As a trader, it’s a general rule of thumb that we should always be looking to maximise potential returns (per unit of risk) with each transaction. We should always be looking to squeeze as much out of the market as we can.
There are times when this can occur by simply letting the trade run its course. However, sometimes market conditions align perfectly for savvy...
The Nonfarm Payroll (aka, NFP report) is making a habit of missing its forecast by wide margins. September’s NFP rolled on Friday, revealing that a meagre 194K jobs had been added to the US economy last month. Perhaps the NFP report wouldn’t have been as disappointing had forecasts not predicted September added 500K jobs for the month.
Job growth held to...
It is hard to find a positive word about Facebook (NASDAQ FB), possibly for a good reason.
As the dominant social media platform, it has experienced its fair share of controversy and accusations of impropriety since its inception in 2004. Controversies that readily come to mind include misusing user data and helping bad-faith actors interfere with US elections....
Traders that have taken a long position on Natural Gas will have been feeling lighter than air for the better part of 2021. Remarkably, the trading price of Natural Gas has rocketed up 115% since the beginning of the year, outperforming price increases in other commodities currently sitting close to record highs, Oats (up by 63.83% YTD), Copper (up by 19.65% YTD),...
The Tadawul All Share Index (TASI), which tracks the performance of all stock listed on The Tadawul, has recorded a 30.34% increase since the beginning of 2021.
However, the TASI is sitting at a peak level, which appears to be a repetition of the previous boom and bust cycle. The TASI was in a comparable position in late 2014 and late 2007, before wiping out more...
The New Zealand dollar against the U.S. dollar is facing a critical fundamental event tomorrow: RBNZ's Interest Rate decision. New Zealand has been fortunate that the government's decision to go "hard and fast" has meant citizens have had relative freedom through Christmas and New Years'.
The NZD/USD is currently sitting at around 0.732, up around 1.37% over the...
The New Zealand dollar against the U.S. dollar is facing a critical fundamental event tomorrow: RBNZ’s Interest Rate decision. New Zealand has been fortunate that the government’s decision to go “hard and fast” has meant citizens have had relative freedom through Christmas and New Years’.
NZD/USD eying out RBNZ meeting
The NZD/USD is currently sitting at around...
Week ahead
· CNY PBoC Interest Rate Decision
· NZD Retail Sales Q4 & RBNZ Interest Rate Decision
· GBP Unemployment Rate 3m
· USD GDP Q4
We have a relatively fair number of economic events this week ahead. However, they are relatively significant in their effect on the financial markets and further fundamental guidance.
We've seen risk-on in...
We have seen a clear downtrend in the USD/JPY since the U.S peaked in early April. The Coronavirus saw a rush to the cash, specifically the Greenback.
However, with the financial markets roaring back to life since then, the love for the Greenback has faded. Furthermore, many Japanese investors bringing back their capital out of U.S stocks back into their home...
NZD/AUD is approaching a robust congested area at around 0.925. A downwards channel sees a possible move further lower may see the pair come a level below 0.9. However, an action lower will be dictated on which economy puts the brakes on monetary stimulus first.
Monetary policy dictated by the state of the economy
During the peak of the Coronavirus, the best...
Markets are Frothy
Here's an interesting juxtaposition. There are currently just over 25 Million Currently Infected Patients of Covid-19, with 2.4 million deaths*. However,
· Tesla is up nearly 2,000% since the start of 2019. A luxury electric car company whose slim profit can be primarily contributed to government credits is worth more than Facebook.
· WTI,...
This week ahead, we have a plethora of data coming out across the world dictating the strength of “main street” and its contribution to the Coronavirus Pandemic’s global recovery.
With that said, the Coronavirus continues to present itself as a factor pulling back the global economy’s growth. With financial markers such as Brent Crude and WTI prices returning to...
The Pound against the U.S. Dollar broke 1.38, a critical psychological support/resistance level that gives bulls confidence to attack the 1.40 level.
GBP/USD Looking For Positive Vaccine Results
The recent tailwind in the Pound has mainly come from the number of initial doses the U.K. has distributed amongst its citizens. More than 10 million people in the...
Amongst U.S. Dollar strength across the board coming into 2021, the Euro has come roaring back on further optimism on the vaccine, alongside asset markets strength.
Mario Draghi Boosts The Euro
There has been a clear downtrend from February’s start, following a clean channel downwards towards 1.195. However, around the 6th of Feb, the pair broke out of the...
The headline says it all – market euphoria has reached an all-time high. However, given the events that have occurred in 2020, it feels like it is just another day at the office. For the most part, it is.
Bitcoin Reaches All-Time Highs
Bitcoin reached an all-time high earlier in the U.S Trading session, touching $43,000. This is primarily due to Tesla CEO,...
The New Zealand Dollar against the U.S Dollar has been a good barometer for the state of risk-on assets. It currently sits at around 0.7195, with technicals showing a possible strong move in the future. We now see a flat bottom wedge forming, with the wedge's completion seeing the NZD/USD make a violent move to the upside.
Historically, the price is in an area...
The Dollar Index (DXY) has been positive going into 2021, returning just under 2% year to date. Goldman Sachs. With Goldman Sachs and other large institutions touting their bearish views due to Joe Biden’s stimulus, low-interest rates and an appetite for Gold, the recent strength in the dollar has tested their analysis.
However, with Morgan Stanley abandoning...
Brent Crude broke a critical fundamental level of $57 a barrel, a psychological resistance that may see Brent continue to price pre-Coronavirus levels.
This is likely on the news that more Americans have received at least one dose of a Coronavirus vaccine than having tested positive for the virus. The United States has been administering vaccines to citizens...
