Gold had already created a post-NFP high at the start of this week, but with inflation data coming in much softer than the previous month, this has further fuelled a rally in low- and zero-yielding assets such as gold, nasdaq and yen.
Investors are betting that the Fed will slow down its rate hikes amid signs of slowing economic activity and the potential we have...
The S&P has turned negative on the week ahead of the release of US CPI on Wednesday.
While some profit-taking on the longs accumulated over the past few weeks should not come as surprise, there are plenty of macro concerns to encourage short sellers to step in after the recent recovery. Remember that we are no longer in a bull trend.
The failure to hold above...
Despite that strong US jobs report on Friday, we are seeing renewed weakness in the dollar and bond yields. With the Fed's next meeting still 1.5 months away, traders are easing on their long dollar positions as things could still change dramatically by mid-September. As a result, gold, silver, comdolls, pound, euro, bitcoin, ether, et. all., are breaking higher....
It looks like the U/J has paved the way for another move lower following the release of mixed US data this week, and slumping oil prices.
The hourly chart of the USD/JPY shows the breakdown of former support at 133.40ish, as well as a short-term trend line.
From here, a move down to the next support at 132.40ish looks very likely, and if that breaks then there...
Like most currencies, the British pound has struggled against the US dollar so far this year, with GBP/USD falling by nearly 2000 pips from its mid-January high to its mid-July low. Over the past couple of weeks however, bulls have managed to drive the pair 500 pips off its low to peek above the 50-day MA for the first time since February.
The current bullish...
After creating a nice 3-bar reversal pattern beneath old resistance at $1650, Ether went on to break that resistance level on Thursday of last week, before going into a consolidation phase.
Today, ETH/USD has drifted back to that $1650 level where it is likely to find support, in my view.
Cryptos and other zero- and low-yielding assets like gold, silver,...
The ongoing rally in bonds have been driving everything from FX to metals this week. As bond prices surged higher, their yields fell, boosting the appeal of low- and zero-yielding assets such as the Japanese yen, gold, silver and bitcoin.
Yields have been dropping since the middle of June and this week saw that trend accelerate after the first estimate of the...
Bitcoin has today broken its bearish trend line that was in place since March, triggering some technical buying above it.
Cryptos and other zero-yielding assets have stormed back after the unexpected drop in US GDP increased speculation that the Fed will have to slow down the pace of the hikes and potentially go in reverse in early 2023.
Powell indicated at the...
GBP/JPY, a pair with a well-earned reputation for volatility, has spent the last couple of months seeing every smaller swings. As the chart shows, the pair has been putting in lower highs and higher lows, forming a classic symmetrical triangle pattern, for the past nine weeks since failing to break above its April high.
Coincidentally or not, the pair’s...
The Cable has broken out of a falling wedge pattern despite all the political uncertainty in the UK and ahead of FOMC rate decision.
It is interesting to note that the buyers have evidently stepped in around that long-term 1.20 handle.
This is potentially a major development from a technical view point. But let's see if there's going to be acceptance above...
It seems like only yesterday when oil prices were surging on Russia’s invasion of Ukraine, and analysts were predicting that the commodity could rise to $200 in short order. Since those fearful days in March however, supply has incrementally come into the market and demand has slackened, due in no small part to the high prices themselves.
Looking at the chart of...
Gold managed to bounce sharply off its lows during the ECB press conference, presumably because investors are now convinced that the the central bank will try to supress rising bond yields in troubled Eurozone countries, thus re-starting/continuing with some form of QE just as it has started to hike rates.
It remains to be seen whether the gains for gold will...
We have seen the first significant bullish reversal sign in ages with the S&P breaking its bearish trend line. It still needs to repair a lot of damage, but this is a good sign. It needs to hold above 3920 now in order to keep the bulls happy, otherwise this will be considered a false breakout. Next resistance is seen around 4080, the base of the previous...
The world’s second-largest cryptoasset had a brutal second quarter of the year, with ETH/USD prices falling over 75% from nearly $3600 at the start of April to a low under $900 by mid-June. Between the bankruptcy of so-called CeFi lenders (essentially crypto banks without insurance) like Celsius and Voyager, the implosion of the massive Three Arrows Capital hedge...
After a 30% plunge from its peak in February due largely to the dollar’s big rally and surging interest rates, silver has now reached a major support area.
At around $18.50 per announce, the commodity might have become too cheap. Will we see the return of the bulls as the metal tests THIS key support area?
As per the above chart, the area between $18 to $19 was...
The strength of US dollar caused the EUR/USD break below parity today and sent gold tumbling to $1700. But the metal managed a small bounce off its lows as recession concerns supported Treasurys, causing the yield on the 10-year to remain below 3%.
If gold has any chance of a comeback we now need to see the dollar fall back. Right now, expectations are rising...
The EUR/USD finally hit parity earlier amid fears of a Russian gas shutdown, rising hawkish bets on the Fed and downbeat risk sentiment. The final nail in the euro’s coffin was news of a considerable deterioration in the German economic outlook, according to the closely-watched ZEW survey.
But the historical and psychological significance of 1.0000 means we were...
The USD/MXN is attempting a breakout above 20.50, which will also see rates take out the bearish trend line that has been in place since last year. At the time of writing, it was doing a good job at that. A closing break would pave the way for more gains in this pair, and losses for the Mexican Peso.
Emerging market currencies have been in the spotlight amid the...
