The Australian dollar continues its weekly rally vs. the Japanese yen, up 1.79% in the week. US equity indices finished Wednesday’s trading session with gains between 0.86% and 2.10%. AUD/JPY Technical Outlook: An upside break above 83.00 could pave the way towards 85.00. The AUD/JPY extends its gains during the week rallies for the third
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Gold price is treading water on Wednesday while sitting at the highest levels in roughly two weeks near $1,830. The pullback in the US Treasury yields from two-and-a-half year highs fuelled a drop in the dollar across its main peers, limiting the retreat in gold price. The further upside, however, remains capped by the risk-on
EUR/USD bears stay in control and eyes are on a significant retracement. The daily time frame’s 38.2% ratio is located at 1.1345. As per the prior analysis, EUR/USD: Bulls firming, eyes on M-formation neckline before 1.1410 break, the price remains pressured with a bias to the downside from both the hourly and daily perspectives. EUR/USD prior
Gold price is on the back foot on Tuesday after witnessing back-to-back rallies following the stunning US employment data. The renewed uptick in the US Treasury yields is boosting the demand for the greenback across the board, weighing on the non-yielding gold. Although looming US-Russian tensions over Ukraine and Sino-American tensions could help put a
XAU/USD has recently pushed back above $1820 and, in doing so, moved back above its 21DMA. The bulls will be eyeing a move towards the next key resistance area around $1830. XAU/USD has been taking advantage of the subdued FX markets and a slight pullback in US government bond yields. Spot gold (XAU/USD) prices have
The GBP/USD pair is having a difficult time making a decisive move in either direction early Monday but a drop below 1.3520 could attract sellers, according to FXStreet’s Eren Sengezer. Correction could deepen with a drop below 1.3520 “The Fibonacci 38.2% retracement level of the latest uptrend seems to have formed support at 1.3520. In
The S&P 500 reversed an early session dip to 4450 to trade above 4500, up more nearly 1.0%. Investors were digesting strong earnings from Amazon one day after the Facebook horror show and a strong US jobs report. Trade was choppy towards the start of the US session as investors weighed up the implications of
GBP/JPY pulled back under 156.00 on Friday, though the bullish trend since January remains in play. The pair will be focused on risk appetite, comments from BoE’s Bailey and UK GDP figures next week. Despite a modest rally in the US equity space that would normally have a positive impact on GBP/JPY, the pair pulled
The commodity-linked New Zealand dollar ended Friday’s session with losses of 0.69%. The NZD/JPY retracement from weekly tops could lead to further losses below 76.00. The NZD/JPY slumps for the second time in the week as traders get headed into the weekend. As Wall Street closed and thin liquidity conditions hit the FX market, the
WTI hit fresh seven-year highs at $93.00/barrel in recent trade as the recent melt-up accelerated. WTI is on course to post a seventh successive weekly gain during which time it has rallied over 30%. Oil bulls put their foot on the accelerator on Friday, driving prices to fresh seven-year highs and leaving major crude benchmarks
Markets are expecting too much tightening from the South African Reserve Bank (SARB) warn analysts at CIBC. They see the USD/ZAR at 15.75 by the end of the first quarter and at 16.00 by mid-year. Key Quotes: “The South African Reserve Bank has followed the November hike with a second 25bp move, taking rates
The benchmark 10-year US Treasury bond yield holds above 1.8% after rising 3% on Thursday. Economists at Société Générale expect 10Y UST to reach 1.97% with scope for the 2.13% mark. Break below 1.65% to denote a deeper down move “Neckline at 1.65% should be an important support.” “10Y UST is likely to extend its
What you need to know on Friday, February 4: European currencies soared after central banks’ decisions, putting pressure on the greenback across the FX board. The Bank of England hiked its policy rate by 25 basis points to 0.5% as expected, as all voting members aligned to hike, although 4 out of the 9 participants
The impetus towards pricing in a more abrupt Fed tightening cycle has run its course for now, with 4 ½ to 5 hikes priced in for 2022. The US Dollar Index (DXY) is in a retracement phase for now, but the medium-term bull trend remains intact, economists at Westpac report. Yield support for DXY to
NASDAQ:LCID gained 1.94% during Tuesday’s trading session. Tesla sees yet another recall on its vehicles, this time for its self-driving technology. TopGear.com gives another positive review for the Lucid Air sedan. NASDAQ:LCID climbed higher for the second straight day to start the week but the EV maker failed to recapture the $30 price level. On
EUR/CHF has bounced towards the daily Ichimoku cloud at 1.0440. A break above here is needed to see further gains towards the low of 2020 near 1.0510, economists at Société Générale report. Initial support seen at 1.0325 “The 1.0440 resistance must be crossed for an extended rebound towards the low of 2020 near 1.0510.” “December
What you need to know on Wednesday, February 2: The greenback remained on the backfoot on Tuesday, although losses were limited across the FX board. The EUR/USD pair is ending the day pretty much unchanged in the 1.1240/50 area after dismal EU data put a cap to the shared currency. GBP/USD shrugged off UK’s political
The Reserve Bank of Australia (RBA) ended QE but sounded patient on rate increases. The muted impact on AUD/USD is another indication that rate differentials are a secondary driver for the pair, according to economists at ING who expect the aussie to be capped at the 0.71/72 area. A patient RBA remains a secondary driver