KQMarkets

KQMarkets

We see Silver moving higher and continuing its recent uptrend from September lows just above $17 whilst it is above key support at around $21. However, we await key data releases such as the Q3 US GDP growth rate tomorrow and non-farm payrolls on Friday. This could indicate whether FED chair Powell will continue with aggressive rate hikes or increase market...

KQMarkets

USDJPY has dropped since it's recent highs above 116 on the back of a weaker than anticipated payroll Friday with 199K jobs added in December vs 400K expected. The FED had indicated at last Wednesday's meeting that it would reduce the balance sheet sooner causing yields to rise strengthening the US dollar. This is largely due to the FED's fears of rising inflation...

KQMarkets

EURUSD found support at 1.12 and rebounded from it's strong downtrend since the end of May. However, the 20 day MA at 1.13 is still below the 50 day MA at 1.14 and 100 day MA at 1.15. Additionally, US data released today indicated that inflation is still rising with the Core PCE Price Index YoY at 4.7% vs 4.5% forecast. Rising inflation increases the likelihood of...

KQMarkets

We still hold a short view on AUDUSD despite the currency pair continuing it's rebound from yearly lows around the 0.7 psychological level. Additionally, the US inflation rate came in today at 6.8 % as forecast resulting in limited price action. However, the impact of the Omicron covid variant could disproportionately impact the Australian dollar as it is...

KQMarkets

We see Gold continuing to move higher whilst it remains above support at $1773. Gold has sustained it's upward momentum on the back of fears surrounding rising inflation and also a weakening US dollar. The precious metal is perceived as an effective hedge against rising inflation as it is seen as a store of value. We await key economic data releases including the...

KQMarkets

We hold a short view on Silver whilst it remains below key resistance at $22.2 despite it's rebound today. The precious metal has been in a downtrend since mid June as the FED indicated a more hawkish stance on monetary policy causing the US dollar to strengthen. Additionally, yields have been rising with the 10 year treasury note yield rising from 1.3% to 1.5%...

KQMarkets

Bitcoin has continued it's strong momentum since end of July lows which saw prices fall below $30,000 largely on the back of a ban on crypto mining by the Chinese state council. This has led to international Bitcoin miners replacing Chinese miners and the hash rate has been recovering which is very encouraging as high hash rates creates greater security for the...

KQMarkets

USDJPY has been in a downtrend since the beginning of July largely due to concerns surrounding the covid Delta variant as the Yen is seen as safe haven. However, the FOMC minutes indicated that it would scale back it's bond purchases later this year which is earlier than expected by the market. This could lead to USDJPY moving higher and consolidating above...

KQMarkets

EURUSD has dropped below long term support at 1.175 on the back of the FOMC minutes yesterday which indicated that the FED will scale back on it's bond purchases later this year. This is earlier than previously expected by the market and has led to EURUSD to continue it's downward momentum which has seen the 20 day MA fall below the 50 day MA and the 50 day MA...

KQMarkets

AUDUSD has consolidated below at 0.748 and we expect below this resistance level the currency pair to move lower toward the psychological 0.7 level. Non farm payrolls came in at 943K vs 870K forecast boosting the US dollar as Australia continues to be impacted by the covid delta variant. Additionally, treasury yields have risen on the back of the strong payroll...

KQMarkets

Gold has continued it's upward momentum and consolidated above resistance at $1821 after yesterday's FED meeting. Powell gave no indication on when the FED would start tapering or to what extent as despite progress with regards to employment and inflation goals it was suggested that additional improvements would be required. This led to Gold surging and we believe...

KQMarkets

Silver has consolidated below support at $25.2 and we feel can move lower if the FED suggests that they will raise rates and taper asset purchases earlier than expected by the market. The market expects the FED to continue it's dovish stance due to renewed fears over the impact of covid on the global economy despite rising inflation. The US inflation rate...

KQMarkets

Bitcoin has consolidated below support at $31,200 and continued to fall below the psychological $30,000 level. We expect the cryptocurrency to move lower if doesn't rebound strongly back above resistance at $31,200 in the coming trading sessions. Bitcoin has sustained it's downward momentum since the beginning of May on the back of Chinese crackdown and most...

KQMarkets

USDJPY has dropped significantly today as equities have sold off from all time highs in the past few trading sessions due to renewed fears surrounding the covid delta variant. The Yen is seen as a safe haven currency and the covid crisis saw the currency pair drop towards 102 before rebounding and rising as high as 111. We feel the currency pair could continue...

KQMarkets

Powell in his testimony to congress yesterday insisted that the rise in inflation which has seen US CPI reach 5.4% is transitory and that there would be no shift in monetary policy. The FED indicated that it would continue it's monthly asset purchases and didn't suggest that it would raise rates sooner then expected. We therefore anticipate EURUSD to keep moving...

KQMarkets

AUDUSD has consolidated below support at 0.786 as the US dollar has strengthened across the board. Additionally, the Australian dollar has weakened due the impact of covid as cases have risen resulting in Sydney extending it's recent lockdown. If Powell indicates in his testimony later today that the FED are likely to raise rates sooner than expected by the market...

KQMarkets

US inflation continues to rise as illustrated today with the Core Inflation Rate YoY (Jun) coming in at 4.5% actual vs 4% forecast and the Inflation Rate YoY (Jun) in 5.4% actual vs 4.9% forecast. However, whilst there is no major shift in FED monetary policy we see Gold continuing to move higher in particular with renewed concerns surrounding the coronavirus with...

KQMarkets

The FED indicated yesterday that it would be raising rates in 2023 earlier than at least 2024 which was previously predicted in March. This is due to high growth forecasts and rising inflation as the US economy continues it's post pandemic recovery. As a result Silver has sold off post the FED meeting and we see prices moving much lower over the coming trading...