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
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...
