Following the FOMC minutes on Wednesday, gold has seen a massive two day move that brought the precious metal to five-week highs. Worries mount as market participants are beginning to realize that the Federal Reserve is stuck within a liquidity trap. The minutes statement indicated that the Fed saw risks to near-term inflation (as the five-year breakeven rate hit...
The proof is in the pudding, well it is in the globalized failing of quantitative easing. Abeconomics is no different. Japan Prime Minister Shinzo Abe will continue to feel pressure as his "three arrows" economic policy fails to push consistent economic expansion. Japan's economy shrank 1.6 percent on an annualized basis with falling exports and contracting...
Please check out the full article here: oilpro.com The Energy Select Sector SPDR® Fund (XLE) has been battered, and it is starting to bruise. With the price of crude now just hovering $43 per barrel, this exchange-traded fund (ETF) is likely to get a whole lot cheaper. This fund has support near-term because Wall Street is discounting recent events in the oil...
The dollar-yen has been rather range bound, floating between 123 and 125. The U.S. dollar is likely to remain firm heading into September, as many market participants believe the Federal Reserve will finally raise the Fed funds rate for the first time since 2006. Many traders are looking at the fact that funds rate future traders are pricing in a 54 percent...
Please check out the full, original post chalk full of information: oilpro.com .... On a market technician's viewpoint, if fundamentals do not shape up quick with support from consumption economies, like the U.S. and China, crude could break 2009's low of $33.20 per barrel. I also expect the dollar to continue to rise, increasing deflationary pressure throughout...
The U.S. dollar index (DXY) is in a precarious place ahead of the highly anticipated non-farms payroll print tomorrow. Technically, the DXY is budding up against descending trend resistance created when the greenback was able to carve out a multi-year high of 100.39 in March. After a series of lower-lows and lower-highs, traders have been able to create a slight...
The U.S. dollar index is sharply down, following a horrendous day for Chinese equities that did not spark any "safe haven" buying. The 8.48 percent drop in the Shanghai composite was the second worst day ever for the composite since 2007. Traders feared that the Chinese government and the People's Bank of China (PBoC) would pull any assistance to help keep their...
The dollar-yen has been able to recover a sizable portion of yesterday’s ensanguine price action, following the dollar’s rejection from key technical resistance. Support for USDJPY remains clear with the Federal Reserve’s promise to hike rates, supposedly, sometime this year. With the Fed keeping traders guessing, the dollar remains in an upward trend as the...
I'll opine briefly Did the market take a "pound" of flesh from traders, following a near 700 pip parabolic move? Traders often think these moves are ever-green; but there are a few take aways from the three-day wash out: The vast majority of forex traders (or retail in my opinion) are technical traders. They depend solely on price movement and indicators to try...
Go long on "optimism" Traders are more “optimistic” in that everything will work out – from rate hikes to Greece – and risk continues to bid higher on the news, or no news as it were. Greece is said to be saved after Prime Minister Alexis Tsipras gave into the troika and EU on a bailout extension. The game theorists got.. played? However, the International...
Yesterday, Ashraf Laidi put out an interesting post on the USDJPY and a 40-month cycle. From April 1995 to August 1998, the pair rose just over 85 percent. In brief, in the mid-90s, the US were raising interest rates (who does that anymore? Psh), which made the dollar stronger following the recession of 1990. The Japanese yen was devalued, too, as their asset...
Gold is hated but most because it is the antithesis of greed, which has been feed for years by central banks around the world. I'll be frank, I was rather bearish on the shiny metal an forecasted $1,035 per toz. in 2013. However, as the charade of lackluster growth and quasi-monetary policy continued, gold's fundamentals are bullish. It is too simplistic to...
Dollar bulls may be few and far between, as a potential rate hike has now become a "buy the anticipation, sell the rumor" play. Even the most hardcore bulls like Marc Chandler has taken a step back to rethink the dollar. After making a series of lower highs and lower lows, the dollar could very well test the lows near 93; while a series of resistance levels...
The kiwi has been able to stable a relatively impressive entrancement, following the volatility in the dollar. I first noticed the rally yesterday after it was reported that US President Obama voiced his concern over a stronger US dollar; and all dollar-pegged currencies jumped. Here is my original tweet prior to the surge: twitter.com It is no wonder on why...
The dollar's volatility led to monster rallies in the Sterling, euro and Australian dollar. However, the move in the Sterling will look to digest some of its gains, as we've seen with the euro. The four hour chart shows price action is still relatively bullish near-term, but the GBPUSD is resting on the support of an ascending channel that is within a much larger...
The US dollar index was a thing of bubbly-beauty, gaining over 25 percent in a year. Traders thought that after seven years, it is now time for the Federal Reserve to raise rates. Unfortunately, reality is set it. The Fed has always claimed to be data-dependent. First, the potential for a rate hike was when unemployment dropped to 6.5 percent. That came and went...
This is not the first time the euro-dollar has been able to stage monster rallies, as faith in the US dollar continues to crumble. The dollar index has had a few of the worst days since 2009. Previously via Twitter, I supported the initial rally from 1.0880; but as it approached the current supply zone, I believed it would be a tough nut to crack for further...
EURAUD received a big boost as the Aussie dollar practically cratered. The mild pullback in the dollar, along with optimism over the Greece turmoil, has boost the euro from it's intraday lows. Momentum on the intraday chart is looking to putter out. A 70 pip move is rather small for this pair, but see it as a reasonable pullback - but price action could continue...