Dukascopy_Analyst

Dukascopy_Analyst

"The fall in oil prices, the fall in equity prices, the rise in the euro, the developments in the broader commodities complex -- all of these are driving inflation significantly lower. It is to that that Mario Draghi is responding." - Goldman Sachs (based on Bloomberg) Pair's Outlook The pair fluctuated within the range between two moving averages on Tuesday,...

Dukascopy_Analyst

"The strength in stocks and the dollar is obviously a barrier to gold's move higher. Gold is losing its safe-haven bid." - High Ridge Futures (based on Wall Street Journal) Pair's Outlook Our short-term views with respect to the bullion are broadly unchanged. Since Thursday the metal has been oscillating around 1,100. We are therefore remaining bearish on a...

Dukascopy_Analyst

"It's is true that the market has turned into a risk-on mood, but I don't expect sustainable gains in stocks. That's making the dollar top heavy from where it is now." - Bank of Tokyo-Mitsubishi UFJ (based on Market Watch) Pair's Outlook The Greenback overperformed at the end of the previous week, as the target resistance in face of the 20-day SMA was...

Dukascopy_Analyst

"Markets are concerned about both continued tightening and a U.S. recession. They likely only need to worry about one. Were the Fed to remind the market that it remains data-dependent, it could temporarily alleviate some of the pressure on USD." - Morgan Stanley (based on Reuters) Pair's Outlook Last Friday the Cable retested the down-trend, but ended the day...

Dukascopy_Analyst

"After ECB, we think downside is again compelling, in particular since the ECB so quickly signalled the possibility of renewed easing." - Goldman Sachs (based on Bloomberg) Pair's Outlook Bears approached the market on Friday, following earlier ECB comments about possible policy changes in March. EUR/USD dipped below 55-day SMA and monthly PP to close the...

Dukascopy_Analyst

"With three full weeks until the Chinese New Year, a key buying time for precious metal jewellery and investment products, demand ought to continue to be strong." - Mitsubishi (based on Bullion Vault) Pair's Outlook One more trading session was spent without any bullish or bearish lead. The bullion hovered in a quite wide range, but ended the US session just...

Dukascopy_Analyst

"The performance of equities, particularly Wall Street, dictates the direction of dollar/yen. Equities have developed a relatively strong correlation with crude, and if the fall by the commodity should continue, we could see dollar/yen slip below 116.00 soon." - IG Securities (based on CNBC) Pair's Outlook Even though the USD/JPY's volatility stretched out to...

Dukascopy_Analyst

"I doubt if we are done yet for the pound selloff. I sense there's a good chance for more downside." - Neil Jones, Mizuho Bank Ltd. (based on Bloomberg) Pair's Outlook The Cable erased all daily gains on Tuesday, plunging towards the cluster around 1.4150, as the BoE Governor's remarks ruled out the possibility of an early interest rate hike. Today, however,...

Dukascopy_Analyst

"EUR/USD has tended to rally on ‘risk-off' days and slip on risk-on ones as the Treasury/Bund spread drives the currency and the fall in Treasury yields has supported the euro in recent weeks." - Societe Generale (based on PoundSterlingLive) Pair's Outlook All bearish attempts to send the most traded FX cross down failed on Tuesday. The bulls have eventually...

Dukascopy_Analyst

"It seems unlikely that any particular group would put a floor under the gold price at this stage." - CMC Markets (based on CNBC) Pair's Outlook On Monday the bullion has spent its most tranquil trading session this year. Prices of gold were broadly unchanged near the weekly pivot point at 1,089. The bulls decided to wait for more pronounced fundamental...

Dukascopy_Analyst

"At the heart of the yen's strength are falls in the yuan, which were perceived to be negative on the global economy. The yuan's fall also makes it less likely for the Fed to raise rates and nullify the existing reasons to bet against the yen." - Bank of America Merrill Lynch (based on Reuters) Pair's Outlook On Monday the USD/JPY currency pair managed to...

Dukascopy_Analyst

"Fundamentally, two big issues are weighing on sterling. One is Brexit and the other is that growth numbers have been on the weaker side and that's pushed back BOE hike expectations." - Societe Generale (based on Business Recorder) Pair's Outlook The British currency retreated from intraday gains on Monday, ending the day with a 20-pip loss against the US...

Dukascopy_Analyst

"As the euro zone currently seems to be in the calm eye of the current storm, and Draghi already had problems uniting the ECB for the December decision, we believe the ECB will keep dry the little powder it has left– at least for this week." - ING (based on WBP Online) Pair's Outlook Trading was purely technical during Monday sessions in Asia, Europe and US....

Dukascopy_Analyst

"It will be increasingly difficult for another hike in March, considering that China will continue to be weak." - Phillip Futures (based on CNBC) Pair's Outlook Gold prices have swung between gains and losses since Tuesday, and on Friday they climbed from the 55-day SMA (1,077) to grow up to 1,088 by the end of US session. During the Asian trading on Monday...

Dukascopy_Analyst

"The BOJ will continue to monitor both upside and downside risks to economic and inflation conditions, and make adjustments as appropriate." - Haruhiko Kuroda, BoJ Governor (based on WBP Online) Pair's Outlook The US Dollar ended the previous week lower against the Japanese Yen, as it breached the up-trend and dropped to the lowest in five months. However, in...

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 On Friday the Cable suffered a 150-pip loss, breaching the immediate support and...

Dukascopy_Analyst

"With respect to the risks to the inflation outlook, the most concerning is the possibility that inflation expectations become unanchored to the downside." - William Dudley, New York Fed President (based on Reuters) Pair's Outlook On Friday the most popular FX currency pair violated the two-month trend-line near 1.09, while daily gains attempted to push the...

Dukascopy_Analyst

"The positive move in global equity markets is bearish for gold." - Shandong Gold Group (based on CNBC) Pair's Outlook Bearish sentiment dominated in the market on Thursday, being that gold slumped below 1,075 for the first time in eight trading days. Eventually prices, which started depreciating from the weekly PP at 1,092, were contained by 55-day SMA at the...