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...
In the early 1600s, Tulips first arrived on the shores of Holland from Turkey. The flower was exotic, beautiful, and nothing like any other flower that grew in Holland at the time.
Tulips and Gamestop
Like Turmeric was to the UK before exploring India, Tulips became an extremely exclusive and highly luxurious status symbol. It was stated that “it was deemed a...
We see the AUD/USD play well into the macro recovery story. The historically known commodity currency blasted past 0.75c in the latter part of 2020.
Technical are looking positive for the AUD/USD
We previously talked about how there were clean wicks straight 0.76 and how a breach of a key 161.8% entrancement level at around 0.77c would see clean traffic to 80c....
If there is a time for a currency to be relatively weak, it's during recessionary periods. A stronger currency entails a rougher time for goods and services to be exported out of the country as those exports are more expensive due to the stronger currency.
This is currently the case for the Euro. From August last year to the latter part of 2020, the EUR/USD...
We have a relatively light data week ahead regarding the amount of significant data points coming out. However, the economic events are extremely significant in determining the state of their respective economies. Hope you all are staying safe. Here is your week ahead.
Tuesday, 26th January – United Kingdom’s Unemployment Rate
United Kingdom’s Coronavirus...
In 2020, Silver had a legendary rise from its low during the peak of the Coronavirus lockdowns in March – up over 140%. Analysts (including me) attempted to justify its price and separate its strong correlation with Gold by arguing that Biden’s climate change policies will boost Solar Panels’ use, which extensively uses Silver. This may be a catalyst in the longer...
Four years have passed, and now we usher in a new United States President: Joe Biden. A complete U-turn from what Donald Trump stood for. Nationalism is now replaced with Progressive politics. The question arises, how will President Joe Biden’s 100-day agenda affect the markets?
Joe Biden And Eliminating The Virus
President Biden is a firm believer that for...
Here are two fun facts from equities in 2020.
· The NASDAQ returned 46% from the start of 2020. If you purchased at the peak of the recessionary period in mid-March, you would’ve made a return on investment of 85%.
· Meanwhile, the S&P500 only returned 17% from the start of 2020.
· The average price/earnings ratio for stocks in the NASDAQ was pushing 23
· The...
The Dollar has been experiencing some love coning into the new year, with the DXY up just under 1%. However, is this just a technical rebound, or is there substance for a further rally?
Technical show the Dollar is in a historically congested
The DXY is currently in a zone where the Dollar has historically consolidated before making a move lower or higher,...
With the new strain of the Coronavirus causing concern across the world, many countries that continue to battle the Coronavirus hope that the vaccine gives them a head start before the strain does any more damage. This week will also see a new President take office, Democrat Joe Biden, on the 20th January US Local time. Here is your week ahead.
All dates are in...
It has been 15 days into the new year, but it feels like a year’s worth of events has already occurred. Most notably:
Capitol Attacks from Pro-Trump protesters
Tesla, a company that technically does not make a profit (without the help of regulatory credits), is worth around $800 Billion, around about $100 Billion less than Facebook. Elon Musk is now the...
Like Tesla, Gold has had a legendary 2020. Gold reached all-time highs just shy of that $2,080/Oz mark before retracing in the latter part of 2020.
Gold ETF’s Ballooned to over $550 Billion inflows, to the point where Gold ETF managers had nowhere to store the Gold they purchased for the ETF’s.
With Gold at around the $1,850/Oz mark, investors and traders wonder...
24th February 2020 was when the last time we saw oil hovering around the $55.80 mark. The Oil markets were hammered in 2020, taking investors and traders back to their economics 101 classes.
However, unlike traditional markets, the Oil markets have something traditional markets do not – controlled supply.
OPEC+ controlling the supply of Oil
OPEC+, a 24-...
Hello! I hope you guys had a good Christmas and a Happy New Year, refreshed for the trading year. Before your week ahead, here is what you may have missed over the break.
Vaccine rollouts have started all across the world, primarily in the United States and in the United Kingdom
OPEC+ Implemented a surprise cut that has become a tailwind for the price of...
Margaret Keenan. At 90 years old, she was the first patient in the United Kingdom to receive the Pfizer-BioNTech. The CEO of England’s NHS, Simon Stevens, stated that “I think there’s every chance that we will look back on as marking a decisive point in the battle against the Coronavirus” You would have thought we should have seen a massive spike in the markets....
All eyes will be on the UK’s rollout of the Pfizer-BioNtech vaccine this week ahead, as the first western country to approve a Coronavirus vaccine starts to vaccinate front line workers. However, the NHS medical director warned the vaccine distribution would be a “marathon, not a sprint” and that it will take “many months” to vaccine everybody who needs it. Is...
