All Articles Tagged - gold

European Session – Yen surges on risk aversion, gold at one-year high

Posted on February 11, 2016 at 3:24 pm GMT

Risk aversion spiraled again today, pushing investors to seek safe havens such as the yen and gold, while the US dollar and global equities tumbled. Today’s sell off from risky assets extends from Wednesday following Fed Chair Janet Yellen’s testimony to the US Congress and her acknowledgement of intensifying risks in the US and global economy, while also suggesting the Fed was in no rush to hike rates. Gold prices soared to a one-year high above $1240 on safe-haven demand, [..]

Asian Session – Dollar slides below 112 yen on dovish Yellen

Posted on February 11, 2016 at 8:38 am GMT

The US dollar slipped to fresh 4-month lows following Fed Chair Janet Yellen’s testimony yesterday where she warned of downside risks to the US economy. Speaking before Congress, Yellen stuck to the Fed’s current policy path but signalled that rates might have to rise at a more gradual pace than expected, saying that the Fed is not on a “preset course”. She noted that financial conditions in the US have become less supportive of growth and while the economy is [..]

Market turmoil boosts safe havens as global equities slump

Posted on February 9, 2016 at 1:30 pm GMT

Volatility in financial markets intensified on Monday and Tuesday, leading investors to seek safety in less risky assets. Safe-haven currencies like the yen and the Swiss franc have risen sharply, while government bond yields such as that of Japan, the US and Germany have dropped to near or at record lows. Equities have been the main losers in the current market rout. US indices fell sharply for a second day on Monday and the S&P 500 is down 9.3% since [..]

Nowhere to hide? Turmoil presents tough choices to investors

Posted on February 9, 2016 at 1:18 pm GMT

The latest episode of volatility in financial markets has been a defining characteristic of the trading environment since the beginning of the year. In this environment, key relationships and trends of previous periods – such as the unquestioning belief in the US dollar uptrend or confidence in the mostly positive outlook for developed economies and their stock markets – have been seriously shaken. Many investors are looking for safe havens as shelters in which to weather this storm and some [..]

FX Daily Outlook | 09-02-16

Posted on February 9, 2016 at 10:17 am GMT

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European Session – Widening yield spreads hits euro; dollar drops to 1-year low below 116 yen

Posted on February 8, 2016 at 3:17 pm GMT

European equities slumped on Monday as market sentiment turned risk-off despite a calm start to the week in Asia. London’s FTSE-100 index was down by around 2%, while the Frankfurt Dax was off by 2.7%. Concerns about the global economy were heightened today after figures out on Sunday showed the People’s Bank of China spent almost $100 billion of reserves to prop-up the yuan against the dollar in January. This indicates that the yuan is facing continued pressure amid a [..]

Asian Session – Dollar muted ahead of NFP; Gold at 3-month high

Posted on February 5, 2016 at 8:57 am GMT

The US dollar stuck near yesterday’s lows in Asian trading on Friday as investors maintain caution ahead of the January non-farm payroll numbers later today. The greenback has now given up all of its gains against the yen from last Friday when the Bank of Japan decided to cut interest rates to negative. The US currency was down at 116.80 yen in late Asian session. Comments from Cleveland Fed President Loretta Mester that it would be “premature to materially change” [..]

Technical Analysis – Gold at 3-month highs but overbought

Posted on February 3, 2016 at 7:52 am GMT

Gold has marked a three-month high on Tuesday, peaking at 1130.93. Gold has successfully moved above the 100-day moving average and has had a daily close above the 50% Fibonacci for the past two days. This 50% Fibonacci level at 1118.80 is the retracement of the downleg from 1191.47 to 1046.29. (October 2015 to December 2016 decline). Prices are currently capped by the 200-day moving average which is providing resistance at 1128.45. The stochastic is in overbought territory which suggests [..]

FX Daily Outlook| 27-01-16

Posted on January 27, 2016 at 9:41 am GMT

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European Session – Loonie bounces along with oil prices, sterling rallies

Posted on January 26, 2016 at 3:48 pm GMT

Risk sentiment turned in the European session, leading to a recovery in equity markets and a bounce in risk assets. Oil prices bounced back above the key $30 a barrel level, mainly due to hopes that a deal may be edging closer for OPEC and non-OPEC producers to cut the output of oil. This optimism came about after Iraqi Oil Minister Adel Abdel Mahdi said he saw “some flexibility” for a deal, suggesting that Saudi Arabia and Russia could be [..]

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