Oil is currently hovering at two-month highs. Brent, the global benchmark of Oil, now sits comfortably above $44 a barrel, approaching a strong resistance area of $45 and $46 a barrel.
Oil has retested this resistance level multiple times in the past couple of months, with price rejecting the area firmly due to weak fundamentals.
Oil and it’s past weak...
Are we going to see the NZD/USD at 0.74? With Joe Biden most likely to be the next President, many predict a de-dollarization to occur as the opportunity cost of investing in the United States is expected to decrease, placing pressure on the greenback downwards.
NZD/USD – Countries are polar opposites
This pair is interesting, as both countries are on the...
When all is well and good, Joe Biden is most likely to be the 50th President of the United States. We can finally put the election behind us and focus on the recovery of the economy stemming from the effects of the Coronavirus. Here is your week ahead.
Monday, 9th and Tuesday 10th November – Bank of England’s Governor Andrew Bailey Speech
The elections drew our...
Gold has rallied as the election has slowly been unfolding. Currently, Gold has been hovering at $1,950. However, is this because it’s a safe haven? Or is it because Gold has a “risk-on” sentiment associated with it?
Barrick Gold seems to think it’s the former. The company, which Warren Buffet recently invested $600 Million in, recorded an almost threefold...
As predicted by many analysts, the Reserve Bank of Australia has slashed rates from 0.25% to 0.1%, a 15-point cut. Furthermore, they’ve decided to buy back over $100 Billion government bonds of maturities around 5 to 10 years over the next six months.
The Australian Dollar again, the U.S dollar was down slightly at 0.44%. The ASX 200 was up around 1.88% on the...
Week ahead – United States Election!
With over 93 Million US Citizens voting early, surpassing two-thirds of all 2016 and consisting of 43% of registered voters, the United States election is finally two days away this week ahead. Many regard this as one of the most important Presidential Elections in history, possibly changing society’s fabric in the United...
Earlier this year, I talked about a “perfect portfolio idea,” which included buying the NASDAQ and Gold. The basic idea was based on a positive correlation between the two assets on an uptrend, with Gold staying relatively flat if the NASDAQ fell. Gold fell alongside equities today, falling around 1.67% to $1,877 an ounce.
However, the correlation has broken down...
It is no surprise that Oil has had a rough couple of patches this year, with the Coronavirus shattering oil demand. What will it take for Oil to push back past $45?
There has only been a couple of times where Oil has made strong moves to the upside, notably today and a couple of weeks ago when hurricanes approached the Gulf coast, forcing oil rigs to shut down...
Stimulus, or lack of, has been the talk of the markets recently. The main indexes are showing its most substantial decline since the start of September. Dow Jones, the worst performer of the US session, is down around 3.2%. At the same time, the S&P 500 and NASDAQ are down around 3%, respectively.
With the last full week away from the election, alongside stimulus...
Gold is looking for an excuse to go higher…
…And that excuse is the devaluation of the dollar. Gold is not immune to fundamental events. However, recently has been sideways for the most part of two months.
Gold and the election
A theme revolving around Biden’s win is the dollar’s devaluation, with many banks calling a drop in the dollar if Biden is elected....
We are 13 days away from the election. Many polls state that Biden is winning the votes – however that’s what happened in the 2016 election. With big banks citing a decline in the Dollar over a Biden win, what will happen to commodity currencies such as the Australian Dollar and the Canadian Dollar against the US Dollar?
The Australian Dollar against the US...
Elimination vs. suppression – What’s the difference?
In short, Elimination and Suppression can be categorized by “Hard and Fast” and “Low and Slow.” Elimination is akin to ripping the band-aid off, in which one hopes the intense pain is short and quick and can be over and done with. Suppression is akin to slowly ripping off the band-aid in hopes of spreading out...
Who else feels like this year has gone by so quickly? Each week ahead article, I have been talking about how the election is coming and how volatile times are coming ahead. Now we are neck-deep into election season, with the first one in New Zealand granting Jacinda Ardern and her party a landslide victory, enabling them to govern themselves. All eyes now are on...
The Pound against the US Dollar is currently one of the most exciting pairs to be keeping an eye on, as it is essentially fighting between a rock and a hard place. Currently ranging just under 1.30, both nations have events coming up that will significantly shift the currency pair in either direction.
In the UK, we have Brexit negotiations affecting the Pound...
Coronavirus. Vaccine? Biden. Next President? Brexit. Done in our lifetime? With a lot of uncertainty and volatility in the markets, what party do the markets want?
Equity Markets
The historical sentiment was as follows – A Democrat government is said to increase taxes and increase spending on the welfare, therefore fewer earnings for companies, hence prompting...
Earnings season! As we end another quarter, public companies worldwide will start to open up their books to the market, showing us how well (or not well) they did during the Coronavirus. Here’s your week ahead.
Monday, 12th October – ECB President Speech
With the ECB signaling that they are ramping up measures to meet their mandate of 2% by slashing their already...
We saw a retest of the 0.92 mark in early September when the Swiss Franc against the U.S. Dollar rallied as investors embraced the currency’s safe-haven status. Will we see a further strengthening of the Swiss Franc?
Where did the Swiss Franc get its “Safe Haven” reputation?
In 2011, the Swiss National Bank pegged the Swiss Franc at 1.20 against the Euro as...
AUD/USD has been a strong performer in the currency markets, returning just under 30% since its March lows. We talked about how the Australian dollar was poised for a rally on a market recovery earlier this year.
The market has recovered, and the Australian dollar has recovered with it. This was due to the Australian dollar being mainly a “commodity currency,”...
