Daily Market Bulletin – 27 December 2021
Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events
Page 82 of 97
Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events
Initial jobless claims came in at 205K, slighter higher than the 200K expected, and were constant week over week. At the same time, core durable goods and core PCE were released, with both numbers beating consensus. Core durable goods m/m printed at 0.8% (0.6% - forecast) and core PCE m/m was 0.5% (0.4% - forecast). The dollar has been under pressure this week, but these provided some support. FXCM's USDOLLAR…
USDOLLAR Trading Range FXCM's USDOLLAR basket has been moving sideways since the end of November (blue rectangle). Moving averages are trend-following indicators and are inclined to give whipsaw signals when the price is ranging (aqua ellipses). We note that the quicker green moving average has just crossed above the intermediate orange moving average (blue arrow). This aligns the moving averages bullishly, and if they develop angle and separation will be…
The top chart below shows the H4 relative strength ratio between FXCM's USDOLLAR basket and gold (XAUUSD). The ratio started to fall last week Wednesday (blue dashed vertical). I.e., the greenback was declining against the precious metal. The catalyst here was the spread of the omicron variant, and gold's regard as a safe haven. We do note that the EMAs and stochastic are rolling over (red ellipses), which may suggest…
The Turkish lira strengthened by as much as 15% after President Erdogan announced a plan to guarantee local deposits against market volatility. Accordingly, the government will pay the difference between the value of savings in lira and equivalent dollar deposits. The market has been heavily short lira, and the jump in value is likely a short squeeze. Moreover, the weekly chart's overbought condition has now been normalised (blue rectangle). The…
Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events
Central banks dominated this week, with the Fed speeding up its QE tapering, Bank of England surprising markets once again and ECB announcing reduction in asset purchases, while maintaining its dovish stance
The pair steadies after two profitable days and intense central bank activity, unfazed by today’s Eurozone CPI figures
The Turkish lira dropped to record lows against the dollar after its central bank lowered its repo rate by 100bps to 14% yesterday. This is despite an inflation rate that has surged in 2021 to above 17%. Moreover, the inflation rate has ticked up in recent months after the bizarre implementation of monetary policy, which flies in the face of traditional economic theory. The weekly chart below displays the capitulation…
Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events
The Bank of England (BoE) decided to raise interest rates for the first time since the pandemic, in the face of surging inflation
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