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On my way back, I passed a canal that separates two major parts of the city.
The German election will be bearish for the European bond market
The German election will be bearish for European sovereigns regardless of the outcome. We expect Bund yields to break above 0% under all scenarios except one. An R2G coalition would be the most bearish scenario for bonds as the new government will substantially increase fiscal spending and implement policies to...
FX Update: Bar is high for meaningful FOMC surprise with other irons in the fire.
With expectations virtually nil for strong signals from the Fed at the FOMC meeting tonight, the meeting could well surprise expectations, which have perhaps shifted slightly to the hawkish side on the potential for the Fed to move sooner rather than later on the taper. But the next steps from...
Warning shot from FedEx as margin pressure intensifies
FedEx's earnings show increased margin pressure which become a hot topic in the upcoming Q3 earnings season.As we describe in our Market Quick Take this morning, equities are rebounding on good news from PBOC and Evergrande which for now are stabilizing the situation around the Chinese housing market. But today’s...
USDJPY is approaching pivot, potential for bounce | 22 Sept 2021
USDJPY is approaching our entry at 109.705 in line with our 61.8% Fibonacci retracement and 61.8% Fibonacci extension and EMA 55. Price is expected to experience a pullback at the pivot towards our take profit at 109.116 in line with our graphical swing low support. Our bearish bias is further...
USDCHF is at pivot, potential for a bounce!
Price is approaching pivot level of 0.92445, in-line with 38.2% Fibonacci retracement and 61.8% Fibonacci extension . We could potentially expect the price to bounce towards resistance at 0.93260, in-line with 100% Fibonacci retracement and swing high resistance. Alternatively, price could drop to support at 0.91910, in-line with 61.8% Fibonacci...
EURUSD reacting below pivot, potential for further downside
Price is reacting below pivot level at 1.17490, in-line with 23.6% Fibonacci retracement and 61.8% Fibonacci extension and 20EMA. Price could potentially drop to support at 1.16645, in-line with 100% Fibonacci retracement , 161.8% Fibonacci extension and swing low support. RSI is also at descending trendline resistance where previous drops...
EURJPY short-term bullish momentum | 22nd Sep 2021
Price is holding below the descending trendline resistance, however we can expect that price would bounce up towards the trend line resistance. Price is expected to bounce up from the pivot level in line with 100% Fibonacci Projection towards the take profit level in line with 61.8% Fibonacci projection and...
USDCAD is at a pivot, potential for dip | 22 Sept 2022
Price holding above the ascending support trendline, signifying a bullish momentum. We can expect price to be pushing down from the pivot level in line with 38.2% and 38.2% Fibonacci retracement towards the take profit level in line with 78.6% Fibonacci retracement and ascending trendline. Our short-term bearish bias is...