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APAC Currency Corner – Traders are warming to Fed summer rate hike?

The Greenback continued moving higher on Tuesday on the back of supportive US home sales data, which came in 619k versus just 523k expected, one of the best level seen since 2008. The Aussie – topsy-turvy times There was a moderate nosedive in the Aussie overnight on the back of the RBA’s Glen Stevens, who was making […]

Dollar Moves Handcuffed To Fed Talk

Five things the markets are talking about With “hawkish” Fed rhetoric remaining equities biggest hurdle, coupled with ‘little’ new U.S economic data, the end of the North American earnings season, and significant event risk in the coming month has investor sentiment shifting cautiously in favor of “wait and see.” This approach continues to have a […]

Europe Remains Range-Bound For Now

It’s been a relatively calm start to the week so far, with Asian markets overnight trading relatively mixed and offering little direction for stocks in Europe ahead of the open. Equity markets appear to be in a state of complete indecision right now and as a result have been left range-bound for the last few […]

APAC Currency Corner – June rate hike countdown

The Aussie With little in the way of fundamental drivers this week, the Aussie should be at the mercy of USD border moves and investor risk sentiment as the markets continue to churn on the heightened prospect of a US interest rate hike. Equity markets ended last week on a firmer note. The S&P500 rose […]

Week Ahead in FX – Fed Minutes Put June Rate Hike Back in Play

Hawkish FOMC Minutes and Strong Data Boost USD The biggest surprise of the trading week came from an unlikely source as the minutes from the April 27 Federal Open Market Committee (FOMC) meeting were published. The notes are published three weeks after the release of the statement and many say it is an outdated practice […]

USD/CAD Weak Canadian Sales Hurt Loonie

The Canadian dollar continues to depreciate against the U.S. dollar after the U.S. Federal Reserve published the minutes from its April Federal Open Market Committee (FOMC) meeting on Wednesday. The notes were surprisingly hawkish and put the June FOMC back on the table as a possibility of a rate hike. The interest rate divergence that […]

Europe Higher but Remains Range-Bound

European equity markets are expected to open higher on Friday, paring Thursday’s losses and rebounding once again off the range lows they have traded within for most of this month. Stock markets haven’t really made any progress so far this month, instead they’ve established a new tight trading range and are simply moving between support […]

Top trade idea for May 20th, 2016 – AUD/JPY

On Alert in AUD/JPY Writers are often advised to read widely. The idea is that the greater the input, and the range of the input, the better the output. The same is true for traders. The more and varied sources of market information, the more potential trades. The challenge is that there are so many […]

USD/CAD Loonie Struggles Against Rising USD

The Canadian dollar dropped to a one month low as the effects of the hawkish Federal Open Market Committee (FOMC) minutes released on Wednesday. The USD has gained across the board versus majors as the U.S. Federal Reserve changed market expectations with the release of the notes from the April 27 meeting. The April FOMC […]

Fed In “If” Mode

Five things the markets are talking about Yesterday’s FOMC minutes indicate that the bank was in “if” mode, as in, if data supports a rate hike, U.S policy makers ‘could’ increase rates at the next meeting on June 14-15. Accompanying the “if” message were the usual disclaimers – the bank is of course concerned about […]

Top trade idea for May 19th, 2016 – GBPUSD

GBPUSD acting extremely bullish as the day the Fed released the minutes, namely yesterday, a poll in the UK showed that the sentiment is leaning toward a stay at the upcoming EU referendum. It was enough for the pound to squeeze all over the board and even the fact that the minutes were bearish was […]

Fed Minutes Key as Hike Message Finally Hits Home

It’s been some time coming but it seems the markets are finally waking up to the idea that the Fed could raise interest rates before the end of the year, even more than once. There has been repeated warnings from various Fed officials recently which have been largely brushed off by an investing community that […]

U.S Data Supports New Fed Fund Odds

Five things the markets are talking about Recent data would suggest that the U.S. economy is stabilizing, despite the tough winter. Reports released yesterday showed a pickup in U.S industrial output, continued momentum in the U.S housing sector and firming inflation, all point to stronger growth in Q2. If we add this to mix of […]

Top trade idea for May 18th, 2016 – USD/CAD

The US dollar has eased of its best levels after rebounding across the board following the release of some strong US macroeconomic pointers on Tuesday.  Meanwhile, the Canadian dollar has weakened against most major currencies despite the fact crude oil prices have repeatedly hit new 2016 highs this week. Consequently, the USD/CAD pair has been […]

USD/CAD Loonie Mixed Ahead of FOMC

Canadian manufacturing struggles to regain traction after March manufacturing sales fell 0.9 percent. The silver lining was that economists were expecting a worst fall by 1.9 percent but still show a decline in 16 of 21 industries. The better than expected data was offset by a downgrade of last month’s figures who is now a […]

APAC CURRENCY CORNER – G7 MEETING IN CROSSHAIRS

Yen – GDP better than expected The correlation between USDJPY and US equities is back in play as you can virtually overlay Yen movements with the latest gyrations in S& P futures. So traders will be paying particular attention to investor risk sentiment for USDJPY moves. Overnight US equity markets gave back almost all of Monday’s gains on Tuesday, […]

Brexit Poll Puts Leave Camp Ahead

Five things the markets are talking about The Fed is having a tough time getting its own message across; you know the one that U.S rate normalization has begun. The Fed believes that market participants are caught behind the curve; by under pricing future Fed rate hikes. Later this morning, in this holiday shortened trading […]

Top trade idea for May 17th, 2016 – NZD/USD

On the 4H chart of NZDUSD we are observing an idea of an ending diagonal placed in the last blue leg C, that was recently completed, as sharp reversal through the lower trend line might have just started a new bearish cycle. As of now we think that the first impulsive leg was red wave […]

USD/CAD Loonie Rises as Oil Gets End of Glut Call

The Canadian dollar rose against the USD as oil prices surged after several oil disruptions have kept global production lower and Goldman Sachs has now called an end to crude oversupply. The investment bank had previously had a $20 call on oil prices, but now analysts are seeing stockpiles shrink with higher demand and lower […]

US Futures Mixed as Oil Hits Six Month High

It’s been quite a mixed start to the week for the markets, with Asia offering little direction overnight having recovered late on following a tough start, Europe coming under pressure early in the session and U.S. futures pointing slightly higher. Today’s moves actually reflect quite well the lack of direction we have in the markets […]