The Yen continues to weaken. The USDJPY is now at a 25-year high.
The Bank of Japan (BOJ) intervention could happen any week, meaning some big moves on JPY pairs. I am expecting at least a 500 pip bearish move on USDJPY 💥
If there is no intervention, USDJPY may reach as high as 155-160 before the BOJ changes interest rates to strengthen...
The Russell is at a potential attractive buy area for long-term investors.
The Russell ( FX:US2000 ) stock index is in a retrace move. Price is currently between the monthly 50 and 100 SMA's.
Historically, buying when the price is between the moving averages has been a favourable entry area for long-term investments.
USDCAD is at a key technical resistance level. Price may break higher or start ranging.
USDCAD is potentially ranging between the 1.30 and 1.40 price handles. Price is currently testing the range resistance area.
Fundamental analysis suggests a potential move higher. This week's news may determine if the resistance holds, though.
⏰CHF at key levels ⏰
The Swiss Franc is at key technical support levels on several pairs. The CHF strength is driven by the Israel-Hamas war.
The support levels will likely not hold if there is further escalation in the region. Expect the support levels to break and ***CHF pairs to move lower.
If by some miracle, the war becomes...
The UK's September inflation figures were released today. Inflation has not come down and continues to be high. This puts the Bank of England (BOE) in a dilemma.
UK YOY inflation has been released as 6.70%, the same as the previous month. Despite the BOE's rate hikes, UK inflation remains high and looks stubborn now. This could be the...
UK and Canadian inflation rates will be released next week. These events could provide insight into whether the Bank of England(BOE) and the Bank of Canada(BOC) decide to raise rates further.
As things currently stand, the BOE will likely pause rates, and the BOC will raise rates again. This is in line with the current inflation figures....
USDJPY is nearing the 150 handle again. The Bank of Japan (BOJ) may intervene, creating lucrative JPY buying opportunities.
The Yen is weakening. The JPY Currency Index ( TVC:JXY ) has the Yen at all-time lows. The last time the Yen was this weak was in September and October 2022; the BOJ intervened in the FX markets to strengthen the...
YOY inflation for Denmark released at 0.90%!
What does this mean for the DKK... A possible rate cut. In other words, the potential end of the DDK selling.
We may now see USDDKK end its current uptrend. Price could become indecisive or even move off key resistance at 7.1000.
I can't wait to see what happens!
The ECB raised rates this week. The Euro fell.
The market has priced in this week's rate hike as the last. It thinks the ECB is done.
Judging by current Euro Area inflation, there are more rate hikes to come.
What does this mean? A stronger Euro, which is not currently priced in.
Keep an eye on Euro Area inflation figures. If inflation continues to be...
JPY continues to be sold. USDJPY is nearing the previous intervention area of 148-151. The BOJ needs to do something. They are starting to feel the squeeze.
Today, the bomb started to tick. The BOJ has suggested they will do all possible to strengthen the Yen. They have two significant weapons: intervention and interest rates.
Intervention - This will bring an...
The RBA are likely to continue raising rates, more so than the BOC. The real fundamental bias is based on the economic data, though - Australia has released much more attractive economic figures than Canada. In fact, the AUD is a clear buy for me, if and when the price action agrees.
We could see price reverse from the current support at 0.8815. If not, the next...
The JPY is undervalued...
Unlike other global economies, Japan is not facing an inflation crisis or below 50 PMI figures. The Yen has also been victim to some large bearish moves over the last few years, which are due a retrace move. In my opinion, it is starting to look like a good buy from both a fundamental and technical point of view.
As a safe haven...
It's the 24th May 2023, 3pm local time. The Reserve Bank of New Zealand (RBNZ) have just increased the official interest rate by 0.25% to 5.50%, as expected. What happened next was not expected... The RBNZ announced that they currently have no intention of raising rates further and that the next rate change could possibly be a cut!
What does this mean for New...
The Russell, and other stock indices, have been in a retrace move since November 2021. High inflation and fears of a predicted recession are the driving force of the current downside.
Is now the time to re-enter equities? Is the retrace move coming to the end? Have the markets found a bottom?
Here are my thoughts...
Inflation is coming...
Fundamentals drive the markets... Here is what we could see happen in 2023...
1. Inflation reversal - possible downside for the US Dollar. Rising inflation and inflation fears drove the USD higher in 2022. Now that inflation is coming down and is more under control, we could see USD downside throughout 2023.
2. Global recession trades - this is already priced...
This is my high risk, long term carry trade for 2023 (opened in 2022, looking to add to my position further).
The swap rate is very attractive - to provide some insight, I have received a 3% account increase since opening my first long position in 2022, through daily interest receivables.
The Fundamentals... Turkey has potential. Exports are climbing. The...