Japanese buyers have come to rescue falling US Treasuries. However, the more significant test will come today as the Treasury will sell 30-year bonds following the US CPI readings. With inflation expected to close the year above 4% and GDP expected around 5.9%, it's unlikely that long-term yields will drop...
US CPI, FOMC Minutes and Chinese PPI on tap
Today we look at the latest choppy session and the important day ahead, with the September US CPI print on tap later today, followed by the FOMC minutes as the Fed is set to taper at its next meeting, and then the important Chinese PPI up in Asia, an important...
Market Quick Take – October 13, 2021
Equities traded choppily yesterday, neither managing to sustain a rally nor close anywhere near the session lows, though US equities did close marginally lower yesterday and sideways overnight in a fairly downbeat Asian session. Today, we look forward to a US September CPI release and the FOMC minutes, which could...
My Favorite Trade for a Volatile Oil Market
Supply is unlikely to expand significantly as OPEC has kept a lid on production and new regulations limit drilling in the U.S. Although the path of oil prices is uncertain, the future direction of prices is likely to be volatile… As I’ve written before, options can also be used to...
AUDUSD potential trend reversal! | 12th Oct 2021
AUDUSD is on a bearish momentum. We spot a potential entry at 0.74028 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension towards our Take Profit at 0.72241 in line with 78.6% Fibonacci retracement and graphical swing low. Technical indicators are showing bearish momentum. Any opinions, news, research, analyses,...
CADJPY potential for short term pullback! | 12 Oct
CADJPY is on a bullish momentum. We see potential entry at 90.959 in line with 200% and 127.2% Fibonacci extension and a potential dip towards our Take Profit at 89.963 in line with 23.6% Fibonacci retracement . Stochastics are at a level where previous pullbacks happened. Any opinions, news, research,...
FX Update: Commodity FX all the rage. Tension in sterling outlook.
Markets tried to put back on the relief rally yesterday, but the weight of concerns in the background forced a retreat as US equities closed on the lows of the day and sentiment continued to sour in the Asian session even if Europe is trying to save the day. One...
This market still looks very complacent
Today we continue to outline our laundry list of concerns as the energy crunch continues its vice grip and as bonds are providing zero offsetting returns when equities come under pressure, and yet the VIX forward curve suggests ongoing complacency. We also look at yields and yield curves, which continue...
Market Quick Take – October 12, 2021
A weak session around the world for equities as an attempt yesterday in the US to rally back toward recent highs was beaten back and the major averages closed sharply lower for the second straight session, with the mood staying downbeat in the Asian session overnight. Crude oil prices posted...
It’s time for redistribution of wealth
Over the past twenty years, real compensation has lagged behind labor productivity growth in most developed countries. But with more persistent inflationary pressures and calls to fight inequality, several governments have embraced redistribution of wealth as a top policy priority. This is the case of Japan and the United Kingdom,...