The New Zealand dollar against the U.S. dollar is facing a critical fundamental event tomorrow: RBNZ’s Interest Rate decision. New Zealand has been fortunate that the government’s decision to go “hard and fast” has meant citizens have had relative freedom through Christmas and New Years’.
NZD/USD eying out RBNZ meeting
The NZD/USD is currently sitting at around...
Week ahead
· CNY PBoC Interest Rate Decision
· NZD Retail Sales Q4 & RBNZ Interest Rate Decision
· GBP Unemployment Rate 3m
· USD GDP Q4
We have a relatively fair number of economic events this week ahead. However, they are relatively significant in their effect on the financial markets and further fundamental guidance.
We've seen risk-on in...
We have seen a clear downtrend in the USD/JPY since the U.S peaked in early April. The Coronavirus saw a rush to the cash, specifically the Greenback.
However, with the financial markets roaring back to life since then, the love for the Greenback has faded. Furthermore, many Japanese investors bringing back their capital out of U.S stocks back into their home...
NZD/AUD is approaching a robust congested area at around 0.925. A downwards channel sees a possible move further lower may see the pair come a level below 0.9. However, an action lower will be dictated on which economy puts the brakes on monetary stimulus first.
Monetary policy dictated by the state of the economy
During the peak of the Coronavirus, the best...
Markets are Frothy
Here's an interesting juxtaposition. There are currently just over 25 Million Currently Infected Patients of Covid-19, with 2.4 million deaths*. However,
· Tesla is up nearly 2,000% since the start of 2019. A luxury electric car company whose slim profit can be primarily contributed to government credits is worth more than Facebook.
· WTI,...
This week ahead, we have a plethora of data coming out across the world dictating the strength of “main street” and its contribution to the Coronavirus Pandemic’s global recovery.
With that said, the Coronavirus continues to present itself as a factor pulling back the global economy’s growth. With financial markers such as Brent Crude and WTI prices returning to...
The Pound against the U.S. Dollar broke 1.38, a critical psychological support/resistance level that gives bulls confidence to attack the 1.40 level.
GBP/USD Looking For Positive Vaccine Results
The recent tailwind in the Pound has mainly come from the number of initial doses the U.K. has distributed amongst its citizens. More than 10 million people in the...
Amongst U.S. Dollar strength across the board coming into 2021, the Euro has come roaring back on further optimism on the vaccine, alongside asset markets strength.
Mario Draghi Boosts The Euro
There has been a clear downtrend from February’s start, following a clean channel downwards towards 1.195. However, around the 6th of Feb, the pair broke out of the...
The headline says it all – market euphoria has reached an all-time high. However, given the events that have occurred in 2020, it feels like it is just another day at the office. For the most part, it is.
Bitcoin Reaches All-Time Highs
Bitcoin reached an all-time high earlier in the U.S Trading session, touching $43,000. This is primarily due to Tesla CEO,...
The New Zealand Dollar against the U.S Dollar has been a good barometer for the state of risk-on assets. It currently sits at around 0.7195, with technicals showing a possible strong move in the future. We now see a flat bottom wedge forming, with the wedge's completion seeing the NZD/USD make a violent move to the upside.
Historically, the price is in an area...
The Dollar Index (DXY) has been positive going into 2021, returning just under 2% year to date. Goldman Sachs. With Goldman Sachs and other large institutions touting their bearish views due to Joe Biden’s stimulus, low-interest rates and an appetite for Gold, the recent strength in the dollar has tested their analysis.
However, with Morgan Stanley abandoning...
Brent Crude broke a critical fundamental level of $57 a barrel, a psychological resistance that may see Brent continue to price pre-Coronavirus levels.
This is likely on the news that more Americans have received at least one dose of a Coronavirus vaccine than having tested positive for the virus. The United States has been administering vaccines to citizens...
In the early 1600s, Tulips first arrived on the shores of Holland from Turkey. The flower was exotic, beautiful, and nothing like any other flower that grew in Holland at the time.
Tulips and Gamestop
Like Turmeric was to the UK before exploring India, Tulips became an extremely exclusive and highly luxurious status symbol. It was stated that “it was deemed a...
We see the AUD/USD play well into the macro recovery story. The historically known commodity currency blasted past 0.75c in the latter part of 2020.
Technical are looking positive for the AUD/USD
We previously talked about how there were clean wicks straight 0.76 and how a breach of a key 161.8% entrancement level at around 0.77c would see clean traffic to 80c....
If there is a time for a currency to be relatively weak, it's during recessionary periods. A stronger currency entails a rougher time for goods and services to be exported out of the country as those exports are more expensive due to the stronger currency.
This is currently the case for the Euro. From August last year to the latter part of 2020, the EUR/USD...
We have a relatively light data week ahead regarding the amount of significant data points coming out. However, the economic events are extremely significant in determining the state of their respective economies. Hope you all are staying safe. Here is your week ahead.
Tuesday, 26th January – United Kingdom’s Unemployment Rate
United Kingdom’s Coronavirus...
In 2020, Silver had a legendary rise from its low during the peak of the Coronavirus lockdowns in March – up over 140%. Analysts (including me) attempted to justify its price and separate its strong correlation with Gold by arguing that Biden’s climate change policies will boost Solar Panels’ use, which extensively uses Silver. This may be a catalyst in the longer...
Four years have passed, and now we usher in a new United States President: Joe Biden. A complete U-turn from what Donald Trump stood for. Nationalism is now replaced with Progressive politics. The question arises, how will President Joe Biden’s 100-day agenda affect the markets?
Joe Biden And Eliminating The Virus
President Biden is a firm believer that for...
