FX

XAU/USD, “Gold vs US Dollar” XAUUSD is trading at 1873.00; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s downside border at 1845.00 and then resume moving upwards to reach 1945.00. Another signal in favor of a further uptrend will be

In its latest update on the Reserve Bank of New Zealand’s (RBNZ) monetary policy, Ben Udy, Australia & New Zealand Economist at Capital Economics, noted, “we now expect the RBNZ to tighten monetary policy in the years ahead as GDP growth, the labor market and inflation will be much stronger than the Bank has anticipated.”

Spot silver prices have seen indecisive/choppy trade on Monday. The precious metal trades close to flat on the day just under the $25.50 mark Indecisiveness in silver and other precious metals is indicative of a mixed feel to market sentiment. Spot silver prices (XAG/USD) have seen indecisive/choppy trade on Monday, swinging between the $25.40 and

One-month risk reversal on USD/INR, which measures the prices of calls (bullish bets) relative to puts (bearish bets), has retreated to 0.25 from the two-month high of 0.525 seen earlier this month, according to Reuters.  The pullback indicates a weakening of demand for call options, which give the holder the right but not the obligation

Iraq, the OPEC’s second-biggest producer will pump around 3.6 million barrels daily in January and February, Bloomberg reported, citing Ali Nizar, the deputy head of State Organization for Marketing of Oil (SOMO). According to data compiled by Bloomberg, Iraq produced around 3.85 million per day in December. The planned oil output cut in January and

The European Central Bank (ECB) Governing Council member Olli Rehn dismissed yield curve control as a tool to enhance the financing conditions in the euro area while speaking in an interview on Finland’s YLE TV1. Key quotes (via Bloomberg) Yield curve control “would be a rather mechanical approach” to the question of financing conditions, and “not sensible” given

Gold (XAU/USD) fell 1% on Friday as risk-off mood and stellar US Markit Manufacturing PMI boosted the US dollar. Despite the decline, the yellow metal managed to close the week above the $1850 level, booking the first weekly gain in three weeks. Expectations of a massive US fiscal stimulus under the Biden administration kept the

Major US equity bourses closed the final trading day of the week in the red. A number of factors were cited as being behind the more defensive equity market tone. Stocks were given a mild boost following much stronger than anticipated preliminary January US Markit PMI numbers. Major US equity bourses closed the final trading

Bitcoin’s dissimilarities with gold in many ways suggest that it cannot replace the yellow metal as a risk diversifier in portfolios, Joanne Goh, Strategist at DBS Bank, reports. Bitcoin cannot be fundamentally valued, whereas the bank’s proprietary gold model suggests gold price can hit $2,300 this year. Key quotes “Our base case looks for more

“Current yuan exchange rate is within a reasonable and balanced range,” the State Administration of Foreign Exchange (SAFE), China’s fx regulator, said in a statement on Friday. Further comments “Changes in international markets could lead to more fluctuations in China’s foreign exchange market.” “Will step up monitoring on cross border capital flows and risk assessment.”

EUR/USD advances further and clinches weekly highs. The ECB left interest rates unchanged at Thursday’s event. Lagarde’s message falls on the neutral/(slightly) bullish side. The upbeat sentiment around the European currency picks up further pace and lifts EUR/USD to new weekly peaks around 1.2170. EUR/USD keeps the buying bias unaltered EUR/USD’s upside gathers extra impulse

The People’s Bank of China (PBOC) is expected to keep the loan prime rate (LPR) steady, in order to help solidify reductions in corporate loan rates, the Financial News reported on Thursday. The Chinese central bank left the LPR unadjusted at 3.85% in January while holding the five-year LPR steady at 4.65%. Key takeaways “China’s

Prices of the WTI edge higher and target $54.00. Attention is on probable announcements by Biden later on Wednesday. The API will publish its usual weekly report on US crude oil supplies. Prices of the West Texas Intermediate (WTI) move closer to the key $54.00 mark per barrel on Wednesday. WTI stays firm, looks to

Analysts at Goldman Sachs recommend buying the dips for the global equities, including the S&P 500 index, in light of the stimulus measures. Key quotes “The market is rising on good news but choosing to largely ignore weaker data and rising infection rates.” “There is a risk of a correction, but without a bear market

Gold price drops amid stimulus and poor data The price of gold has declined further amid incoming U.S. President Joe Biden’s fiscal stimulus and poor economic data, which is a bearish sign. The weakness in the gold market continued last week. As the chart below shows, the London P.M. Fix declined below $1,840 last Friday

Bulls are stepping in for a restest of the prior daily support.  The daily M-formation offers an opportunity to target the upside prior to the downside extension.  The price has rallied from the structure in what could be an extended correction of at least  50% mean reversion of the recent bearish daily impulse.  The following is

EUR/USD extends the move lower to the mid-1.2000s. Further downside faces the 55-day SMA at 1.2037. EUR/USD loses further momentum and visited the early December lows in the 1.2060/55 band, where some support appears to have emerged. The continuation of the downtrend carries the potential to challenge the psychological support at 1.20 the figure, although

GBP/CAD bulls are testing key resistance on the 4-hour time frame.  The medium-term outlook is bullish according to a top-down technical analysis.  GBP/CAD is attempting to move higher in what would equate to a bullish extension on the weekly and daily time frames. The following illustrates where the next bullish opportunity could be derived from a