Gold's recovery following the early August collapse is showing signs of running out of steam after the price once again failed to penetrate an area of resistance towards $1835. With muted buying interest from money managers due to lack of momentum and diversification demand, the recent buying has instead been...
The bond bear market is back. It’s time to short Bunds.
As consensus expects a dovish tapering from the European Central Bank on Thursday, it makes sense to begin shorting bonds ahead of this event. Even if a dovish tapering announcement might not spur massive volatility, we are entering a fragile period for bonds. The selloff is poised to intensify with...
ECB to beat Fed to taper? RBA dovish twist sets up AUD for new downside.
EURUSD remains near the top of the range, possibly on the anticipation that the ECB is set to beat the Fed to the announcement of an asset purchase taper. Meanwhile, long US treasury yields are nearing an important trigger level that could trigger more volatility than we have seen in...
ECB to lead Fed? Possible mischief if US 10-year yields break higher.
Today we delve into whether the intense new enthusiasm for Japanese equities is warranted, especially in relative valuation terms. Elsewhere, we look at whether the ECB is set to actually lead the Fed in tapering asset purchases and the key trigger levels for US 10-year yields, which are perhaps the...
Market Quick Take – September 7, 2021
Japanese equities vaulted higher still to add to recent steep gains, although the 30,000 area in the Nikkei 225 appears to be providing resistance as it did earlier this year. In China, the broader market was stable on strong trade data for August, although high yield credit is under significant...
Is Suga’s resignation another false start for Japanese equities?
Suga's resignation as Japan's Prime Minster has sparked a rally in Japanese equities. But is this the start of a Japanese equity performance following decades of disappointing returns?Nikkei 225 futures are up 12.2% in only 11 trading sessions with the latest push higher coming on the back of Prime Minister...
Crypto Weekly: Mixed signals
Reports from major crypto analysts have different projections of crypto, sending contrasting signals to the market. The SEC also had a week of contrasting signals as the agency both addressed positive and negative aspects. In another corner of the crypto space, four countries are collaborating to make tests on a...
FX Update: ECB meeting and US Treasury yields in focus this week.
Central bank meetings galore this week, with the ECB on Thursday the chief one to watch in terms of the ability to impact the market. Elsewhere, whether volatility can return to this market in any significant way may be up to the US treasury market, which saw a curious reaction...
Fixed income market: the week ahead
The reaction of US Treasury yields to Friday's jobs numbers confirms that inflation is more important than jobs for the bond market. That's why this week's focus will be on the Beige Book, as it could give better insight on whether inflation is transitory or not. Yet, we expect volatility...
NZDUSD has potential for short term further upside | 3 Sept
Price is approaching pivot level at 0.71430 which is in line with 127.2% Fibonacci retracement level. Price may potentially bounces further to resistance at 0.72061 which is in-line with 161.8% Fibonacci retracement level. Alternatively, price may drop to support at 0.70572 which is in line with 0% Fibonacci retracement ....