And it is back! > Biden re-nominates Powell as Fed chair, praising the progress made in the USA *********************** Biden said "we’ve made remarkable progress", and the US admin mentionned the improvement in unemployement as well as economic recovery, shutting down voices of opposition within the US central banking community. No change in direction, we can...
Fed starts tapering! The long-awaited taper meeting has finally arrived! The Federal Reserve announced during their monetary policy meeting on Thursday that it will begin slowing down its net asset purchases by $15 billion per month which comprises of $10 billion Treasury bonds and $5 billion agency mortgage-backed securities. The first round of tapering will...
The Reserve Bank of Australia (RBA) concluded its monetary policy meeting on Tuesday with no change in its weekly A$4 billion bond purchases, aka quantitative easing (QE), while holding interest rate unchanged at 0.10%. What has changed during this meeting is the ending of the central bank’s yield curve control (YCC). Dropping the YCC It all began when the RBA...
QE has ended. During the monetary policy meeting yesterday, the Bank of Canada (BoC) carried out a hawkish move. The initial expectation from the market was for the central bank to taper its quantitative easing (QE) from C$2 billion per week to C$1 billion per week. However, the BoC surprised the market by bringing its QE to a halt. Rate hike timeline carried...
Good morning everyone, Below is a list of some of the events that have most influenced the movements of the American stock index from the beginning of the Pandemic to today. The same events can also be used to accompany the movements of other indices to study their effects. Apart from some unforeseen events, everything revolves around and is supported by what...
GBP began clawing back its losses from FOMC week as a silver lining appears to show through its Monetary Policy announcement. 1 more vote has joined Michael Saunders in beginning the asset tapering for Great Britain and this wasn't much of a surprise after seeing GBP smash its CPI Y.Y from last year's 2% to what it is now 3.2%. The market has seen this as a...
DAILY MARKET BRIEFING; EUR/USD TECHNICAL ANALYSIS September 23/2021 The EUR/USD had a complete move towards the August 23rd lowest support area as negative economy reports blazed from the side of the EURO zone earlier in the last trading hours. It was not long ago when the expected interest rate hikes took charge of the market sentiment. Yet, the government...
Given world monetary policies, we might se an correction on gold coming weeks. The question is if the circumstances will change and 1680 will hold and get back in a bullish divergence. Or, will we see any changes in the global economy which will give support to buying gold as a safe store of value in stormy days. Interesting time. What do you think might be a...
In this post, we will analyze the principles and features of the AUD / USD currency pair and identify the points and signs of buying and selling. Basics Minutes of the Australian Monetary Policy Meeting were held at 6 am Iranian time today. The following is a summary of this meeting. The meeting discussed the slowdown in Australia's economic growth compared to...
after retesting the lowest low in the last three months on 9th August, the price is in an uptrend. On 3rd September the gold price couldn’t break the familiar resistance of Senkou Span B at 1834.14. personally, I would not consider trading as long as the gold price is in the Ichimoku cloud. I consider 1756.06 as the next strong support for the gold price in short...
The ECB’s decision. The European Central Bank (ECB) held its interest rates unchanged during their monetary policy meeting yesterday. Main Refinancing Operations Rate: 0.00% Marginal Lending Facility Rate: 0.25% Deposit Facility Rate: -0.50% The size of its quantitative easing (QE) programmes remains unchanged as well. Asset Purchase Programme (APP):...
The dovish tapering decision. During its monetary policy decision yesterday, the Reserve Bank of Australia (RBA) kept its cash rate unchanged at 0.10%. As promised, the central bank proceeded with its quantitative easing (QE) tapering plan announced back in the July’s meeting. What came as a surprise is the duration of the new round of QE. Previously, the RBA...
At its monetary policy meeting from earlier today, the RBA observed worsening growth prospects in Australia due to the Delta variant. These muted forecasts for Q3 are likely to prompt a correction on AUDUSD's uptrend. The uptrend continues to be active, as underpinned by the ADX indicator, which has been threading above the 25-point threshold for quite a while....
The price action of the USDCAD pair is currently nearing the last swing peak at 1.28000 (the Distribution area in red). If it manages to penetrate above it, the price would then likely head towards the 1.272 Fibonacci extension level at 1.29054. The dollar strengthening in the short term is owing to investors and traders' expectations of FED tapering. Notice that...
The last-minute decision. During their monetary policy meeting earlier today, the Reserve Bank of New Zealand (RBNZ) carried out a last-minute change in decision, holding its overnight cash rate unchanged at 0.25%. New COVID case in six months thwarted RBNZ’s rate hike plan. Just yesterday, the first local COVID case was reported in New Zealand in six months....
The above chart show’s FXCM’s USDOLLAR index on a weekly time scale and is reflective of the primary trend. Longer-term charts tend to align with the underlying fundamentals and here we can see a higher trough followed by a higher peak – the technical definition of an uptrend. The greenback is trending up as market participants start anticipating the tapering of...
Three days ago, the Reserve Bank of Australia (RBA) delivered a little surprise when it decided to stick with its quantitative easing (QE) plan announced back in July despite the recent spike in COVID cases in Australia. (Refer to my post "RBA Sticks With QE Tapering Plan (04 August 2021)" on RBA monetary policy) Details on why the central bank decides to...
The BoE’s decision. As widely expected, the Bank of England (BoE) carried out no change to its monetary policy during its meeting yesterday. Interest rate remains at 0.10% with all eight voting committee members voting for no change. Quantitative easing (QE) remains at £895 billion in total. Michael Saunders, one of the hawks of BoE, voted for a reduction in...