Category: Liquidity

September 27, 2022

The British pound stabilized in Asian trading on Tuesday after plunging to a record low a day earlier, as the Bank of England and the British government tried to soothe markets nervous about a volatile U.K. economy. The instability began […]

September 27, 2022

EURO FUNDAMENTAL BACKDROP The euro found some support this Tuesday after a poor performance against the greenback yesterday. The euro remains vulnerable to downside risk as fundamental headwinds significantly outweigh any sort of positivity at the moment as the eurozone […]

September 23, 2022

Gold has been stuck in a rut for the last week with any attempted break higher met with more forceful opposition. Gold is battling higher US Treasury yields, especially in the interest-rate sensitive short-end, that continue to dull the allure […]

September 22, 2022

Thursday’s Asia-Pacific Outlook The US Dollar surged higher against its major peers during New York trading hours. The Federal Open Market Committee (FOMC) announced a 75-basis point rate hike and updated its growth and inflation forecasts. The FOMC’s Summary of […]

September 20, 2022

WAITING ON POWELL Like most other assets this week, silver prices have seen subdued price action in the run-up to the September Fed meeting. Questions remain over whether or not Fed Chair Jerome Powell and the FOMC will deliver a […]

September 20, 2022

EURO FUNDAMENTAL BACKDROP The euro has managed to pull itself above parity once more against the greenback despite quite shocking German PPI data for August (see economic calendar below). EUR/USD ECONOMIC CALENDAR Looking at the PPI comparison with and excluding […]

September 19, 2022

Gold slipped again today as the US Dollar found some traction with Treasury yields maintaining lofty levels going into a busy week for central banks. The non-yielding precious metal is below us$ 1,670 at the time of going to print. […]

September 16, 2022

Can a ‘Neutral’ SNB Provide Sterling with a Reprieve? The latest comments from the Swiss National Bank (SNB) appear to be rather balanced ahead of Thursday’s rate setting meeting. SNB Governing Board member Andrea Maechler commented earlier this month that […]

September 15, 2022

XAU/USD FUNDAMENTAL BACKDROP Gold looks to test July swing lows today after yesterday’s U.S. inflation ‘hangover effect’ seems to have dissipated. The U.S. dollar is bid once more weighing negatively on bullion due to renewed market anticipation of a large […]

September 14, 2022

EURO FUNDAMENTAL BACKDROP Yesterday’s U.S. inflation beat so global markets reverse expectations around a less aggressive Federal Reserve bringing the EUR/USD currency pair all the way back below parity. The previous hawkish meeting by the European Central Bank (ECB) was […]

September 13, 2022

The Euro has mostly held onto recent gains as the European Central Bank’s Isabel Schnabel reiterated hawkish weekend comments by fellow ECB board member and Bundesbank President Joachim Nagel over the weekend. The single currency was further aided by the […]

September 6, 2022

The recent sell-off in the precious metal is taking a breather after testing, and rejecting sub-$1,700/oz. levels at the end of last week. US Treasury yields remain at elevated and multi-year high levels, while the US dollar continues to hit […]

September 2, 2022

The Japanese Yen is trading at a fresh 24-year low against the US dollar as the short-term yield spread between the two countries continues to widen. Two-year Japanese bonds are currently trading with an 8bp negative yield, while the US […]

September 2, 2022

GOLD PRICE TALKING POINTS The price of gold is on the cusp of testing the yearly low ($1681) as it extends the recent series of lower highs and lows from earlier this week, and a move below 30 in the […]

August 31, 2022

Bitcoin, Ethereum and tech stocks are trading higher after a positive day for risk assets. With Eurozone inflation showing no sign of easing, another heated CPI print has placed additional pressure on the ECB (European Central Bank). As both the […]

August 31, 2022

THE ALBATROSS IS BACK Gold prices have been struggling in the wake of Fed Chair Jerome Powell’s speech on Friday. As observed in the weekly gold price forecast, “rising sovereign bond yields (not limited to US Treasury yields) and a […]

August 30, 2022

Gold’s all-time-high, in terms of USD, was set a little more than two years ago. At the time the liquidity cannons were at full blast in the United States and gold prices put in an astounding 44% run from the […]

August 30, 2022

EUR/USD RATE TALKING POINTS EUR/USD continues to hold above the December 2002 low (0.9859) as it trades within last week’s range, and fresh data prints coming out of the Euro Area may generate a rebound in the exchange rate as […]

August 29, 2022

XAU/USD FUNDAMENTAL BACKDROP Spot gold extended its move lower this Monday now looking at testing July swing lows. The USD hit fresh 20-year highs pressing negatively on the yellow metal. The rates market has overshadowed all other variables at this […]

August 24, 2022

The dollar eased while U.S. and European stocks edged higher on Wednesday ahead of a speech at the end of the week by Federal Reserve Chair Jerome Powell that may signal a reaffirmation or a “pivot” from an aggressive policy […]