#Analyst Corner

G-10 and EM currencies yield to dollar demandThe recent rise in US yields is responsible for crystallising USD strength, and this appears to have been accentuated by comparatively strong data flow in the US. But next week’s  US Trade Roadshow to China, which includes...
S&P 500 is the biggest index in the world. It has a combined market value of more than $23 trillion. On the other hand, the Dow Jones Industrial Average has a market capitalization of more than $6 trillion while Germany’s DAX has a market...
TD Research discusses the USD outlook and maintains a tactical bullish bias especially EUR and GBP."We suspect that a USD-induced rally is likely to run roughshod through the lower-yielding G10 currencies.This mostly reflects the likes of the EUR, GBP, CHF, though JPY is expected to...
USD/JPY continues to move upwards this week. In Tuesday’s North American session, USD/JPY is trading at 109.14, up 0.40% on the day. On the release front, Japanese inflation data met expectations. The Services Producer Price Index dropped from 0.6% to 0.5%, matching the estimate....
The USD has put on a compelling show overnight as the stars align on the back of higher US Yields and a considerable reduction in the US dollars geopolitical risk premium as an outwardly calmer mood surrounding trade and geopolitical risk takes hold.While its...
USD/JPY has posted strong gains in the Monday session. In North American trade, USD/JPY is trading at 108.57, up 0.86% on the day. On the release front, Japanese Flash Manufacturing PMI inched up to 53.3, just shy of the estimate of 53.4 points. Later...
The Canadian dollar is steady in the Monday session, after posting losing sessions for three straight days. Currently, USD/CAD is trading at 1.2796, up 0.23% on the day. The Canadian dollar remains under pressure and has dropped to a 2-week low. On the release...
The Australian dollar continues to struggle on the global stage as markets have punished it for a weaker than expected employment report. With only 4.9k jobs created in the previous month, compared to the forecasted 20k. This is a drop when you compare it...
In the past month, the EUR/GBP pair fell from 0.8797 to a low of 0.8619. The pair’s fall was attributed to the expectations that the UK inflation would force the BOE to start an accelerated tightening process.However, on Wednesday, things changed after the Office...
TD Research discusses GBP outlook and keeps flagging near-term downside risks, noticing that GBP continues to lag the broader G10, as the soggy CPI data and some negative Brexit headlines have inspired some position squaring."We think this squeeze has some room to go, which reflects...
Equities in Asia received a boost as a result of higher commodity prices and strong U.S. earnings announcements. Energy and mining stocks are leading the gains this morning, as Brent and WTI traded at their highest levels since late 2014. Oil found support after...
Commodities stole the show overnight led by WTI which soared to a three year on the DOE report while industrial metals catapulted higher on the likelihood that an extension of Russian sanctions will hit like a sledgehammer at the heart of the nation’s mining...
The Aussie started the year on a bullish note, gaining by almost 4% against the dollar. It then started falling after weak economic data from Australia dampened the prospects of future rate hikes this year. On the other hand, the dollar has been supported,...
In recent days, the cable has been one of the best performing currency pairs. It has risen from a low of 1.3700 in early March to a high of 1.4400 yesterday. The surge the pair has experienced can be attributed to several factors. First,...
Last week, the global focus among investors was on global trade and emerging tensions in the Middle East. On trade, the rhetoric on trade war calmed after Chinese president promised to reform the country and open up the economy to foreign companies. It was...
EUR/USD has posted slight gains in the Monday session. Currently, the pair is trading at 1.2360, up 0.23% on the day. On the release front, there is only one eurozone event. The German Wholesale Price Index improved to 0.0%, but fell short of the...
Gold has edged higher in the Friday session, after sharp losses in Thursday trade. In the North American session, the spot price for an ounce of gold is $1338.02, up 0.22% on the day. In economic news, the US releases UoM Consumer Sentiment, which is expected...
EUR/USD: Neutral (since 05 Mar 18, 1.2335): Upward pressure dented but another attempt towards 1.2400 is not ruled out.The release of ECB’s minutes yesterday sent EUR tumbling to a low of 1.2298. The ‘key support’ highlighted at 1.2280 in recent updates is still intact...
Friday April 13: Five things the markets are talking aboutCapital markets are to remain sensitive until there are clear signs that tensions are not escalating.Ahead of the U.S open, global equities are adding to this week’s advances as investors take comfort from further signs...
The Australian dollar is coming back into focus with the upcoming Reserve Bank Of Australian Stability Report due out shortly. Many traders will be looking to see the viewpoint of the bank on the Australian economy, especially around household debt, as the Australian housing...
Talking Points:Investors shaking off all those concerns. A more friendly solution could be the outcome. Q2 earning seasons is going to start this week.Investors have been nervous and remained over the edge due to the heightened tensions around the trade war between the US...
This week, the Fed and the European Central Bank (ECB) release minutes of their latest meetings, and China reports import, export (Friday) and inflation data (Tuesday).Last Friday, Fed Chair Powell reaffirmed the central bank’s slow and steady path of raising interest rates. The March...
Danske Research discusses EUR/USD outlook in relation to the recent trade wars developments between the US and China.Two scenarios for the US-China trade conflict. We are now entering a crucial phase in the trade conflict with heightened uncertainty as to what will happen next."1- Our...
It's set to be a big day tomorrow for the Canadian dollar as talks continue to ramp up that NAFTA will all be sorted fairly shortly, and these comments come from both sides for a change. The Canadian Prime Minister seems confident that Canada...
The Aussie continued to climb this morning following the release of the retail sales. For the month of February, the MoM retail sales increased by 0.6%, which was higher than the 0.3% and last month’s 0.2%. This was a surprising increase coming a day...
Volume is picking up pace on a lower price Trump is determined to change the tax structure for AmazonFundamentals Amazon, one of the best-performing stocks of 2017, is battered due to the Trump’s tweets influence. President Trump made clear in his tweet on Saturday...
The dollar is slightly higher against the Japanese Yen following disappointing economic data from the country. Yesterday, we received the Tankan Large Manufacturers and Non-Manufacturers Index which missed the consensus estimates. The Manufacturers Index remained unchanged at 23, a point lower than what analysts...
A softening of NAFTA worries has supported the CAD of late and it could get a Q2 boost if the North American Free Trade Agreement can be renegotiated before a July 1 presidential election in Mexico.Agreeing a NAFTA deal will cement expectations of a...
As we close out quarter and month-end trading, capital market volumes remain subdued, with many investors preferring to wrap up ahead of the Easter holidays.All week, investors have been liquidating their tech stocks, selling some of the biggest winners from a ‘bull’ market that’s...
BTMU Research discusses EUR/USD outlook, and note that price action in the foreign exchange market recently highlights for sure the potential benefits of holding the EUR in these uncertain times in the financial markets.However, BTMU sees the greatest risk of this low euro volatility coming to an...

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