What a difference one short day can make in the currency markets. It was just yesterday that the red-hot Australian dollar crossed above the 80-level for the first time since February 2018. The Aussie was once again treating its US counterpart as a punching bag, posting impressive gains of 4.3% in the month of February. The US dollar index has been weakening, and...
The pound has been on an incredible run against the dollar, smashing through 1.40 over the last week and gathering momentum to extend its gains.
When you look at where price is compared to the moving averages, there is an argument that the move is now quite overextended and perhaps poised for consolidation or a correction. But the MACD and stochastic just don't...
Rising bond yields are bad news for gold, which is trending lower as borrowing costs continue to spike.
A strong global economic recovery comes at a cost and what we're seeing in bond markets is indicative of investors belief that the recovery is going to be very powerful indeed and bring with it inflation. The Fed and others have sought to play down the...
Oil prices have enjoyed a remarkable rally over the last four months as the world has gone from entering the most severe wave of Covid-19 to rolling out vaccines and planning its final exit from the restrictions.
Efforts by OPEC+ have been key to this, including the surprise one million barrel cut from Saudi Arabia earlier in the year, which confirmed the group...
It's been a few weeks since EUR/USD broke below the neckline of its head and shoulders and the response since has been a little sluggish, to say the least.
The trend was starting to look very favourable for the dollar as it enjoyed a bit of a resurgence, taking out the neckline of a head and shoulders pattern in the process.
Since then, it came back and tested...
The pound has continued its impressive run against the dollar in recent weeks, despite the greenback having performed quite well against other currencies.
We've seen growing optimism around the UK economy this year following an impressive early rollout of the Covid vaccine which will enable the economy to reopen sooner and the recovery to be more...
Gold fell into bearish territory last week but since then, it appears to have found some support. Was it a false breakout or will the downtrend gather pace?
I see little reason to think that we're seeing a resurgence in gold currently. The rebound coincided with a drop in the dollar after the US jobs report, which may have provided a convenient profit taking...
It's been an interesting few days for the euro dollar pair which has given back a portion of its losses after breaking through a major level of support.
The head and shoulders that formed since early December saw its neckline break last week, setting up a potentially decent correction of the large gains over the last 10 months.
Yet, already we're seeing it...
Gold has been at risk of a bearish move for a number of weeks but a dollar breakout tipped it over the edge on Thursday.
The dollar index formed an inverse head and shoulders in recent weeks and a break above 91 took out the neckline, which could be a bullish development in the near-term for the greenback.
This is naturally bad news for the yellow metal, which...
It's been a strong run for the pound after the UK avoided a no-deal Brexit that would have been a massive setback for the economy as it grapples with its third national lockdown.
The pound overcame a number of hurdles in that period, smashing through the 200/233-day SMA band before hitting a new eight month low late last week.
Since breaking through what looked...
The pound has been on a decent run against the dollar, barely wavering in the run up to the Brexit deadline and holding on to gains after it passed.
While this is in part due to the improved fortunes that a Brexit deal brings, it's also largely attributable to the general trend of the dollar over the last 12 months. The greenback has been on a strong downward...
We've seen a decent rebound in the dollar since the turn of the year, albeit one that pales in comparison to the declines in the 10 months that preceded it, but how much further can it go?
The first thing to note is that, despite the best efforts of the Fed, US yields are still elevated as you move down the curve. While this suggests traders are buying the...
Gold prices fell heavily last week as US yields climbed above 1% on the back of the Georgia election results.
With the Democrats having secured an unlikely blue wave, Joe Biden now has the platform to deliver on some of his more ambitious priorities, including a massive stimulus plan.
The President-elect is due to outline plans as early as today, with reports...
Gold has had a great start to the year after enduring a difficult final few months of 2020.
The yellow metal smashed through $1,900 and hasn't looked back, seeing some resistance around $1,950 but not pulling back in any significant way.
The backdrop of a softer dollar is continuing to be supportive for gold, although that could be tested in the coming days...
Oil prices have been on a fantastic run since early November and with reports emerging of a deal between OPEC+ members on production in February, they've been given another bump today, up close to 4% at the time of writing.
That leaves WTI trading just shy of $50 once again, after running into resistance around here on Monday. A deal to keep output steady is...
Oil prices have been tearing higher since the start of November, rising more than 40% to return to far healthier levels.
The rally has started to slow though and with so much good news - vaccines, OPEC+ deal, US stimulus deal (almost) - now priced in, I wonder whether we're about to see a bit of a corrective move.
WTI has trended higher nicely, following the...
Gold has certainly taken a turn for the better in recent days, despite the Fed not deeming it not necessary to provide any new stimulus measures, instead extending those already in place.
This marginal easing appears to have done the job though. The dollar has continued to fall, 10 year yields haven't spiked and US stock markets are in record territory. Gold,...
There's been no lack of optimism in the markets around the prospects for a Brexit deal in recent months, despite the ultimate deadline now only a couple of weeks away.
There have been signs of nerves creeping in the last couple of weeks but broadly speaking, it's clear there's a sense of "the Boris who cried wolf" about all of this. Despite all the threats, the...
