The price of gold continues to pullback from a fresh yearly high ($2010), with bitcoin reflecting a similar behavior as it trades within the previous day’s range.
The correlation coefficient may mirror the readings from earlier this year as it turns positive, with the indicator approaching more significant levels as it climbs to +0.76.
Gold Price Outlook
The...
Gold prices have reversed off uptrend resistance ahead of tomorrow's highly anticipated FOMC interest rate decision.
Look for initial support along that parallel on a stretch deeper here.
USD/JPY trades to a fresh monthly low (130.54) while the price of gold registers a fresh yearly high ($2010) amid the ongoing weakness in US Treasury yields.
The inverse relationship between USD/JPY and the price of gold may gain increased attention as the correlation coefficient falls to -0.92 from a less significant reading of -0.58 earlier this month.
...
• Gold and silver have been boosted on haven flows, falling yields
• Fed’s rate decision key risk event for metals
• Higher high above $22 means path of least resistance to the upside
The precious metals rally has taken a pause for breather. But I don’t think they are done just yet. Gold remains on course to potentially hit a new all-time high above $2075, after...
• Metal hits new high for 2023
• Falling yields and raised financial stability concerns boost appetite for low- and zero-yielding assets
• Gold under 6% from all-time high
Gold hit fresh record highs in British pounds and Japanese yen terms on Friday. In the standard US dollar terms, the precious metal has risen to a new high for the year above $1960. It was...
AUD/JPY bounces back from a fresh yearly low (87.36), with the S&P 500 reflecting a similar behavior as the index climbs to a fresh weekly high (3963).
The positive relationship between AUD/JPY and the S&P 500 index may persist as the correlation coefficient holds around +0.80 to mark the highest reading since November 2022.
AUD/JPY Rate Outlook
AUD/JPY...
• Oil prices remain under pressure despite receding banking fears
• Major technical breakdown suggests more losses could be on the way
• Will the OPEC come to the rescue?
After falling by 8% at one point, crude oil prices managed to bounce back from their worst levels on Wednesday along with everything else. The rebound came on the back of news the Swiss...
The price of gold pulls back from a fresh monthly high ($1915) as US Treasury yields recover following the failure of Silicon Valley Bank (SVB).
The correlation coefficient with the 10-Year yield currently stands at -0.81, with bullion more than 4% higher from the start of the year.
Gold Price Outlook
The recent rally in bullion takes shape following the...
• All eyes on US inflation data at 12:30 GMT
• SVB fallout likely to limit dollar’s upside potential
• USD/JPY testing ~134.10 pivotal level
The USD/JPY has bounced back after a sharp three-day sell-off. The recovery is due, above all, to profit taking from oversold levels ahead of US CPI. Unless inflation data comes in much stronger, the UJ could resume lower...
Key levels on the major currency pairs, gold and indices, as well as macro events to watch by our market analyst Fawad Razaqzada. NOT intended for U.S. audience
USD/JPY pulls back from a fresh yearly high (137.91) to largely mirror the weakness in US Treasury yields.
The correlation coefficient with the 10-Year yield currently reads 0.91, with USD/JPY approximately 7% higher from the yearly low (127.23).
Long-Term Outlook
A key reversal took shape earlier this year as USD/JPY bounced back ahead of the May 2022 low...
• BTC/USD falls on Silvergate
• Hawkish Powell has hurt everything include cryptos
• Not much support in sight below $21.4K
Bitcoin was down for the third day and week at the time of writing, pressing against key support around $21400. The momentum and negative sentiment towards the sector strongly suggest a breakdown could be on the cards towards $20K...
• BOC pauses rate hikes
• Fed gets more hawkish again
• US employment sector continues to show strength
The USD/CAD has just hit its highest level since November 2022 after the Bank of Canada kept interest rates unchanged at 4.5% and US JOLTS Job Openings came in ahead of expectations at the same time, providing fresh ammunition for the greenback after Powell’s...
Gold and especially silver plunged on the back of more hawkish comments from the Fed Chair Jerome Powell.
At the time of writing, both metals were near the day's lows. While there is always the possibility of a short-term bounce from oversold levels, gold could be heading to a fresh multi-week low. Silver had already broken its prior low and was trading in the...
This week features some key macro events from Canada. The BoC rate decision on Wednesday and Canadian jobs report on Friday will be the highlights. Earlier today we had a disappointing Ivey survey.
The BoC is not expected to hike rates further after a total of 425 basis points worth of interest rate rises. The central bank signalled at its previous meeting that...
• Nasdaq rebounds but bond markets continue to signal “risk off”
• Stronger US data further boost hawkish Fed bets
• More rate hikes and longer contractionary monetary policy should be bad for stocks
The Nasdaq bounced off its earlier lows along with the global market after the US cash open. But with bond yields breaking further higher, there is a risk we could...
Well, that didn’t last very long, did it?
The GBP/USD has fallen back below 1.20 handle yet again. The Northern Ireland deal optimism has faded rather quickly, while the US dollar has found love following a weaker start to the new month, as Fed's Kashkari weighed in on hawkish rhetoric.
The earlier selling of the dollar as a result of the risk rally was bought...
Key levels on the major currency pairs, gold and indices, as well as macro events to watch by our market analyst Fawad Razaqzada. NOT intended for U.S. audience
