Gold is up nearly 3% in the past couple of days as President Donald Trump’s hospitalization due to him contracting the Coronavirus shook the markets. Like many times this year, Gold has been an anchor on volatility, providing stability in a portfolio when markets dive. However, what about the factors that are usually discussed to propel Gold past its previous...
ust as you think things couldn’t get weirder – arguably the most powerful man in the world, President Donald Trump, and the First Lady contracted the Coronavirus. This is after their aide, Hope Hicks, was stated to have contracted the Coronavirus the day before their announcement. This week ahead could be interesting.
There have been conflicting accounts to...
The cable experienced wild swings as Brexit, and its economy weighed slammed traders and investors into a volatile session.
GBP/USD fluctuated from the lower bound of 1.28 to the upper bound of 1.29 in a matter of hours as the market took in information regarding Brexit and the UK’s GDP figures.
The Internal Market Bill passed by the UK government to override a...
The largest oil consumers are both the United States and European Union – making up around 34% of the worldwide 100 Million demand (before the Coronavirus). Both Countries / Continents have seen daily increases in their Coronavirus case count. The United States currently has 7.1m Coronavirus cases, while Europe has around 5 million cases. Coincidentally (or not) –...
A revival of the Dollar? As we get closer to the election, investors and traders can see one thing in the future – uncertainty. Therefore, we can see market participants start preparing for the unknown.
As debates and the election coming up, statements will be said, and policies will be announced to sway the markets significantly. Over the past five days, the...
It is officially five weeks out until the United States Election. Expect an increase in volatility in the markets as we get closer to the official election dates. It is interesting to note that New Zealand’s elections will be held two weeks after the US elections – throwing an extra spanner in the works. Here is your week ahead.
Dates are in NZDT.
Wednesday,...
The Euro against the US Dollar is approaching 1.165 – a historically busy support/resistance area.
Traders and investors in the past couple of months have seen an 11% appreciation in the Euro. From a country’s viewpoint, an appreciating currency is seen as bad as it makes the countries (in the case, the continents’) exports more expensive for other countries....
Similarly to the United States, New Zealand has its elections coming up in 25 days. What's the future of the New Zealand dollar once a party is enacted?
Generally speaking, there are two "main" parties in New Zealand – national and Labour. From a thousand miles away, National vs. Labour would be compared to Democrats vs. Republicans.
National can be categorized...
Silver has had a legendary run this year, is heavily correlated with Gold. However, that was only in regards to the movement.
Before September, Silver has outperformed Gold year-to-date, and even from its March lows. Year to date, it has returned just under 50%. Meanwhile, Gold has returned 27%. From March, Silver has returned 68%, while Gold only returned 24%...
Week ahead! Speeches, Interest Rates and PMI’s
Hello traders! This week ahead, we have many events that directly affect significant currencies such as the GBP, USD, the NZD, and the Euro. Trades should be aware of these critical events not to be whipsawed by the market. Here is your week ahead
Monday, 21st September – UK’s Inflation Report Hearings
UK...
The pound against the US Dollar has returned 11.4% since its March lows. As well all know, a lot has happened since March. But what has not come to fruition is the Brexit talks. As the transition deadline for the UK to leave the EU approaches, Brexit talks have suddenly come back into the spotlight. However, Prime Minister Boris Johnson has thrown a wrench in the...
Much of the excitement that fueled the rise in the NASDAQ and many equity markets has fizzled out on a recent downbeat and neutral news on the Coronavirus development.
From its March lows, the NASDAQ 100 has returned 83.26% from its peak at the start of September. This legendary market rally came from Jerome Powell and the Federal reserve’s loosening monetary...
Oil has been ranging in a consolidation zone from its recovery from its March lows. It has been up and down based on the fundamental news of the day. However, is Oil the value play of the year, or is it a value trap?
Whats a value play/trap?
A value play is usually associated with stocks trading at a lower price than what the company’s future performance may...
After two official terms and nine years in office, Shinzo Abe is stepping down as Prime Minister of Japan. He is replaced by 71-year-old Yoshihide Suga, formally the Chief Cabinet Secretary but informally, Abe’s right-hand man. The question becomes, will Suga try and reinvigorate Japan’s Economy using new methods, or will it be another term of Abenomics, without...
There was this substantial rise in Gold in July. Touted as the “safe haven,” many reasons were stated as the reasons for Gold’s rise. Inflation, currency debasement, risk-off, etc.
However, I believe we saw three different types of correlations in Gold this year. The first one was the “risk-off” trade. Investors and traders buy up Gold during the equity...
The stock of the week continues the luxury brand trend of last week’s stock, Farfetch. While that company specializes in delivering luxury goods directly to customers, Tiffany specializes in the complete opposite.
Tiffany & Co’s Business:
Tiffany and Co, an American Luxury Retailer, founded by Charles Lewis Tiffany in 1837, have opulent buildings across the...
The ECB decided to leave interest rates unchanged, with interest rates staying at negative 0.5%.
The ECB stated that it is closely monitoring the recent strengthening in the Euro, citing inflation issues in the medium term Christine Lagarde noted that it would “Carefully assess incoming information including developments in the exchange rate, with regards to its...
Markets sold off as risk-off sentiment continue to seep into investors and traders’ heads.
The largest move downward was in the Oil markets, where Brent Crude and WTI were down 7 and 8% respectively, fearing that the demand recovery as stalled. The Summer Holiday in the United States, primarily associated with peak demand in Oil, currently marked its close on the...
