Gold managed to bounce sharply off its lows during the ECB press conference, presumably because investors are now convinced that the the central bank will try to supress rising bond yields in troubled Eurozone countries, thus re-starting/continuing with some form of QE just as it has started to hike rates.
It remains to be seen whether the gains for gold will...
We have seen the first significant bullish reversal sign in ages with the S&P breaking its bearish trend line. It still needs to repair a lot of damage, but this is a good sign. It needs to hold above 3920 now in order to keep the bulls happy, otherwise this will be considered a false breakout. Next resistance is seen around 4080, the base of the previous...
The world’s second-largest cryptoasset had a brutal second quarter of the year, with ETH/USD prices falling over 75% from nearly $3600 at the start of April to a low under $900 by mid-June. Between the bankruptcy of so-called CeFi lenders (essentially crypto banks without insurance) like Celsius and Voyager, the implosion of the massive Three Arrows Capital hedge...
After a 30% plunge from its peak in February due largely to the dollar’s big rally and surging interest rates, silver has now reached a major support area.
At around $18.50 per announce, the commodity might have become too cheap. Will we see the return of the bulls as the metal tests THIS key support area?
As per the above chart, the area between $18 to $19 was...
The strength of US dollar caused the EUR/USD break below parity today and sent gold tumbling to $1700. But the metal managed a small bounce off its lows as recession concerns supported Treasurys, causing the yield on the 10-year to remain below 3%.
If gold has any chance of a comeback we now need to see the dollar fall back. Right now, expectations are rising...
The EUR/USD finally hit parity earlier amid fears of a Russian gas shutdown, rising hawkish bets on the Fed and downbeat risk sentiment. The final nail in the euro’s coffin was news of a considerable deterioration in the German economic outlook, according to the closely-watched ZEW survey.
But the historical and psychological significance of 1.0000 means we were...
The USD/MXN is attempting a breakout above 20.50, which will also see rates take out the bearish trend line that has been in place since last year. At the time of writing, it was doing a good job at that. A closing break would pave the way for more gains in this pair, and losses for the Mexican Peso.
Emerging market currencies have been in the spotlight amid the...
With investors fearful that a recession might be looming, they are selling everything now: crude oil, copper, stocks, crypto – you name it.
Today, oil caught the attention thanks to its $10 slide.
Crude oil prices are likely to be on a slippery slope given rising concerns about an economic slowdown.
We will now likely see traders sell into the rips than buy...
Strong US dollar and rising interest rate expectations continue to weigh on the precious metal, with the metal once again unable to benefit from the ongoing risk aversion in the markets. With gold prices almost back to the same levels as the early parts of 2022, the outlook doesn’t look great – at least for now. Something must change fundamentally to trigger a...
The big news for Bitcoin was from MicroStrategy, purchasing an additional 480 bitcoins for about $10.0 million at an average price of $20,817 per coin. So far, the news hasn't impacted the price of Bitcoin as it continues to hover around that $20K handle. We will need to see a big reversal stick around current levels to give hope that we have seen at least a...
Unsurprisingly, the Nasdaq has once again underperformed because of its large constituents of technology companies. It has stocks that pay no or low dividends and were driven higher in the past by hopes that we will see strong, sustainable, economic growth. In other words, undesirable companies in the current economic environment.
The Nasdaq hit resistance at...
Bitcoin has risen back above $20K after the weekend plunge below this key level.
At around $20K, bitcoin is now severely oversold following a relentless sell-off. There’s the possibility we will see at least a short-term recovery, although so far, we haven’t seen any clear bottom pattern yet.
Incidentally, the area just below 20K also marks the high from...
The FOREXCOM:USDCHF has been rising for several days as the market has continually pushed up the Fed's projected rate hikes, sending the dollar higher against everything.
The FOMC was expected to hike by 50 basis points, but now the market expects 25 more. A 75 basis hike would be more than any other major central bank and would indicate the central bank's...
Ahead of the May Consumer Price Index (CPI) report out of the US, the world’s oldest inflation hedge is consolidating in a tight range above rising trend line support.
Traders and economists are expecting inflation to come in at 8.3% y/y (+0.7% m/m), in-line with last month’s reading, and with a highly-anticipated FOMC meeting set for next Wednesday, gold in...
The greenback has had a rough couple of weeks against its northern rival, with USD/CAD shedding nearly 500 pips since peaking above 1.30 in mid-May.
Amidst oil prices (strongly correlated with the loonie) surging and hints of a potential second half “pause” to the Fed’s rate hiking cycle, it’s not surprising that traders have been shifting their marginal dollars...
After an impressive 1700-pip surge in just 7 weeks, USD/JPY is showing signs of losing momentum over the past couple of weeks.
The rally was driven by expectations of more aggressive interest rate hikes from the Federal Reserve, but with inflation showing signs of ebbing slightly and traders fully discounting nearly another 200bps of tightening from the FOMC,...
Like other risk assets, Ethereum has had a rough month.
Since the world's second-largest cryptoasset peaked above $3500 early in the month, it has trended steadily lower consistently lower for the last three weeks, hitting a 2-month low under $2800 earlier this week.
It's flying a bit under the radar, but there is a critical catalyst for Ethereum coming up at...
Markets saw explosive moves across the board on yesterday’s news that Russia was invading Ukraine, and not surprisingly, gold was one of the biggest gainers early in the day as traders piled into the safe haven asset.
However, as the day preceded, markets saw a sharp reversal, with everything from oil to stock indices unwinding their initial moves. Gold saw a...
