymakers agreed that rate cuts were necessary, they are still expected to lower rates by half a percentage point this year. US President Donald Trump’s tariffs trickle down to consumers, and Powell predicted that inflation in goods prices would increase during the summer.

The dollar index, which compares the greenback’s strength to six other currencies, rose 0.8 percent for the week, reaching 98.957, its highest level since late February. As the Israel-Iran conflict entered its seventh day on Thursday, investors’ attention remained on developments in the Middle East.

Concerns about possible US involvement increased as Trump left everyone wondering if the US would join Israel in bombarding Iranian nuclear sites.

Powell stated at a press conference on Wednesday that “the tariff’s cost must ultimately be paid, and some of it will fall on the end consumer.” He added, “We are aware of that since companies say so.

Powell’s remarks, which drew further criticism from Trump, illustrate the challenges policymakers face in managing uncertainties related to tariffs and geopolitical risks. This creates concerns among investors regarding the future direction of U.S. interest rates.

Traders expect at least two rate cuts this year, although analysts are uncertain about the starting point. The Norges Bank and the Swiss National Bank are set to announce their policies later today.

Investors hide under U.S dollar Umbrella

Posted on April 7, 2025 by Olumide Adesina

Investors flocked to safe havens like the dollar, yen, and Swiss franc as concerns about a global recession increased following President Donald Trump’s sweeping tariffs on trading partners.

Global markets plummeted, with Wall Street stocks trading lower after Asian shares fell, as investors speculated that the rising risk of a severe economic downturn could lead to a cut in U.S. interest rates as early as May.

The dollar slightly recovered against other safe-haven currencies, rising 0.50% against the yen to 147.605 after initially tumbling more than 1.4% earlier in the session. It also reached a six-month low against the Swiss franc.

The euro rose by 70 basis points to $1.1050 earlier in the session but was down 0.39% at $1.091775.

The euro has performed well over the past few days since the tariff news. The greenback’s status seems weakened as the uncertainty surrounding tariffs and their effects on U.S. growth escalates while the dollar is usually regarded as a safe-haven asset.

European Union nations are expected to present a united front against Trump’s tariffs in the coming days, an initial set of targeted countermeasures on up to $28 billion worth of U.S. imports, spanning items from dental floss to diamonds.

Sterling dropped to a one-month low at $1.27465 and was last down 1.05% against the greenback.

The Aussie, often viewed as a proxy for risk appetite, plummeted to a five-year low earlier in the session but recovered slightly to be last, down 0.51% at $0.601.

The New Zealand dollar fell 0.86% to $0.5547 after sliding more than 1% earlier in the session.

Trump’s tariff announcements erased nearly $6 trillion from U.S. stocks this month.. When asked about the consequences, Trump remarked on Sunday that sometimes “medicine” was necessary to remedy situations, adding he was not purposely causing a market selloff.

Over 50 nations have approached the White House to initiate trade talks. China, which has responded with countermeasures, including a 34% levy on all U.S. goods, stated that “the market has spoken.”
Meanwhile, traders have increased bets for more Federal Reserve rate cuts this year, believing policymakers must support growth in the world’s largest economy.

Euro hits Month High after Conservatives win in Germany

Posted on February 24, 2025February 24, 2025 by Olumide Adesina

The euro strengthened on Monday following the expected victory of Germany’s opposition conservatives in their national election. Simultaneously, the greenback continued to weaken due to escalating concerns about the future growth of the U.S. economy.

The conservatives in Germany won the national election, sending the euro to a one-month high and sending stock futures soaring on Monday.

Investors are waiting for more results to determine whether much-needed fiscal reform is likely.

The conservative CDU/CSU bloc received 28.5% of the vote, while the AfD received 20%, according to a forecast released late Sunday by ZDF broadcaster.

Although Friedrich Merz, the leader of the conservative party and the next chancellor of Germany, will probably have to negotiate a complicated and drawn-out coalition, investors were relieved that the election did not bring any unpleasant surprises.

The AfD, which opposes fiscal reform, did not do better than expected, analysts said, supporting the outlook.

Europe’s largest, contracted for a second straight year in 2024. Critics attribute years of underinvestment to the debt brake.

Investors see little room for reform, but as increasing defense spending becomes more urgent in European capitals, expectations for higher spending have increased recently.

The dollar lost 3% from its peak in January as traders concluded that they had little desire to increase their holdings of dollars because Donald Trump’s second term had been characterized by bluster on tariffs.

Also adding to headwinds for the dollar were falling U. S Treasury yields on heightened bets of more Fed cuts this year, amid growing concerns over the outlook for the world’s largest economy.

Data on Friday showed American business activity mildly stalled this month – the latest in a string of surveys to suggest that businesses and consumers were becoming increasingly rattled by the Trump administration’s policies.