The Fed took a pause in hiking rates but the greenback rallies. After eight sessions of strength, the ascent stalled, however demand reemerged quickly and took the currency to fresh highs. So what’s behind the USD strength after all? Essentially, it’s more weakness in other currencies rather than dollar appeal. It is just ‘best of a bad bunch’ as, for...
Gold extends a gradual ascent on Wednesday but the dynamics still looks unsustainable. This is not surprising, considering a widespread investor optimism over trade talks in Beijing and arrangements in Congress to avoid another shutdown. The bullion stays above the $1,300 psychological support but fails to make a sustained break above $1,315. The dollar saw...
The Reserve Bank of New Zealand rate decision on Wednesday will attract market attention, as NZDUSD has been trading at three-week lows marginally above the 0.67 figure. It is widely expected that the central bank will take a more dovish tone, citing risks at home and abroad. RBNZ survey for the first quarter of 2019 showed that 1-year inflation expectations...
The greenback had a fruitful week, with the US currency has decently appreciated against most rivals. Safe haven demand was the key driver as investors continue to assess global growth prospects and further price in lower activity in major countries. The trade-related fears reemerged as well, which gave the additional lift to the dollar. Despite the recent...
Crude oil prices resumed the downside move after a brief pause and could threaten the psychological support of $60 should the selling pressure persist. Brent is attempting to cling to the $61 handle but considering the general risk-off tone in the global financial markets, bearish risks could overweight in the short term. Risk appetite soured as a senior US...
Gold extends losses from last week’s highs and holds at fresh one-week lows registered on Thursday around $1302. As such, the precious metal has settled within striking distance from a psychologically important support at $1300. The bullion now faces a stark choice: to hold above this level or to speed up its bearish correction on a break lower. The selling...
The common currency extends its pullback after the earlier rally above 1.15. EURUSD has been losing ground for a third day in a row. On Tuesday, the prices managed to hold above the important psychological level of 1.14 but today, the sellers pierced this handle, which points to a risk of an even deeper correction. The euro zone reports continue to...
GBPUSD extends its pullback from highs above 1.32 registered last week. The pair has settled around the 200-DMA at 1.3040 which caps the downside pressure so far and prevents a dip below the psychological level of 1.30. The dollar shifted to a recovery mode on Monday and preserves the bullish bias today, which adds to the local pressure on the pound. The...
AUDUSD declined on Friday after a strong US jibs report lifted the greenback marginally across the board. The pair remains under some pressure at the start of a new trading week as the USD receives another mild boost from the latest labor market data. The US non-farm payroll grew 304k in January, well above expectation of 165k. But the previous figure was...
After a rally amid a widespread dollar sell-off following a more cautious Fed’s stance at the meeting, the euro capitulated much of the previous gains and turned negative on Thursday. The common currency resumed the ascent today but the impetus looks too modest to bring the pair back above 1.15. The key reason behind the latest bearish correction in the...
The euro is rising for a fifth week in a row, encouraged by weaker dollar and better risk sentiment. The greenback continues to digest the Fed’s dovish message on rates. Powell, who is particularly careful about the message he sends markets, confirmed that the central bank had softened its stance and will take a pause in hiking. Despite a softer tone was...
Global investors are awaiting the outcome of the FOMC’s January policy meeting. Stocks and currencies are muted ahead of the important verdict. While nobody expects any changes in the rates, the estimates of the potential rhetoric by the Federal Reserve differ. Against the backdrop of the latest speculations, one of the key issues for markets is the possible...
As was widely expected, the United States sanctioned Venezuela's state-owned oil company, in an effort to put more pressure on Maduro and oust him from power. The restrictions block about $7 billion in PdVSA assets. The American companies have until March 29 to wind down operations with PDVSA. However, crude oil markets have barely reacted to the measure. On...
The greenback that suffered steep losses on Friday and remains mainly on the defensive at the start of a new trading week, will have a critical test in the days to some. The FOMC meeting and the NFP employment report will set the tone for the major currency pairs in the short term. Investor concerns over the US GDP and the global economy in general make the...
What is going on with the European currencies now cab be clearly seen in the GBPUSD dynamics. The cross has lost more than 3% over the last ten trading days and touched a May 2017 low marginally above 0.86 on Friday. It looks like the pair has found a local bottom at this level as the euro turned positive on the day during the European session. However, the...
The greenback turned higher against major rivals on Thursday with traders switched to some profit-taking in the European currencies. As for the cable, the technical correction is due to overbought conditions. The pound was rejected from mid-November highs around 1.31 and got back below the 200-DMA that was eroded yesterday for the first time since April 2018....
Gold prices rose on Tuesday due to a widespread risk aversion amid the lingering concerns over global growth. The incoming economic data continue to signal that the global GDP is losing steam, which fuels demand for the precious metal since December. The decline in 10-year US Treasury yields was the largest since early January played into the bullion’s hands as...
The AUD/USD recovery after the flash-crash from January 3 has stalled above 0.72, where the pair encountered a local resistance area. The price was rejected from a mid-December top and dropped to two-week low of 0.7120 on Tuesday. By the way, the move down is rather measured and gradual due to a muted USD demand amid the ongoing US government shutdown and a more...