Daily Market Comment – Nasdaq hits new record as markets say inflation is dead

Posted on June 18, 2021 at 8:51 am GMT

· Tech stocks power higher as markets bet Fed will tame inflation · Dollar keeps rampaging, gold heads for massive weekly losses · Pound struggles after soft data, quadruple witching coming up Inflation-linked trades fall apart Bets for raging inflation in the coming years are being unwound at a stunning pace, sparking all sorts of havoc in the markets. It all comes back to the Fed, which signaled that the days of infinite liquidity are drawing to an end and [..]


US Open Note – FOMC hangover supports dollar as euro and gold dig lower; BoJ rate decision ahead

Posted on June 17, 2021 at 1:23 pm GMT

FOMC triggers much awaited volatility After a period of calmness, the upward revision in the FOMC rate projections displayed in the long-awaited dot plot came to shake the waters late on Wednesday, reviving the rally in global bond yields and of course amplifying the buying confidence in the dollar. In fact, investors had pretty much acknowledged that the monetary policy in the US will be a one-way path to tightening in the coming years even before the hawkish announcement. However, [..]

Daily Market Comment – Fed bombshell turbocharges dollar, sinks gold and stocks

Posted on June 17, 2021 at 9:19 am GMT

· Fed shocks markets by forecasting much faster rate increases · Dollar storms higher, stocks retreat, gold cracks · Blockbuster data trim losses in aussie and kiwi, focus turns to BoJ FOMC signals two rate hikes in 2023 The Fed sent shock waves through financial markets yesterday after it signalled that rates will likely rise faster than previously expected and that a decision to wind down asset purchases may be just around the corner. The dot plot of interest rate [..]

BoJ policy meeting could leave yen languishing – Forex News Preview

Posted on June 16, 2021 at 9:12 am GMT

The Japanese yen has been one of the worst performing currencies year-to-date. The rampant vaccine distribution and signs of economic recovery across the globe has made safe-haven assets less appealing, but the divergence in monetary policies seems to have been a bigger burden for the yen. While several central banks are cautiously preparing markets for a policy shift towards the tightening era, the Bank of Japan (BoJ) has no real motivation to lift its super accommodative policy settings yet. This [..]

Daily Market Comment – Fed to evade taper talk, but watch the dots

Posted on June 16, 2021 at 8:42 am GMT

· Fed likely to steer clear of any discussion about exiting cheap money · But it might pencil in a rate hike for 2023, lifting the dollar a little · Stocks cool after US retail sales disappoint, crude oil off to the races Too early to talk tapering Global markets will have their gaze locked on the Federal Reserve today, which concludes its meeting at 18:00 GMT. No policy changes are on the cards, so all the action will come [..]


Technical Analysis – USDJPY aims to grow bullish after trendline bounce

Posted on June 16, 2021 at 7:13 am GMT

USDJPY stepped on the 20-day simple moving average (SMA) and the ascending trendline and reversed a large part of the latest pullback from a two-month high of 110.32. Concomitantly, the price managed to add a new higher low to the short-term upward pattern which started in late April, flagging that the bulls remain in play ahead of the FOMC policy announcement today at 18:00 GMT. That said, a decisive close above the 110.32 peak is currently required to boost buying interest towards the [..]


US Open Note – Stocks keep modest advance, dollar mostly muted    

Posted on June 15, 2021 at 2:23 pm GMT

Stocks tick up, Retail Sales and PPI data mixed US major indices are perky, with the S&P 500 index and the Nasdaq 100 tiptoeing to new highs and with the Dow Jones industrial index lagging slightly. Improved market mood and falling yields are not providing any assistance to the greenback. The US 10-year yield has pulled back to 1.44%. The dollar index is in the vicinity of its intra-day high of 90.60, and has recaptured minor strength across its forex [..]

Fed meeting: No taper talk, but mind the dots – Forex News Preview

Posted on June 15, 2021 at 1:43 pm GMT

All eyes will be on the Fed when it concludes its meeting at 18:00 GMT Wednesday. It is probably too early for a discussion about an exit strategy from cheap money, but the famous ‘dot plot’ of interest rate forecasts might show a rate hike for 2023. That could lift the battered dollar a little, although any real strength is a story for late summer. Fed to steer away from taper signals The US economy is running on all cylinders, [..]

Daily Market Comment – Wall Street conquers new highs, yen struggles

Posted on June 15, 2021 at 8:45 am GMT

· Tech generals lead stock markets to new all-time highs · Yen suffers as global yields bounce back, dollar quiet · Overall, bonds and stocks send conflicting signals about FOMC Tech stocks back in vogue The party in equity markets continues to rage. The Nasdaq and S&P 500 both hit fresh record highs to kick off the new week, with heavyweight tech names being at the tip of the spear. The price action suggests investors are not particularly worried about [..]


Technical Analysis – USDJPY looks set to gain extra ground above Ichimoku cloud

Posted on June 14, 2021 at 2:17 pm GMT

USDJPY continues to exhibit a short-term neutral-to-bullish tone with buyers now pushing past the 109.84 immediate barrier. The 100- and 200-period simple moving averages (SMAs) are endorsing upside price action, while the 50-period SMA and the Ichimoku lines are not signalling any strong direction but may provide near-term footing to buyers. The technical oscillators are suggesting positive momentum is powering up. The MACD is improving above its red trigger and zero lines, while the rising RSI is growing in bullish [..]

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