Sentiment Dives on Covid Woes, JPY Benefits
Risk aversion was prevalent is the Asia-Pacific session, after WHO warned yesterday about a new COVID-19 variant, with the Japanese Yen emerging as the main beneficiary
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Risk aversion was prevalent is the Asia-Pacific session, after WHO warned yesterday about a new COVID-19 variant, with the Japanese Yen emerging as the main beneficiary
Various members of the US central bank have been making hawkish remarks lately, fueling the Dollar’s advance, while yesterday’s minutes form the last policy decision were also on the hawkish side
The Primary Trend The EURUSD monthly below (chart 1) has charted a lower peak followed by a lower trough - the classical definition of a downtrend. Due to the longer time scale, the primary trend for EURUSD is down. Until there is a change in the pair's primary trend, impulse moves down will be stronger than corrective moves up on the lower time frames. The stochastic is heading towards the…
The pair has entered its fourth losing week and extends its losses today, despite some containment of the US Dollar’s strength
The pair has clearly been having a very bad month, with Fed/ECB monetary policy divergence being a key driver, registering today new 2021 lows
The pair rose to its highest levels since March 2017 during the Asia-Pacific session, but has since declined, weighed by the slide in US Bond Yields
The Reserve Bank of New Zealand (RBNZ) hiked rates for a second time in a row, bringing them to 0.75%, but the pair reacted lower, as the move was largely expected
The Turkish lira has capitulated over the last two months. In this article, we will consider a basic monetary economic model to explain the USDTRY's movements over this time frame. The Quantity Theory of Money One of the earliest models of monetary economics is the quantity theory of money (QTM). It can be traced back to Copernicus in the 16th century but was popularised by Friedman and Schwartz in the…
Past Performance: Past Performance is not an indicator of future results. The blue vertical is the beginning of November. The precious metal started the month poorly. By the 3rd of November, gold was down about 1.3% (month open to low). However, it charted a reference trough, and almost 48 hours later, it charted the required reference peak. With these two points as an anchor, the precious metal charted a series…
Introduction Since the pandemic high of 2020, the USDOLLAR has followed a structured cycle. There are four distinct phases. 1. Distribution phase. 2. Mark-down phase. 3. Accumulation phase. 4. Mark-up phase. Past Performance: Past Performance is not an indicator of future results. Distribution Phase This phase was uncharacteristically quick. As the pandemic unfolded, margin calls and the demand for dollars by debt-laden emerging economies drove the USD price up. However,…
The pair runs the fifth straight profitable week, after yesterday boost from Mr Powell’s re-nomination, while on a monthly level, November is on track to become the best of the year
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