All Articles Tagged - gold

US Open Note – Euro cheers on rate hike talk; stocks in the green as well

Posted on April 21, 2022 at 1:30 pm GMT

ECB’s rate hike talk intensifies It seems the European Central Bank (ECB) is prepping for the new reality of higher interest rates to fight inflation even though geopolitical developments around Ukraine keep clouding the Eurozone’s economic outlook. ECB’s Spanish Vice President Luis de Guindos endorsed yesterday’s hawkish talk from Latvian ECB governing council member Mārtiņš Kazāks, confidently approving the end of the regular APP bond purchases in July, while stating that from today’s perspective a rate hike in July, September and even [..]

Daily Market Comment – Yen pressure eases slightly, US futures slip after Netflix miss

Posted on April 20, 2022 at 9:08 am GMT

Dollar breaches 129 yen, fuelling speculation of currency intervention But pullback in yields helps yen to steady a little Wall Street jumps but rebound looks shaky as Netflix shatters earnings optimism Softer yields offer temporary respite for sliding yen The Japanese yen continued to slump on Wednesday, but its overnight losses lessened heading into the European session as government bond yields retreated slightly. The US dollar scaled a new 20-year high of 129.40, surpassing the 129 level for the first [..]

Technical Analysis – Gold declines further after breaking uptrend line and 200-period SMA

Posted on April 20, 2022 at 7:44 am GMT

Gold prices have been tumbling beneath the short-term uptrend line over the last couple of sessions as well as below the 200-period simple moving average (SMA). The 20- and 40-period SMAs are ready for a bearish crossover after the aggressive selling interest from 1,998. According to the technical indicators, the RSI is approaching the oversold territory with stronger momentum than before, while the MACD is strengthening its bearish movement below its trigger and zero lines. Both are confirming the negative [..]

US Open Note – Will the explosion in yields hurt the US housing market

Posted on April 19, 2022 at 1:23 pm GMT

Dollar remains buoyant due to aggressive rate hike rhetoric It is apparent that the Federal Reserve is unpacking one of the most aggressive policy tightening schedules to starve inflation, which has been running at its fastest pace in 40 years and try to cool an overheating economy. Double-rate hikes expected in the next couple of meetings and a Fed funds rate around 3.00% by next year, may brew a cocktail that could wobble the US housing market, in terms of [..]

US Open Note – Stocks flicker green, higher yields feed dollar resilience

Posted on April 18, 2022 at 1:37 pm GMT

Fed underpins yields, today’s highlight: RBNZ Governor Orr The week starts off with a bunch of countries observing Easter Monday, and mixed March retail sales out of China, leaving the week’s main market drivers linked to speeches from heads of central banks, Canadian and New Zealand inflation data, and various countries’ retail sales and PMI data on Friday. Elevated price pressures and a hawkish Fed are adding fuel to the US yield fire. Markets are pricing in an additional 211.5 [..]

Daily Market Comment – Yen losses snowball as yields forge higher

Posted on April 18, 2022 at 9:15 am GMT

Yen continues to sink despite BoJ’s soft verbal intervention Stocks trade heavy as yields soar, China GDP offers no relief Gold flies in the face of negative macro trends – who’s loading up? Yen demolition The Japanese yen has been blown to smithereens. Central banks around the world are raising interest rates to combat spiraling inflation, yet the Bank of Japan refuses to play this game. That’s because there’s no inflation to fight – the annual CPI rate in Japan [..]

Technical Analysis – Gold heads for 2,000 as bullish bias grows

Posted on April 18, 2022 at 7:11 am GMT

Gold brought the 2,000 number back into scope after halting Friday’s setback near the former resistance of 1,959. The RSI and the MACD are currently heading northwards, endorsing the bullish appetite in the market. Of course, the Stochastics have already entered the overbought zone, suggesting that room for improvement is probably narrowing, though as long as they trend northwards, upside price movements are more likely than downside ones. The 20-day simple moving average (SMA) has recently avoided a bearish intersection with the 50-day SMA, [..]

US Open Note – ECB confirms intention to cease bond purchases; US retail sales come out

Posted on April 14, 2022 at 1:05 pm GMT

ECB left interest rates unchanged; euro back near $1.0870 The European Central Bank left interest rates unchanged as expected. Policymakers stated that new data confirmed their view that net asset purchases will be completed in the third quarter. During the April 2022 meeting, the central bank also emphasized that any interest rate adjustments will take place sometime after the completion of the asset purchase program and will be gradual in nature. In the meantime, the main interest rates were held [..]

Daily Market Comment – US yields rally cools, dollar slips, stocks bounce back

Posted on April 14, 2022 at 9:07 am GMT

Treasury yields ease back as Fed’s Waller fuels hopes of inflation peaking Dollar skids, Wall Street rallies despite mixed earnings Euro edges up ahead of ECB decision, loonie buoyed by BoC hike Yields retreat, shrug off record rise in US producer prices US Treasury yields are heading lower for the third day on Thursday, with the 10-year yield slipping below 2.70%, as the recent heightened expectations that the Federal Reserve will hike rates very aggressively eased somewhat. A slightly softer-than-expected [..]

US Open Note – BoC decision in the spotlight; dollar still rises

Posted on April 13, 2022 at 1:05 pm GMT

Dollar holds its bullish tone Officials at the Federal Reserve have not changed their hawkish stance. Governor Brainard commented that the Fed’s top priority is to combat inflation and it will implement a policy of neutrality “expeditiously.” Brainard also stated that Russia’s incursion into Ukraine raises inflation concerns, and if it continues, those concerns will only grow as the supply chain troubles worsen. The governor noted that, with this year’s fiscal impact, financial circumstances are already tightening, which will reduce consumption. The dollar is holding its ground, helped [..]

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