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...
Cable has had a rough 4-week stretch, shedding over 800 pips from the mid-August high above 1.2200 to trade near 1.1400 earlier this week. In fact, on Wednesday, the pair briefly hit its lowest level since 1985!
Bulls did finally step in to defend that key support level near 1.1415, taking the pair back up to the mid-1.1600s during today’s European session....
Gold has repeatedly hit resistance around the $1725 area. The metal has been struggling all year because of rising interest rate expectations from both side of the Atlantic and a strong US dollar. But with the lack of any further news on inflation and interest rates this week, the metal has been able to climb higher a tad. It briefly poked its head above that...
Ahead of the ECB policy decision, the EUR/USD bounced back quite sharply to turn back positive on the week and rise above parity. Is this the start of a new counter-trend rally or just short-covering ahead of a key risk event? It is worth watching the EUR/USD to see how it fares by the close of play, when traders will have digested the ECB move and Powell's...
Silver couldn’t hold onto its earlier gains as recession concerns around the world continue to boost the appetite for US dollar. Investors are becoming more and more convinced that the Fed is going to raise rates by another 75 basis points this month and proceed with further aggressive hikes until inflation comes back under control.
Silver's price action would...
The world’s oldest cryptoasset has had a quiet week, with prices consolidating in an abnormally tight $1,000 range centered at the key $20,000 level for the last seven days.
In a way, the quiet price action can be viewed as a win of sorts for crypto bulls, given the fact that the typically-correlated Nasdaq 100 index has fallen nearly 3% over the last week, but...
Following the goldilocks jobs report, US stocks rallied and added to their rebound from the second of Thursday's session. However, the markets remain in a longer-term bear trend and are not out of the woods. The Fed is going to be tightening its policy aggressively in coming months, which should put a ceiling on asset prices.
The bears must now wait for the...
Gold and silver are both suffering because of similar reasons: rising interest rate expectations from both side of the Atlantic and a strong US dollar. The latter has underperformed lately due to elevated concerns over the health of the Chinese economy where the nation’s zero-COVID policy and energy issues have hit the sector. But overall, it is all about monetary...
Eurozone CPI came in hotter than expected this morning, hitting a record high of 9.1% year-over-year. Despite worries about surging energy prices (up 38% y/y, even before cold winter weather arrives) driving the continent into recession, the ECB will be forced to act aggressively to fight inflation at next week’s monetary policy meeting; indeed, economists at both...
EUR/USD made headlines for briefly dropping below parity (1.00) for the first time in nearly 20 years in mid-July, then again throughout most of last week’s trade, but the pair is starting this week’s trade on a bullish note as it peeks above that key psychological level.
Interestingly, the pair’s RSI indicator is showing a bullish divergence with rates over...
