The US dollar's position as the primary global reserve currency is being challenged as countries become eager to insulate themselves from Washington’s influence.
For decades, the dollar has dominated the global monetary system. Currently, about 60 percent of foreign exchange reserves held by central banks are in US dollars, and nearly 90 percent of all currency...
The price of gold hit a high of $1,971/oz before retreating and finding support above $1,960. Upbeat equities and higher Treasury yields make it difficult for XAU/USD to continue its recent rally. Fears of a wider banking contagion have also abated, hurting demand for safer assets. The market cheered First Citizens Bank’s agreement to buy all deposits and loans of...
Which way will Bitcoin break out of last week’s range? On screen I have highlighted the price range between $29,000 and $26,700, representing the high and low of the week-long ranging period. The price has flirted with a break to the downside, touching as low as $26,500, but a confident close below $27,000 is still to occur.
Bitcoin surged in March as confidence...
Two significant events have occurred within the past 12 hours, causing both GBPUSD and gold prices to surge.
The first event was the unexpected rise in UK inflation, which jumped from 10.1% in January to 10.4% in February 2023, marking the first increase in four months. The primary factor behind this increase was the soaring food and drink prices, which surged...
The US Federal Reserve is about to begin its two-day policy meeting and will announce its latest interest rate decision 48 hours later. During the meeting, officials will weigh the possibility of raising interest rates due to inflation, which is still considered high, or whether the current turmoil in financial markets should be given more weight. Unfortunately,...
As a trader, choosing the right leverage level can have a significant impact on your trading results. Two of the most common leverage options are 1:30 and 1:500. But how do you decide which one is right for you?
To understand the difference between 1:30 and 1:500 leverage, let's take the example of trading 1 lot of EUR/USD. With 1:30 leverage, a trader would...
After a brief period of calm following the collapse of Silicon Valley Bank, Credit Suisse disclosed "material weaknesses" in their financial reporting controls and ongoing customer outflows, setting off another bout of instability across global assets. Credit Suisse's biggest investor, Saudi National Bank, also noted that it could not offer more financial support...
Over the past few days, we have seen the second and third largest bank failures in US history. A question remains whether we have seen the last of these failures and what other ripple effects could occur.
In the currency markets, the dollar index dropped below 104, reaching a three-week low for the third consecutive session. Signature and Silicon Valley Bank's...
The USD/CAD might be a popular pair to trade this week with the Bank of Canada (BoC) releasing its latest interest rate decision at the exact same time that US Federal Reserve Chairman begins the second day of his Semiannual Monetary Policy Report to Congress. These events coincide at 10am Wednesday (EST).
The Bank of Canada is expected to maintain its interest...
Forex Alert: Fed Officials' Six-Hour Speech Marathon
Will the numerous appearances of US Federal Reserve officials rock the market during the closing hours of this trading week?
Over the course of six hours leading up to the market's closing this week, we will hear from Lorie K. Logan (Dallas Fed), Raphael Bostic (Atlanta), Michelle W. Bowman (Board of...
The new governor of the Bank of Japan, Kazuo Ueda, is currently in the spotlight as traders attempt to determine how closely he will adhere to his predecessor's ultra-loose monetary policies. Despite inflation in Japan reaching a 40-year high, Japanese interest rates have remained unchanged, causing the yen to weaken considerably over the past year. In his...
The gold-silver ratio is a key metric that traders use to assess the relative value of gold and silver. The ratio is calculated by dividing the price of gold by the price of silver and is used to determine whether one of these precious metals is under or overvalued. Effectively, the ratio tells you how many pieces of silver you could purchase for one piece of...
We have learned that almost all US Federal Reserve officials backed a 25-basis-points rate hike at the last FOMC meeting held on January 31 to February 1.
Only a few officials favored a larger 50-basis-points hike at the meeting or said they "could have supported" it. Even so, many more dovish sentences were spoken in the latest meeting than compared to the...
The Reserve Bank of New Zealand will deliver its second interest rate decision of 2023. The decision is release on Wednesday 2pm NZDT (Tuesday 8pm EST) What makes this interesting is that the country has just been hit by Cyclone Gabrielle which has reportedly caused more than NZ$12 billion worth of damage to infrastructure and private property. As such, some...
A beautiful amount of volatility entered the market after the release of the US inflation data a few hours ago. Some large wicks presented in the GBP/USD which eventually tested and rejected at 1.2121 to the downside. Although, the more interesting wicks occurred exactly at the time of the release, with the market feeling out a high of 1.2270 and a low of 1.2150....
It is prudent to examine the strength of the US dollar against the pound in the lead up to two very important inflation data reports. First is the US inflation data due on Wednesday morning at 2.30 am (NZDT). And second is the UK’s inflation data on Wednesday night at 8.00 pm (NZDT). The annual US inflation rate to January 2023 is expected to fall to about 6.2%...
The cryptocurrency market is largely decentralized, in theory, meaning that no single entity or group controls it. However, there are many individuals and organizations in the market that have significant influence and followers, who they can use to manipulate cryptocurrency prices. Some of the most prominent crypto influencers include:
Vitalik Buterin: Vitalik...
The EUR/USD exchange rate is hovering just above $1.07, close to a nine-month high of $1.1034 reached last week. This is due to the European Central Bank's (ECB) hawkish stance, as ECB board member Isabel Schnabel has stated that the recent interest rate hikes by the ECB have had little effect on inflation. The ECB has raised interest rates by 50 basis points at...
