Gold is looking for an excuse to go higher…
…And that excuse is the devaluation of the dollar. Gold is not immune to fundamental events. However, recently has been sideways for the most part of two months.
Gold and the election
A theme revolving around Biden’s win is the dollar’s devaluation, with many banks calling a drop in the dollar if Biden is elected....
We are 13 days away from the election. Many polls state that Biden is winning the votes – however that’s what happened in the 2016 election. With big banks citing a decline in the Dollar over a Biden win, what will happen to commodity currencies such as the Australian Dollar and the Canadian Dollar against the US Dollar?
The Australian Dollar against the US...
Elimination vs. suppression – What’s the difference?
In short, Elimination and Suppression can be categorized by “Hard and Fast” and “Low and Slow.” Elimination is akin to ripping the band-aid off, in which one hopes the intense pain is short and quick and can be over and done with. Suppression is akin to slowly ripping off the band-aid in hopes of spreading out...
Who else feels like this year has gone by so quickly? Each week ahead article, I have been talking about how the election is coming and how volatile times are coming ahead. Now we are neck-deep into election season, with the first one in New Zealand granting Jacinda Ardern and her party a landslide victory, enabling them to govern themselves. All eyes now are on...
The Pound against the US Dollar is currently one of the most exciting pairs to be keeping an eye on, as it is essentially fighting between a rock and a hard place. Currently ranging just under 1.30, both nations have events coming up that will significantly shift the currency pair in either direction.
In the UK, we have Brexit negotiations affecting the Pound...
Coronavirus. Vaccine? Biden. Next President? Brexit. Done in our lifetime? With a lot of uncertainty and volatility in the markets, what party do the markets want?
Equity Markets
The historical sentiment was as follows – A Democrat government is said to increase taxes and increase spending on the welfare, therefore fewer earnings for companies, hence prompting...
Earnings season! As we end another quarter, public companies worldwide will start to open up their books to the market, showing us how well (or not well) they did during the Coronavirus. Here’s your week ahead.
Monday, 12th October – ECB President Speech
With the ECB signaling that they are ramping up measures to meet their mandate of 2% by slashing their already...
We saw a retest of the 0.92 mark in early September when the Swiss Franc against the U.S. Dollar rallied as investors embraced the currency’s safe-haven status. Will we see a further strengthening of the Swiss Franc?
Where did the Swiss Franc get its “Safe Haven” reputation?
In 2011, the Swiss National Bank pegged the Swiss Franc at 1.20 against the Euro as...
AUD/USD has been a strong performer in the currency markets, returning just under 30% since its March lows. We talked about how the Australian dollar was poised for a rally on a market recovery earlier this year.
The market has recovered, and the Australian dollar has recovered with it. This was due to the Australian dollar being mainly a “commodity currency,”...
Gold is up nearly 3% in the past couple of days as President Donald Trump’s hospitalization due to him contracting the Coronavirus shook the markets. Like many times this year, Gold has been an anchor on volatility, providing stability in a portfolio when markets dive. However, what about the factors that are usually discussed to propel Gold past its previous...
ust as you think things couldn’t get weirder – arguably the most powerful man in the world, President Donald Trump, and the First Lady contracted the Coronavirus. This is after their aide, Hope Hicks, was stated to have contracted the Coronavirus the day before their announcement. This week ahead could be interesting.
There have been conflicting accounts to...
The cable experienced wild swings as Brexit, and its economy weighed slammed traders and investors into a volatile session.
GBP/USD fluctuated from the lower bound of 1.28 to the upper bound of 1.29 in a matter of hours as the market took in information regarding Brexit and the UK’s GDP figures.
The Internal Market Bill passed by the UK government to override a...
The largest oil consumers are both the United States and European Union – making up around 34% of the worldwide 100 Million demand (before the Coronavirus). Both Countries / Continents have seen daily increases in their Coronavirus case count. The United States currently has 7.1m Coronavirus cases, while Europe has around 5 million cases. Coincidentally (or not) –...
A revival of the Dollar? As we get closer to the election, investors and traders can see one thing in the future – uncertainty. Therefore, we can see market participants start preparing for the unknown.
As debates and the election coming up, statements will be said, and policies will be announced to sway the markets significantly. Over the past five days, the...
It is officially five weeks out until the United States Election. Expect an increase in volatility in the markets as we get closer to the official election dates. It is interesting to note that New Zealand’s elections will be held two weeks after the US elections – throwing an extra spanner in the works. Here is your week ahead.
Dates are in NZDT.
Wednesday,...
The Euro against the US Dollar is approaching 1.165 – a historically busy support/resistance area.
Traders and investors in the past couple of months have seen an 11% appreciation in the Euro. From a country’s viewpoint, an appreciating currency is seen as bad as it makes the countries (in the case, the continents’) exports more expensive for other countries....
Similarly to the United States, New Zealand has its elections coming up in 25 days. What's the future of the New Zealand dollar once a party is enacted?
Generally speaking, there are two "main" parties in New Zealand – national and Labour. From a thousand miles away, National vs. Labour would be compared to Democrats vs. Republicans.
National can be categorized...
Silver has had a legendary run this year, is heavily correlated with Gold. However, that was only in regards to the movement.
Before September, Silver has outperformed Gold year-to-date, and even from its March lows. Year to date, it has returned just under 50%. Meanwhile, Gold has returned 27%. From March, Silver has returned 68%, while Gold only returned 24%...
