The US dollar continues to pummel the Japanese yen. USD/JPY pushed above the 117 line earlier today for the first time since January 2017. USD/JPY is up 0.61% on the day and has recorded a massive gain of 1.76% this week.
We continue to see sharp volatility in the currency markets and the Japanese yen has not been immune to the turbulence. Risk apprehension has...
GBP/USD has reversed directions on Thursday, giving up most of the gains from a day earlier. In the North American, session, GBP/USD is trading at 1.3132, down 0.41% on the day.
In the US, headline CPI continued to accelerate, with a gain of 7.9% for February YoY. This matched the forecast and was up from 7.5% beforehand. With inflation running close to 8%, a...
Gold came within a whisker of record highs on Tuesday and it may not be done there.
The yellow metal is a traditional safe haven and inflation hedge, which makes it perfect in highly uncertain times like this. Not only is the world already desperately trying to get to grips with high inflation, it's also facing the prospect of an economic slowdown and maybe even...
The New Zealand dollar has started the week in negative territory. NZD/USD is down 0.50%, and is trading at 0.6825 in the North American session. The currency enjoyed its best week since August 2021, with gains of 1.75%. The war in Europe has drained risk appetite, but the kiwi, although sensitive to risk, is also a commodity-based currency, and has moved higher...
The decline in the EURUSD pair has really accelerated over the last week after the West imposed severe sanctions against Russia that will have implications for the global economy, in particular Europe.
Sanctions rarely work one way but they are designed to ensure the maximum and majority pain is imposed on the recipient country. Unfortunately for Europe, the...
The New Zealand dollar has posted small gains on Thursday, as NZD/USD has pushed above the 0.68 line in the North American session.
New Zealand is hugely dependent on its export industry, and the Covid pandemic has taken its toll on exports, as global demand has fallen. However, with the worst of Covid hopefully behind us, global demand has picked up, which bodes...
It's been a very volatile start to 2022 and risk aversion has certainly picked up in recent weeks following the Russian invasion of Ukraine.
The shift to safe havens has benefited the usual currencies like the dollar, Swiss franc, and Japanese yen, with the latter making significant gains against the euro.
The pair has fallen more than 4% over the last few weeks...
The Aussie dollar has been on a decent run in recent weeks against the greenback but it's suddenly struggling around an important area of resistance.
The pair has been in a downward trend for a little over a year and the top of the descending channel falls between the 50 and 61.8 fib levels and around 0.73, near the same level it failed at last week.
A move...
Japan's factory output declined for a second consecutive month as supply disruptions continue to take a toll on manufacturing. Industrial production for January fell 1.3% m/m, worse than the consensus of -0.7%. There was no relief from retail sales for January, which dropped 1.9% m/m, compared to the forecast of -1.2%. Covid health restrictions contributed to the...
Survived another big test
It's been quite the turnaround in the markets over the last 24 hours as traders quickly morphed from panicking about Russia invading Ukraine to seemingly being more hopeful and buying the dips.
The recovery has been nothing short of remarkable, especially when you consider what is still happening in Ukraine. But as we can see in...
Hopes that diplomatic moves could avert a Russian invasion of Ukraine were shattered early Thursday, as Russia launched a full-scale attack. The move was not all that surprising, given the massive Russian buildup on the border with Ukraine during the past few weeks. Still, the fighting in the heart of Europe has weighed heavily on the financial markets, as risk...
The standoff in Ukraine continues to escalate, but the financial markets remain calm for now. The US and other western nations have slapped further sanctions on Russia after Moscow sent troops to two breakaway regions in eastern Ukraine. Despite this, investor risk appetite recovered on Tuesday, and the euro, which is extremely sensitive to the conflict in its...
Brent crude came within a whisker of $100 today for the first time since September 2014 before profit-taking kicked in. Will it eventually capture this level?
There's been a number of times in recent months when $100 oil has been thrown around like it's a case of when rather than if it will hit that massive psychological level.
The shortfall of supply from...
The Japanese yen has started the week quietly and is trading slightly below the 115 line.
The focus will be on Japanese inflation indicators in the coming week, with three events on the economic calendar. Like other major economies, Japan is dealing with a rise in inflation, although the pace has been much more moderate than what we're seeing in the UK or the US....
UK retail sales rebounded in January, with a gain of 1.9% m/m, its highest monthly gain since April 2021. The increase followed a decline of 4.0% in December and beat the consensus of 1.0%. The Omicron variant of corona continues to have a significant impact on consumer spending. The December drop was a result of consumers doing their Christmas shopping in October...
The Japanese yen has moved higher on Thursday, as tensions are once again rising over the Ukraine crisis.
Invasions fears have ratcheted upwards after NATO warned that Russia could use a border skirmish as a pretext for a full-scale invasion of Ukraine. The US has rejected Moscow's claim that it is reducing its military presence on the border and Russia expelled...
The Japanese yen continues to have a quiet week and is trading at 115.46 in the North American session, down 0.12% on the day.
The US dollar enjoyed a boost earlier in the week as tensions between Russia and the West reached a fever pitch. Now that the situation has stabilized somewhat, investors are breathing easier and the dollar has lost ground. Still, there...
It has been a quiet week for the Canadian dollar, despite the crisis between Ukraine and Russia, which has captivated the world's attention. The lack of movement could change on Wednesday, as Canada releases the inflation report for February.
Canada's CPI looked weak in December, with a reading of -0.1% m/m. However, inflation is expected to have jumped in...
