GBP/USD reached a near-term low on November 10th at 1.1334. As the US Dollar continued to move lower, GBP/USD continued to move higher. The pair reached a high of 1.2034 on November 15th and pulled back in a pennant formation on the 240-minute timeframe. As price reached the apex of the pennant, it broke out to the topside on November 22nd. The next day,...
The EUR/JPY failed to break out above its trend line. Instead, it is currently displaying a large bearish engulfing candle. Watch out below!
Speculation that we may have reached peak inflation has helped to boost the appetite for low-yielding assets today, including the yen. Growth concerns amid soft PMI data as revealed by weaker PMI numbers from around the...
Gold and silver gave up much of their earlier gains. Questions remains as to whether precious metals will be able to rise significantly from here in this macro environment.
Although the case for peak inflation has grown, the fact that interest rate increases are not yet pausing in the US and elsewhere means holding zero-yielding gold and silver represent an...
The industrial metal topped on March 7th at 5.0395. However, for the next 3 months, HG sold off aggressively and made a July 15th low at 3.1315! Fears of increased inflation, increased interest rates, and increased Covid cases in China led to a fear of lack of future demand. Copper traded between 3.2430 and 3.7830 from mid-July and November 10th, when it gapped...
Gold has been trending lower over the past couple of days, potentially catching down with copper and oil.
do watch out for a sharp correction in the metal, with oil and copper already falling sharply on Chinese demand concerns this week.
Gold had been able to hold its own relatively well so far, but as we warned in the previous post, a correction was likely....
US indices bounced off their lows in the afternoon session after trading lower along with a slumping yuan, oil and copper. WTI (-4.0%), silver (-2.5%) and copper (-2.0%) have all sold off on the back of a rebounding US dollar and as sentiment was hurt by concerns over China’s economic health amid the latest Covid outbreak.
At the time of writing, the S&P had...
After hitting a new high in this recovery phase, gold gave up its gains to turn flat on the day despite the softer PPI print. Though there are no concrete signs of a bearish reversal yet, the metal has nonetheless turned lower from an important technical area, which means the bulls should proceed with some caution after what has been great few days for the...
Last week’s fall in the US Dollar after the October’s CPI was released has been quite rapid. Add in hawkish comments from the SNB’s Jordan, and it’s a recipe for USD/CHF to head lower. Indeed, the pair did move from a local high of 1.0147 down to 0.9398 in just three days.
Is it time for USD/CHF to bounce? Notice the RSI in the bottom panel of the chart. It...
After last week’s big 5% rally, gold has arrived at a major inflection point around $1770 to $1880 area, where it may encounter some resistance as the dollar sell-off potentially pauses.
Gold bulls would certainly want to see some upside follow-through, but a bit of consolidation and pullback wouldn't be a bad thing as it will help to work off short-term...
The much softer-than-expected US CPI data has lifted everything, with the Dow rising by 1000, German DAX hitting a 5-month high and GBP/USD surging by 300 pips no less.
It has even helped to underpin cryptocurrencies after what has been a very painful few days in BTC's history.
Bitcoin has risen back above $17K and was trying to get back above the June low and...
USD/MXN has been moving lower since April 2020 in a descending triangle. On a weekly timeframe, the pair found a zone of support between 19.5491 and 20.0338. USD/MXN bounced a number of times and tested the top downward sloping trendline of the channel, failing each time. As USD/MXN nears the apex of the triangle, is it ready to break lower? On May 30th, the...
The sell-off in cryptocurrencies has gotten worse.
FTT, the FTX token, is reeling after giving up as much as 88% of its value this week. Bitcoin dropped to a new low for the year after breaking the June low. Solana lost a third of its value today before bouncing off the lows. You get the picture.
Cryptos have sold off sharply over the past couple of days on...
The big rally on Friday in global stock indices, metals and oil were mostly attributed to optimism about China dropping its zero Covid policy. At the weekend, however, Chinese officials affirmed “unswervingly” the country’s strict stance on Covid. This should have been negative for risk assets. And although that’s how it proved first thing at the Asian open, as...
Silver, copper and other metals surged higher today, as the dollar fell despite a strong US jobs report.
There’s been a lot of talk that China is – finally – poised to exit its strict Covid Zero policy, a move that could kick start the slumping economy and underpin its stocks and currency. That’s how the markets have behaved today, as shares in Hong Kong and...
The Nasdaq broke back below the June low and support around the 10890 to 11036 area, after the rebound we saw in October faded before plunging on the back of a very hawkish Powell on Wednesday.
This is a bearish development, which strongly suggests we might see a new low on the year beneath the October low at 10432.
After bouncing off their worst levels earlier,...
The ECB meets this week and is widely expected to increase rates by 75bps. With CPI at 10%, will the central bank indicate that it is willing to hike further going forward?
EUR/USD broke above the top downward sloping trendline of the channel today that the pair has been in since mid-February. If the pair moves above parity, the first resistance level is the...
Gold has turned lower after the Fed Chair was more hawkish than the FOMC statement suggested. The US dollar recovered, while bond yields revisited their earlier highs. Stock indices slumped to fresh lows on the day.
Overall, the Fed has given us hints that it may reduce the pace of rate hikes from December, but the hawkish comments from Powell means there's...
Gold has been unable to rebound much from its recent lows as investors remain sceptical about the Fed potentially pivoting to a more dovish stance on Wednesday – something which the equity markets evidently believe might happen, given the large rally we saw on Friday.
Before discussing the Fed further, let’s not forget that China’s equity market is slumping, and...
