EUR/JPY could extend rally as German-Japan yield spread widens
EUR/JPY tracking German-Japan yield spread
Market Analysis
USD/CAD bottoming out?
Thanks to the rising US bond yields, a number of major FX pairs have recently reversed their trends. The USD/CAD has so far resisted the US dollar’s pressure because of rising oil prices (Canada’s major export commodity). But if the US dollar continues to rise against other currencies, the downtrend for the USD/CAD will likely …
DAX prints reversal signal
On Wednesday US tech stocks sold off, as a surge in bond yields weighed on sentiment. Investors dumped stocks with stretched valuations. The weakness has continued into Europe today and judging by the price action on the major indices, we could be heading towards some volatile times. Among the major indices, the German DAX has …
EUR/CHF Resurrection: Advantages of Entering Before Breakout
Waiting to pull the trigger is important under certain conditions, especially when you are not so sure about the directional bias. But if you have a strong conviction about something then why wait? Indeed, you can double up when you are proven right.
EUR/CHF about to pop higher?
The EUR/CHF is a forgotten currency pair and rightly so because it hardly moves. So why bother writing about it? Well, I think it is about to start trending higher again and become more active. Don’t expect it to behave like Bitcoin or the Dow, but it should provide a good, stable, trade for the …
Thoughts on EUR/USD at 1.20ish
The EUR/USD has finally dipped back to long-term support around 1.20ish and I see a lot of bearish commentary around it. The bigger picture is still bullish as per the weekly chart, so I will be actively looking to go long on the first sign of a bull signal on the daily or lower time …
CAD/JPY could follow GBP/JPY lead and break higher
Thanks to ongoing risk-on and reflationary trades, stock and crude oil markets extended their gains on Thursday, while safe-haven Japanese yen and gold sold off. The USD/JPY was among the best USD pairs, while other yen pairs also rallied – most notably, the GBP/JPY thanks to a hawkish Bank of England. Investors are now looking …
CAD/JPY could follow GBP/JPY lead and break higher Read More »
Gold and silver defending key support levels
Following last week’s big sell-off, gold and silver have both managed to cling on to their respective key support levels as investors weigh conflicting macro factors. With the recent rebound in bond yields, the outlook on the metals have become a little uncertain, but I am still of the view that both will rise further …
Has GBP/USD cleared the way to 1.40?
The pound could be among the best-performing currencies in 2021 now that a no-deal Brexit has been avoided. With the UK also being among the first countries to roll out the Covid vaccines, I reckon the economy could rebound sharply once lockdowns end. Forward-looking investors are thus likely to buy the dips in the pound. …
Gold testing KEY support
Will it hold or fold? Gold and silver have dropped sharply today as investors chose to put their money in the racier equity markets instead, owing to speculation that a Democratic sweep in the Senate could usher in further fiscal support for the economy. The dollar rebounded and yields rose, causing non-yielding precious metals to …