#Analyst Corner

Bank of America Merrill Lynch Research dissects time zone analysis to identify dominant geographic regions for all USD, EUR and JPY G10 pairs."When in Rome, do as the Romans do: follow the dominant local trend...US locals are bullish USD and bearish CAD. UK locals...
The USD has bounced higher today on the back of comments from Governor Powell whose view on monetary policy remains the same with lifting rates steadily overtime and keeping inflation ticking along as well. So for the US economy this has been a positive...
Economy faces years of strong jobs growth in a low inflation environment The dollar continued to push higher in Asian trading, building on gains made in the previous session after Fed Chairman Powell’s described the US economy as in a good place during his semi-annual...
That was quick and sudden  reminding us just how quickly things can get right out of hand. On the back of Secretary of State Mike Pompeo mincing few words by branding China’s openness and globalisation as a joke, President Trump has asked the USTR to...
Bank of America Merrill Lynch Research discusses EUR/USD outlook and maintains a sell-on-rallies strategy."We remain bearish EURUSD and would sell any rallies. Looking ahead, we expect relative data, trade policy and developments in Italy to be the main EURUSD drivers.The ECB has effectively took itself...
Instead of a major roadblock, the ECB was a significant catalyst for the US dollar. And it is tough to argue against the intensity of the EUR downside move as the ECB didn’t just disappoint to the dovish side they were overtly dovish pushing...
Equity MarketsUS equity markets continue to defy gravity and extending the recent winning streak to four straight sessions. It was all about the financials as a series of coordinated hawkish comments from ECB members,  that the end of QE will be top of the...
Danske Research discusses EUR/USD outlook and maintains a tactical bearish bias, expecting the pair to retest its last week's low around 1.1510."We still think the bottom is ahead in the cross on USD backing from the current carry and cyclical environment for now. However, EUR/USD longs...
CIBC Research discusses USD/JPY outlook and adopts a structural bearish bias targeting the cross at 104 by year-end.With USDJPY well linked to government bond spreads in the last two years, the yen should be a beneficiary of any upward pressure on JGBs emanating from a less-dovish tone...
Bitcoin showed further signs of trouble on Thursday after a strong break below the 50-week moving average. The notoriously volatile market enjoyed a 50% bounce from the April lows of $6.5k, stopping short of $10k. However, the recent bull move has been short-lived as...
SEB Research discusses its reaction to today's FOMC minutes from the May policy meeting."The minutes confirm that the Fed has become more confident that inflation will remain close to or above target but provide no clear indication that the Fed is about to step up...
It was a remarkably active session overnight as seemingly one by one riskier asset classes and curious investors followed the Turkish Lira down the rabbit hole in classic risk-off fashion as the markets are getting increasinly consumed by geopolitical risks again.  Fasten up as...
Barclays Research discusses EUR/USD outlook in light of the latest Italian political developments."The Italian political situation and its effect on BTPs and other EA peripheral bond markets will likely be the single most important driver for the EUR this week.While our rates strategists do not...
A busy start to the session dealing with yet another mini TRY flash crash as the bad Lira news continues to compound. Otherwise, global Forex and fixed income markets remain in neutral  overnight and predictably focused on the upcoming FOMC minutesThe Turkish Lira meltdown....
Gold has posted considerable losses in the Tuesday session. In North American trade, the spot price for an ounce of gold is $1309.34, down 0.30% on the day. On the release front, JOLTS Jobs Openings jumped to 6.55 million, crushing the estimate of 6.02...
Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and notes that the net euro long hadn't corrected enough to give a committed euro dip-buyer any encouragement at all."Nor does the Bund market. EUR/USD has been tracking Bunds more than relative yields or relative short...
Whilst Wall Street closed higher on the day, the real action was in the oil markets. Oil extended gains from the European session into the start of the US session, easing back only after Trump announced a decision will be given tomorrow at 2pm...
The unprecedented turnaround of fortunes for the US Dollar is continuing to leave a lasting impression on the FX markets, following the Dollar Index’s rise to above 92.80 on Monday, a new milestone for 2018. The emerging market currencies are now playing catch up...
The US dollar is lower against major pairs on Thursday, but still holds considerable gains in weekly measures. The Fed held rates unchanged on Wednesday and its statement hinted at gradual tightening. The usually steady U.S. non farm payrolls (NFP) report has been inconsistent...
AUD/USD: Bearish (02 May 18, 0.7485): Target a move to 0.7410.We just shifted to a bearish stance yesterday (02 May, spot at 0.7485) and there is no change to the view. The ‘target’ remains unchanged at 0.7410 even though 0.7440 is quite a strong shorter-term...
BTMU Research discusses GBP/USD outlook in light of changing its BoE rate call to no hike in May."That change in view on the back of the GDP data is already now close to the consensus. Market probability of a rate hike has gone from 90%...
Holiday thinned trading conditions in Singapore and the rest of Asia today suggests liquidity will be tight. However, with headline riks evolving,  traders will remain ever so vigilant.Global equity sentiment remains a bit shaky as concerns over rising commodity prices and higher interest rates...
EUR/USD has started the week with small losses. In the Monday session, the pair is trading at 1.2118, down 0.10% on the day. On the release front, German Retail Sales declined 0.6%, well off the estimate of 0.8%. Later in the day, Germany releases...
The British pound has posted sharp losses in the Friday session. Currently, GBP/USD is trading at 1.3767, down 1.08% on the day. On the release front, there are key events on both sides of the pond. British Preliminary GDP for the first quarter posted...
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...

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