Already on the ascendency, bond yields and the dollar both gained further ground which sent stocks plunging along with gold, copper and Bitcoin. The Nasdaq 100 was down more than 2% at one point earlier, before bouncing off its worst levels at the time of writing.
Ironically, sentiment has taken a hit thanks to the release of strong US economic data. The...
Today’s US data releases didn’t cause a massive reaction, which means the dollar has remained supported – for now. Among the dollar pairs to watch for a potential upside breakout is the USD/CHF.
US GDP was revised unexpectedly lower to 2.7% from 2.9% in the initial estimate, but this was offset by GDP price index, which was revised up to 3.9% from 3.5%, meaning...
• Risk off in equity markets pose threat to positively correlating crypto prices
• Rising bond yields increase opportunity cost of holding zero-yielding assets
• Dollar strength weighs on nearly all dollar-denominated assets
Bitcoin has started to print bearish price action again after being unable to hold its breakout above the August high, around $25K. While it...
The CAD/JPY has pulled back a little after rising for 5 straight weeks, hurt by the sell-off in oil and the slight risk off tone across the financial markets.
However, the trend for the CAD/JPY is still bullish and we favour looking to fade the dips at or near support -- until the charts tell us otherwise.
One such support level is around 99.35ish, which was...
Cryptocurrencies continue to recover nicely, although with the US dollar and bond yields rising on the back of expectations of higher interest rates for longer, it remains to be seen whether the recovery will last long.
Take Bitcoin as an example. It has bounced right where the bulls needed to step in: $21.5K. This level was an important resistance level back in...
The EUR/USD continues to print bearish price action after forming a peak around 1.10. The EUR/USD’s retreat has been aided by a general risk off tone across the markets, which is supporting the dollar and undermining risk-sensitive currency pairs.
On Thursday, the EUR/USD attempted to break out of its recent consolidation range by moving above 1.0780. But that...
Unlike equity markets, precious metals barely got a lift from the Fed Chair Jerome Powell's speech on Tuesday. The US dollar sold off, but this too had minimal impact. It looks like gold investors are unnerved by the falling government bond prices. As a result, bond yields have pushed higher, thus undermining assets that pay no interest - like gold and silver....
Bitcoin was testing a key short-term support area around $22.5K to $22.7K at the time of writing on Tuesday, with investors awaiting direction from Powell’s speech due later in the session. Cryptocurrencies have sold off a little in the last few days thanks to in part to a rebounding US dollar and reduced risk appetite across the financial markets.
So far, the...
The EUR/USD reversed sharply after failing to hold above the 1.10 handle last week, thanks to strong US data and as the ECB meeting failed to provide much support.
The EUR/USD formed a bearish-looking inverted hammer on the weekly time frame, which is a possible bearish reversal pattern, or at least a temp top stick. The bears will now want to see rates hold...
We are heading into a potentially very volatile 24-hour period, with the Fed set to kick things off today, before the BoE and ECB make their policy decisions on Thursday. The EUR/USD and GBP/USD will thus be in focus. The trend for both remains bullish heading into these central bank meetings, but let’s focus on the EUR/USD here.
All eyes on Jay Powell and FOMC
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Much of the attention was on core PCE price index today, providing traders and Fed officials one last look at inflation data before next week’s rate decision by the FOMC. Well, as it turned out, the data was bang in line with the expectations on all fronts, meaning traders had no reason to aggressively buy or sell the dollar. If anything, the dollar weakened a...
The GBP/USD has now had a few days to consolidate recent gains and although it has formed a potential double top pattern at 1.2245ish, this might turn out to be a false signal for the bears.
We haven't seen a proper dollar "buy" signal yet, with the dollar index continuing to break support after support.
While I am not uber bullish on the pound, price action has...
Gold has been moving steadily higher in an upward sloping channel since late November 2022, when price was near 1732. On January 12th, the yellow metal broke above the top trendline of the channel near 1890. The next day, XAU/USD broke above horizontal resistance and the 61.8% Fibonacci retracement level from the highs of March 8th, 2022 to the triple bottom...
Ether has risen to above $1400 this week, to reach its best level since early November. The recovery has coincided with other financial markets. In recent months, investors have been selling the dollar and piling into Chinese and European equities in particular. The ongoing optimism has lifted FTSE to its highest level since Aug 2018, as European indices continue...
The EUR/NZD might not be everyone's cup of tea, but this volatile pair looks like it is about to stage a breakout. We have seen a big upsurge in European stock markets of later while the euro has also outperformed. Take a look at the EUR/CHF and EUR/GBP to get a fell for its underlying strength. The EUR/NZD could be another euro cross about to break...
Ahead of the US CPI data on Thursday, gold has turned lower after reaching a major technical zone between $1878ish to $1900ish, as you can see on the daily chart of the metal.
The lower end was the low created when gold rallied hard into resistance earlier in the year in 2022, which ultimately caused a massive breakdown. Now back to the same level, we are seeing...
