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%...
Week ahead! Speeches, Interest Rates and PMI’s
Hello traders! This week ahead, we have many events that directly affect significant currencies such as the GBP, USD, the NZD, and the Euro. Trades should be aware of these critical events not to be whipsawed by the market. Here is your week ahead
Monday, 21st September – UK’s Inflation Report Hearings
UK...
The pound against the US Dollar has returned 11.4% since its March lows. As well all know, a lot has happened since March. But what has not come to fruition is the Brexit talks. As the transition deadline for the UK to leave the EU approaches, Brexit talks have suddenly come back into the spotlight. However, Prime Minister Boris Johnson has thrown a wrench in the...
Much of the excitement that fueled the rise in the NASDAQ and many equity markets has fizzled out on a recent downbeat and neutral news on the Coronavirus development.
From its March lows, the NASDAQ 100 has returned 83.26% from its peak at the start of September. This legendary market rally came from Jerome Powell and the Federal reserve’s loosening monetary...
Oil has been ranging in a consolidation zone from its recovery from its March lows. It has been up and down based on the fundamental news of the day. However, is Oil the value play of the year, or is it a value trap?
Whats a value play/trap?
A value play is usually associated with stocks trading at a lower price than what the company’s future performance may...
After two official terms and nine years in office, Shinzo Abe is stepping down as Prime Minister of Japan. He is replaced by 71-year-old Yoshihide Suga, formally the Chief Cabinet Secretary but informally, Abe’s right-hand man. The question becomes, will Suga try and reinvigorate Japan’s Economy using new methods, or will it be another term of Abenomics, without...
There was this substantial rise in Gold in July. Touted as the “safe haven,” many reasons were stated as the reasons for Gold’s rise. Inflation, currency debasement, risk-off, etc.
However, I believe we saw three different types of correlations in Gold this year. The first one was the “risk-off” trade. Investors and traders buy up Gold during the equity...
The stock of the week continues the luxury brand trend of last week’s stock, Farfetch. While that company specializes in delivering luxury goods directly to customers, Tiffany specializes in the complete opposite.
Tiffany & Co’s Business:
Tiffany and Co, an American Luxury Retailer, founded by Charles Lewis Tiffany in 1837, have opulent buildings across the...
The ECB decided to leave interest rates unchanged, with interest rates staying at negative 0.5%.
The ECB stated that it is closely monitoring the recent strengthening in the Euro, citing inflation issues in the medium term Christine Lagarde noted that it would “Carefully assess incoming information including developments in the exchange rate, with regards to its...
Markets sold off as risk-off sentiment continue to seep into investors and traders’ heads.
The largest move downward was in the Oil markets, where Brent Crude and WTI were down 7 and 8% respectively, fearing that the demand recovery as stalled. The Summer Holiday in the United States, primarily associated with peak demand in Oil, currently marked its close on the...
The pound is down 2% against the U.S dollar in the past couple of days, on growing prospects that the United Kingdom will leave the European Union without a trade agreement.
Brexit talks are set to continue this week, with UK’s Prime Minister Boris Johnson playing hardball with European Officials. He has imposed a October 15 deadline, to which he plans to quit...
Last week was a bloody week in the markets, with US equities selling off on fears that the market has been overstretched. The NASDAQ, Dow Jones, and the S&P 500 were down 4.52%, 3.66%, and 3.28%, respectively. – talk about NFP
As we approach election season in the United States, traders should be looking out for changes in future policies which may whipsaw the...
De-risk! The market pulled back today on expensive tech stocks, overstretched valuations, with investors questions whether the stock market still has legs.
Steep valuations forcing a pullback
The FAANG stocks took the biggest hits as investors start to question their lofty valuations. Facebook and Apple are currently trading at 37 times price to earnings,...
The NASDAQ 100 continues to see Green, with the index up almost 1% today. In the past 120 days, the NASDAQ 100 is up 70% from its March lows, with only 42 days in red.
Market consensus is that the recent rise in equities is primarily due to the Fed’s wave of liquidity, not an uncommon view. However, it is interesting to note that recently dovish outlooks from...
We’ve recently talked about the potential demise of the U.S. Dollar. What currency is poised to benefit the most from the devaluation of the dollar? Euro is the first thing that comes to mind.
Shortly after the safe-haven trade that pushed the dollar up against major currencies, the Euro started to rally over the U.S. dollar. After strongly piercing through 1.10,...
