#Analyst Corner

Barclays Research discusses USD/JPY outlook and notes that market positioning suggests further downside risks to USD/JPY."Speculative short JPY positions are still large, according to CFTC data, and retail Japanese investors trading margin FX have bought into the USDJPY decline since early January in their typical contrarian...
Danske Bank Research discusses the USD outlook in light of its price action post yesterday's stronger-than-expected US CPI and thinks that is testament to negative bias on USD in the market with the outlook for significant widening of the US public deficit."The downwards pressure on USD is...
Oil bulls got another thing to cheer about today as Russia and OPEC announced they were looking to draft a long term agreement around an alliance to help control oil markets. This seems like a fantastic opportunity for OPEC, but in reality Russia has...
BTNU Research discusses USD/JPY outlook as the JPY out-performance continues making the currency the best performing G10 currency on a year-to-date basis."So there is certainly a yen specific story here and the shift in risk tolerance and the increased appetite for hedging risk asset exposure...
The Canadian dollar has paused on Thursday, after posting strong gains a day earlier. Currently, USD/CAD is trading at 1.2491, down 0.01% on the day. On the release front, Canada releases ADP Non-farm Employment Change. In the US, there are a host of indicators, highlighted by...
Deutsche Bank Research discusses USD/JPY amid its recent decline and notes that1- While Japanese pension funds, life insurers and other institutional investors have thus far bought on dips from around 110 and below, their buying has been far from aggressive this time.2- Overseas speculators...
GOLD/SILVER HIGHLIGHTS:Gold threatening to break key long-term trend-line Weekly close above will be needed to qualify as a sound breakout Silver has resistance but will follow goldGOLD THREATENING TO BREAK KEY LONG-TERM TREND-LINE Late last month, gold was rejected from the 2013 trend-line in fairly swift...
The Canadian dollar has ticked higher in the Friday session. Currently, the pair is trading at 1.2609, up 0.05% on the day. On the release front, the focus is on Canadian employment indicators, with the release of Employment Change and the unemployment rate. Traders should be...
Talking Points:Canada Employment to Rise 10.0K in January After Three Months of Above-Forecast Prints. Jobless Rate to Uptick from Record-Low of 5.7% to 5.8% per Annum.Trading the News: Canada Employment ChangeCanada is expected to add 10.0K jobs in January, but another above-forecast print may...
NAB Research discusses the reaction to today's BoE policy meeting in which MPC voted to maintain the Bank Rate at 0.50% and the stock of purchased assets financed by the issuance of central bank reserves at £435 billion."The BoE has communicated a step-change in its view...
The Canadian dollar has posted small losses in the Wednesday session. Currently, the pair is trading at 1.2590, up 0.17% on the day. Canada will release Housing Starts, while the US publishes unemployment claims. On Friday, Canada releases key employment data – Employment Change and...
Credit Suisse discusses EUR/USD technical outlook and notes that the bearish short-term price action has seen the pair prodding below 1.2343/23, the 23.6% retracement of the December to January rally, key low and price high."Only a clear break through would establish a top, with support then seen at...
Talking Points:It is a revenge trade, it’s time for the Bears to take their revenge. The short squeeze happened when the VIX index exploded above the 30 mark. No panic buying for safe haven-gold.We all know one thing which is, that markets usually grind...
Having seen such a decent month in January, it has taken six trading days for the gains in US markets this year to disappear, with the S&P500 closing over 4% lower and its worst one day decline since 2011.These declines have been a long...
Following the Fed’s marginally hawkish shift last week, picking up the central bank mantle in the coming days are the Bank of England, Reserve Bank of Australia and the Reserve Bank of New Zealand. Bank of England Is the Bank of England mulling another interest rate...
Barclays Research discusses the reaction to today's FOMC statement for the January policy meeting in which the Fed maintained the target range for the federal funds rate at 1.25-1.50 per cent."We read the overall tone of the statement as pointing to a rate hike in March...The other...
The FOMC statement did not have the desired effect for the market today as it was rather flat for the bulls and the bears. While the FED was positive overall about the economy and that rates were likely to lift in the future, it...
The Canadian dollar is higher on Wednesday after the economy accelerated its growth in November. Canadian GDP is posted monthly and showed a gain of 0.4 percent in November. The Canadian economy started 2017 with a bang which led the Bank of Canada (BoC)...
Tuesday’s session was all about the cross-asset selling of equities, oil, and bonds as bear “steepener” returned in vogue. The USD dollar remained tethered to a yo-yo string putting in a very mixed performance.Stocks and BondsStock markets are being pulverised recording their most significant...
EUR/USD inches lower mainly due surging US rates & depth of spec longs EUR/USD yesterday extended the correction to 1.2336 from 1.2538 Jan 25 38.2% retrace Jan rally yet to be reached at 1.2300 38.2% Nov-Jan rise still way off at 1.2162 Stocks...
There has been a pause for thought in the bearish dollar trend after an enigmatic spike in US Treasury yields yesterday sent dollar bears heading for shelter while leaving a sea of red in their wake across FX markets.The higher US ten-year yield has...
Credit Agricole CIB Research discusses EUR/CHF outlook and notes the in the very short-term, elevated CHF short positioning may well make the case for further currency upside."As such, in our view, better levels will still be reached if considering new EUR/CHF longs.As no data or SNB...
Last week was good for the British pound, and the cable is still near the few-month highs as we are heading into week 4 of January. It looks like the market has finally abandoned all concerns with the Brexit negotiations, allowing the politicians to...
TD Research discusses USD/CAD outlook and thinks that CAD is set to remain the laggard in the G10. "For one thing, it still screens rich on our HFFV estimates, leaving it vulnerable to any drawdown in the majors. We prefer to maintain a negative bias towards CAD given...
Danske Research discusses the EUR outlook in light of revising higher its EUR yield and rates forecast."We have now pencilled in somewhat higher 10Y EUR and USD rates and yields (Germany) on a 12M horizon. We now expect the 10Y EUR swap rate to...
NAB Technical Strategy Research discusses Gold technical outlook and notes that the Weekly MACD and DMI have produced prominent bullish triggers in December / January and confirm a sustainable MT uptrend bias.Trend line dating back to 2013 highlights interim resistance at 1350/1355.A monthly close above...
Talking Points:The dollar is weak against the major G10 currencies Traders will be returning to work after a long weekend breakThe dominant theme among dollar traders is skewed to the downside and this was the major melody last year. It appears that traders...
Overnight we’ve seen the US dollar try and make a fresh move lower which appears to have been rebuffed for now.The failure to crack $90 on the US dollar index could prompt a short squeeze, which in turn could well prompt a top in...
UK Inflation Data Falls for the First Time in Six MonthsHeadline UK inflation rose to 0.4% from 0.3% on a monthly basis as widely expected, but annual inflation fell to a six-month low of 3.0% from 3.1% in November. Core annual UK inflation – headline...
Barclays Research discusses the USD outlook and notes that the renewed expectations of core central bank policy normalization and concerns about US policy priorities brought back USD softness after a short break early in the year, especially against JPY and EUR."The 19 January government...

Latest

Popular

Gold Commodity

Gold Technical Analysis

Gold futures are down by almost a percentage point. The decline in the dollar is associated with rising yields in the U.S treasuries and...
Gold Commodity

Gold Rally Could Grow Legs on Long-term Trend-line Break, Silver to Follow

GOLD/SILVER HIGHLIGHTS:Gold threatening to break key long-term trend-line Weekly close above will be needed to qualify as a sound breakout Silver has resistance but will...
US Dollar Currency

Dollar trapped in negative sentiment; European stocks set for weekly gains

Here are the latest developments in global markets:FOREX: Despite rising US Treasury yields, the dollar was under pressure against its major peers, with traders attributing...