After yesterday’s sell-off, European markets bounced back, lifting US futures with them, ahead of the publication of the US CPI report. The recovery is potentially due to short-covering, but it may also have something to do with UK bond yields coming off the boil a little. There’s some speculation that the Bank of England will be forced to extend its October 14...
The USD/CHF has drifted lower for the past couple of days but watch out for a USDJPY-style breakout. The price is currently testing key support at around 0.9885ish, which was previously resistance. Given the bullish price structure in the last few days/weeks, we think a bullish breakout above parity looks highly likely.
Attention turns to US data after even more...
Australia hiked rates by only 25bps last week (vs an expectation of 50bps) as it became one of the first developed central banks to slow the pace of tightening. As such, AUD/USD has been moving lower as the monetary policies of the Australia and the US diverged.
AUD,/USD has been moving lower in an orderly downward sloping channel. However, the RSI began to make...
The stronger NFP print gave rise to renewed dollar buying and this sent the USD/JPY to a new weekly high.
The USD/JPY has refused to down despite the Japanese government's buying of yen with its huge dollar reserves.
The country's foreign reserves fell by a record $54 billion in September.
This was in response to the sharp depreciation of the yen, which...
Despite the Fed dismissing speculation that it will ease off rate hikes, investors are continuing to keep gold bid above the pivotal level of $1700, after it managed to break above its long-term bearish trend line last week.
So far, it appears as though the bears are losing control of price action. The bulls have reclaimed a few important levels including last...
After dropping to our main target below the summer lows, the Nasdaq and many other global indices have staged a bit of a relief rally today.
I reckon today's recovery is driven by short-side profit-taking. As such, I wouldn't rule out the resumption of the selling around current levels of 11160ish (old support and resistance).
I would drop my short-term bearish...
Gold is likely to come under renewed pressure in my opinion, as it is now testing old long-term support around $1675 to $1680 area (also last year's low).
The Fed's hawkish tone hasn't changed, so there's no compelling reason why the dollar or US bond yields would fall significantly from here.
Yes, the BoE has restarted QE, but until Fed changes its stance, I...
In light of the BoE intervention today, we have seen bond yields plunge across the world as it has given rise to speculation that other central banks might intervene in a similar way.
As a result, low- and zero-yielding assets have all bounced back, including the Japanese yen (which was also bought by Japanese government intervening in the FX market last...
The recovery in the GBP/USD was starting to lose momentum at the time of writing, although it was not too far off the day's earlier highs. Are we going to see it fall more profoundly later on, and even see fresh lows in the cable? Or can the cable pull itself higher?
Price has come under a little bit of pressure around 1.0840 area, previously support. It tried to...
With foreign currencies tumbling, anything traded in US dollars will cost more... such as oil. Unsurprisingly, crude oil has been unable to hold onto earlier gains, and has turned lower as the demand outlook deteriorates further.
There’s also another risk that is not being discussed much in the markets right now: a full-blown emerging market (EM) currency...
Investors are staying away from gold because of rising bond yields and a very strong US dollar. Gold also costs money to store, making it even less appealing from an investment point of view in the current climate. Today the precious metal has broken another support in the $1655area. A week earlier, had plunged below key long-term support around the $1676 to $1680...
It has been a busy day for central banks, with the likes of BoJ, BoE, SNB and CBRT all making headlines with their decisions today.
The USD/JPY surged to 145.90 on the back of inaction by the Bank of Japan, before plunging to as low as 140.70 as news broke that the Japanese government had intervened to stem the drop in the yen.
The GBP/USD slipped back...
The EUR/USD looks set to break to a new low for the year, as nothing has fundamentally changed to encourage dip buyers to step in yet. Will that change after the FOMC decision today remains to be seen?
But I think the Fed is going to maintain a hawkish stance, which should keep the dollar supported.
The euro faces continued headwinds from a weak Eurozone...
With inflation remaining stubbornly high and the global economy poised to slow dramatically heading into this winter and beyond, the macroeconomic backdrop remains a major headwind for cryptoassets. With the 10-year Treasury yielding nearly 3.6% as of writing, interest rates are nearly as high as they’ve ever been for even the oldest cryptocurrency,...
In the last hour, gold has jumped sharply higher - undoubtedly, driven by short-side profit-taking ahead of the key central bank meetings in the week ahead.
Gold is now re-testing the level where it sold off from originally, namely around $1680ish. I think there is a very good chance it could head back down from here, because fundamentally nothing has...
It has been another bearish day in the markets as stocks, cryptos and other risk-sensitive assets have all dived. We are seeing repeated failure by the bulls to hold onto any gains in stocks and indices. This is a bear market. This is how it is supposed to be - especially as the economic outlook remains grim. Inflation may have eased a little bit; it is still far...
Along with European markets, Nasdaq futures have managed a small bounce during early European trade, although at the time of writing they were still holding near Tuesday's lows along with tech stocks in extended hours trading, after the index's biggest plunge since the pandemic.
After such a big decline, dip buyers will likely be very nimble today. This means...
Today’s much hotter-than-expected US inflation report has wiped out days of gains for stocks, while the dollar has rallied sharply which in turn has weighed on gold and silver.
Silver rallied to the $20 handle the day before as talks of peak inflation had weighed on the greenback. But the latter stormed back to life after a stronger inflation reading led to...
