Dukascopy_Analyst

Dukascopy_Analyst

"The safe haven appeal of the yen is likely to keep it in demand in the week ahead as global investor risk sentiment is likely to remain fragile." - Bank of Tokyo-Mitsubishi UFJ (based on WBP Online) Pair's Outlook A strong reading of yesterday's US Import Prices helped the USD/JPY pair to preserve the up-trend and stabilise at the highest level this week. The...

Dukascopy_Analyst

"In the current environment however, with investors becoming increasingly worried about the impact of the slowdown in China, concerns over the UK economy and the risk of a 'Brexit' look likely to continue to haunt sterling." - HiFX (based on Business Recorder) Pair's Outlook The Sterling's recent rally against the US Dollar was reduced to zero, with the weekly...

Dukascopy_Analyst

"The risk-off environment has a tendency to drive euro higher." - Bank of Montreal (based on Bloomberg) Pair's Outlook Neither the bulls nor bears have again gained any leadership in terms of driving the EUR/USD currency pair. It traded in a wide range between 1.0945 and 1.0830 yesterday, but nobody managed to close the session any near both of these levels....

Dukascopy_Analyst

"The market is expecting, perhaps in March the Fed will have its second interest rate hike. It will lead to a very strong US dollar, so gold prices are likely to face pressure." - Shandong Gold Group (based on CNBC) Pair's Outlook A continuous move away from fixed income and safe-haven assets is putting more pressure on gold prices. They slid down on Tuesday,...

Dukascopy_Analyst

"It's a kind of familiar picture with the equities starting the day positively but then reversing gains as oil prices fell to a new low, so that's what dollar yen is really reacting to." - BNP Paribas (based on Bloomberg) Pair's Outlook The monthly S2 was able to keep the USD/JPY from falling deeper yesterday, despite volatility reaching Tuesday's opening...

Dukascopy_Analyst

"The sharp risk-off environment has been playing a heightened role in the latest bout of sterling weakness. The UK's large current account deficit means that sterling is one of the most vulnerable major currencies to any deterioration in risk sentiment." - ING (based on Reuters) Pair's Outlook The Sterling dropped to a fresh five-year low against the Buck on...

Dukascopy_Analyst

"China worries calmed down, pushing up the dollar higher. Excessive worries have receded. If crude oil prices regain much ground, the dollar may rise a bit more. But such a gain is still uncertain and investors still remain nervous." - Tokyo Forex & Ueda Harlow (based on Market Watch) Pair's Outlook Yesterday neither bulls nor bears managed to gain control...

Dukascopy_Analyst

"For gold, I'm looking for a bearish case at $950 an ounce, driven by higher Fed fund rate to 1.25-1.5 percent and overall dollar strength." - OCBC Bank (based on CNBC) Pair's Outlook Bearish strength pushed the bullion substantially lower during the first trading session of this week. Recovering equity markets in Asia and risk-seeking sentiment resulted in...

Dukascopy_Analyst

"I have a mildly optimistic outlook for 2016. Mildly, not wildly. I expect the broad economy to continue to expand at a moderate pace. To venture an estimate - between 2% and 2.5%, possibly a little higher." - Dennis Lockhart, Atlanta Fed President (based on WBP Online) Pair's Outlook The US Dollar retained some if its post-NFP strength and managed to...

Dukascopy_Analyst

"The pound is one of those currencies within the majors, which is more vulnerable to the deterioration in global investor risk sentiment. This is temporary relief." - Bank of Tokyo-Mitsubishi (based on Bloomberg) Pair's Outlook The British currency failed to post significant gains on Monday, as supply at 1.4567 was solid, allowing the Cable to surge only 14...

Dukascopy_Analyst

"We have to pay attention to underlying economic conditions and we certainly have to watch what's going on with financial conditions." - Robert Kaplan, Dallas Fed President (based on Reuters) Pair's Outlook EUR/USD traded in a limited range on Monday amid lack of fundamental drivers throughout the day. By the end of American session the pair dipped down to the...

Dukascopy_Analyst

"We have some supportive factors in the market such as Saudi Arabia-Iran tensions, devaluation of yuan which have prompted safe have appeal of gold." - Lee Cheong Gold Dealers Ltd (based on CNBC) Pair's Outlook Last Friday the precious metal formed a long lower shadow candlestick, meaning the bears failed to hold to daily gains. Initially they were managing to...

Dukascopy_Analyst

"This means that the Fed continues to be on track for rate increases." - ABN Amro Bank NV (based on Bloomberg) Pair's Outlook Despite a strong reading of the US Non-Farm Payrolls on Friday, the USD/JPY was unable to maintain trade in the green zone. The pair retreated from intraday gains and breached the key support, breaking the three-year up-trend, as the...

Dukascopy_Analyst

"Wage growth is falling... (and) the broad sterling trade-weighted index that the Bank tracks remains close to cycle highs even as GBP/USD heads lower. For these reasons, we remain comfortable with being short GBP/USD even if the BoE turns hawkish again." - Deutsche Bank (based on Reuters) Pair's Outlook On Friday the GBP/USD currency pair pierced the 2015...

Dukascopy_Analyst

"If volatility is sustained over a period of time, it's likely to decrease the odds of further Fed rate hikes, at least at the pace that the market's pricing in, and that's obviously negative for the dollar." - Commonwealth Foreign Exchange Inc. (based on Bloomberg) Pair's Outlook EUR/USD created a classical long lower shadow candlestick during the session on...

Dukascopy_Analyst

"Gold continued to climb with rising safe-haven demand amid the rebound in market volatility. Rising equities losses and surprising devaluation of the yuan are painting a positive picture for gold." - ANZ (based on CNBC) Pair's Outlook A rally for the bullion is taking place for a fourth consecutive day on Thursday. Yesterday we saw the sharpest climb in a month,...

Dukascopy_Analyst

"After JPY short positions are unwound, USD/JPY depreciation should slow. In addition, mid-term flows remain large net JPY selling in 2016, in our view. From a supply-demand perspective, we see only limited downside risks for USD/JPY from the current level." - Nomura (based on FXStreet) Pair's Outlook Even a positive reading of the employment data Tuesday was...

Dukascopy_Analyst

"More and more, we see a certain level of discomfort among the Fed regarding the strength of the dollar." - Toronto-Dominion Bank (based on Bloomberg) Pair's Outlook A much stronger-than-anticipated ADP data on Tuesday contributed to the Cable's weakness that day, pushing the pair to retest the 1.46 level. Nonetheless, another decline is likely to be...