FX

The Bank of Japan (BOJ) must conduct a genuine review that takes a harder look at the rising side-effects of prolonged easing, former central bank Deputy Governor Hirohide Yamaguchi told Reuters. Key quotes “The costs of the bank’s stimulus programme have become too large to mitigate in the review in March.” “It’s unlikely the BOJ

Following his virtual chit-chat on trade and climate with US President Joe Biden, Canadian Prime Minister (PM) Justin Trudeau struck statements suggesting a fresh start to the US-Canada trade relations. After saying, “It’s great to see you,” the Canadian leader added Canada is “really excited” to be working with the US again. In a response

CME Group’s preliminary readings for crude oil future markets noted traders partially reversed Friday’s pullback and rose by around 5.6K contracts at the beginning of the week. Volume, instead, went up sharply by around 472.1K contracts after two daily builds in a row. WTI on its way to $65.00 and above The rally in crude

AUD/USD bulls catch a breather near the highest since February 2018. Statements from China, likely US-Iran tussle and Fitch’s negative outlook on Aussie credit rating failed to supersede virus/vaccine, stimulus optimism. Light calendar emphasizes risk catalysts for fresh direction. AUD/USD wavers around 0.7920, stepping back from a fresh three-year high a few minutes back, during

The EUR/GBP pair is heading to the 2016-2021 uptrend at 0.8591. A break below here would expose the May 2019 low at 0.8465, Team Head FICC Technical Analysis Research at Commerzbank, informs.  Key quotes “EUR/GBP resumed its down move last week and starts this week with attention on the 2016-2021 uptrend at 0.8591, we look

What you need to know on Monday, February 22:  The greenback weakened against most of its major rivals, with AUD and GBP soaring to fresh multi-year highs. The American currency edged lower despite US Treasury yields resumed their advances and finished the week at their highest in a year. Wall Street closed mixed on Friday,

Morgan Stanley’s Chief Cross-Asset Strategist Andrew Sheets predicts gold to fall further from the current levels even though inflation is set to rise in 2021. Key quotes (via Kitco News) “Morgan Stanley’s economists forecast US inflation to rise a little over 2% over the next two years. So, this is hardly the runaway type of scenario for inflation

The S&P 500 and Nasdaq 100 both posted their fourth straight day of losses on Friday. But the former remains supported above 3900 as the macro backdrop remains positive. Rising US bond yields have been a cause for concern this week, however, and this was evident on Friday. The S&P 500 ended the session with modest

Weekly closing above Nov 30 low offers a ray of hope for XAU/USD. The bearish bias remains intact until gold stays below 21-DMA. The recovery mode could extend into Asia’s weekly opening. Gold (XAU/USD) staged an impressive bounce Friday, having hit the lowest in seven months at $1761 in the Asian trades. Despite the corrective pullback,

WTI is on course for a second day of losses and is back to the $59.00 level. The fact that Texas is bringing production back online and talk of US/Iran talks weighed on oil at the end of the week. Front-month futures contracts for the American benchmark for sweet light crude, West Texas Intermediary (WTI),

The Japanese Cabinet Office cut its assessment on the overall economy in February for the first time since April 2020, thanks to the prolonged state of emergency in the country to combat the coronavirus resurgence. Key quotes “Economy showing some weakness though improving amid severe conditions due to COVID-19.” “Japan cuts view on consumer spending

AUD/USD is a little higher on the day, following a choppy session. AUD traders will be on notice for the release of flash PMI data and preliminary retails sales. AUD/USD saw some selling pressure in the first half of the US trading session, dropping from mid-European session highs of only about 10 pips away from

USD/CNH is forecast to advance further once 6.4500 is cleared, noted FX Strategists at UOB Group. Key Quotes 24-hour view: “We highlighted yesterday that ‘there is room USD to test the strong resistance at 6.4400’. We added, a sustained advance above this level is unlikely. The subsequent advance exceeded our expectation as USD popped to

What you need to know on Thursday, February 18: Demand for the greenback persisted, backed by higher US Treasury yields, as those on long-term government debt reached fresh one-year highs. Upbeat US Retail Sales, probably as a result of stimulus checks, further supported the American currency. The FOMC published the Minutes of their latest meeting,

FX Strategists at UOB Group noted USD/CNH could bounce off recent lows and re-test the 6.4500 area in the next weeks. Key Quotes 24-hour view: “We highlighted yesterday that USD ‘could dip below 6.4000 but the prospect for extension to 6.3900 is not high’. However, USD rebounded strongly after touching 6.4010. While the sharp rebound

Oil prices slump to a 38.2% Fibonacci level despite the fundamentals. A technical correction as profit-taking ensues has been in play while the greenback spikes.  The reflation trade has been gathering pace which has seen investors move over to riskier asset classes in the past number of trading session where US oil prices rallied to fresh cycle

Since the crash of March 2020, all stocks have tried to recover what they lost and Disney was no exception. Disney did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured

What you need to know on Tuesday, February 16: Optimism maintained the greenback under pressure against all major rivals but the JPY. The upbeat sentiment was backed by hopes that US Congress will speed up a stimulus bill now that they acquitted former US President Donald Trump on his second impeachment. China and the US