FX

XAU/EUR recovers some of its weekly losses, barely up 0.01.%. Falling German 10-year bunds and German Real Yields keep the EUR pressured to the downside. XAU/EUR: Tilted to the upside, as long as it remains above €1,575. Gold (XAU/EUR) vs. the euro trims some of its weekly losses, advances 0.01%, trading at €1,596 during the

In opinion of FX Strategists at UOB Group, the recent price action in EUR/USD opens the door to further decline to 1.1160 in the next weeks. Key Quotes 24-hour view: “Our expectations for EUR to ‘trade sideways’ was incorrect as it plummeted to 1.1184 before closing on a weak note at 1.1197 (-0.44%). Further weakness

GBP/USD extends to four days its fall, down almost 1.5%. Risk-off market sentiment dented the prospects of risk-sensitive currencies like the British pound, favors the greenback. The US Dollar Index is closing to 97.00 after the renomination of Powell amid positive US jobs data. The British pound continues its free-fall, down for the fourth consecutive

Silver holds onto corrective pullback around monthly low. Descending Momentum line, sustained break of two-month-old support favor sellers. 100, 200-DMA add to the upside filters, nears eye 23.6% Fibonacci retracement level. Silver (XAG/USD) pares intraday losses around $23.60 during early European morning on Wednesday. The bright metal bounces off 50-DMA but the rebound fails to

XAU/EUR fell below its 21DMA at €1586 on Tuesday as Eurozone real yields rallied. Hawkish ECB commentary was the catalyst for the rise in yields, after markets reacted hawkishly on Monday to Powell’s renomination. Euro-denominated spot gold (XAU/EUR) prices tumbled beneath their 21-day moving average at €1586 on Tuesday, taking losses on the week to

Palladium consolidates the biggest daily losses since September at monthly low. Clear break of seven-week-old trend line, bearish MACD signals favor sellers. Ascending resistance line from September, 100-DMA challenge bulls. Palladium (XPD/USD) traders lick their wounds around November’s low while picking up bids to $1,971 ahead of Tuesday’s European session. Although multiple lows marked during

The S&P 500 printed fresh record highs in the 4740s as investors cheered Fed Chair Powell’s reappointment. The Nasdaq 100 was initially higher, but downside in growth names amid higher bond yields has pulled the index lower. US stock markets rallied to fresh record highs as investors cheered the appointment of Fed Chair Jerome Powell

Liu Shijin, an advisor to the People’s Bank of China (PBOC) warned on Monday, the Chinese economy could enter a period of ‘quasi-stagflation’. Key quotes “China’s economy could enter a period of “quasi-stagflation” with relatively slow growth and excessively high producer-price inflation.” “Such a scenario is “very likely” if demand remains weak, producer prices stay

GBP/JPY pulled back sharply on Friday amid a broader downturn in risk sentiment, but found good support in the mid-152.00s. The pair may well struggle next week if risk appetite continues to worsen and it breaks key support. GBP/JPY came under pressure on Friday, dropping back from Asia Pacific levels close to 154.50 to as low

XAG/USD finishes the week on the wrong foot, despite falling US bond yields. XAG/USD plummeted in the day as risk-off market mood boosts the greenback. Fed’s Waller and Clarida would like a faster bond taper. XAG/USD Technical outlook: An inverted head and shoulders target the $28.20-30 range. As Wall Street closes, silver (XAG/USD) finished the

GBP/USD Weekly Forecast: Can growth prospects beat bears’ technical stranglehold? US data eyed Three top-tier UK releases, three higher than estimated results. Alongside an improved market mood that somewhat weighed on the dollar, GBP/USD has been able to find a bottom. The focus is firmly on US data, but also Brexit and covid headlines are

Vice Chair of the FOMC Richard Clarida said on Friday that it “may very well be appropriate” to discuss accelerating the pace at which the Fed is winding down its bond-buying programme at the December policy meeting. Speaking at the San Francisco Fed’s 2021 Asia Economic Policy Conference, he added that there are upside risks to inflation,

Bond yields have moved sharply lower on Friday amid a bid for haven assets as Europe heads for lockdown. The US 10-year Treasury yield is now back to the low 1.50s%. US bond yields saw a sharp drop on Friday, the primary catalyst for which was a continued ramp up in concerns about lockdowns in

Gold bulls are showing up in Asia as the trade starts to pick up.  US dollar is also making tracks across the forex board as traders await keynote speeches from central bankers.  Update: Gold price is looking to reverse Thursday’s drop, as it flirts with daily highs above $1,860, shrugging off the advance in the

Canadian dollar falls versus its main rivals on Thursday. USD/CAD extends rally, firm above 1.2600, now looking at 1.2655. Risk aversion boosts the greenback versus commodity and emerging market currencies. The USD/CAD accelerated to the upside on the back of a stronger US dollar and climbed to 1.2645, reaching the highest level since October 6.

GBP/JPY remains depressed, extends previous day’s pullback from two-week top. Seven-week-old support line, 61.8% Fibonacci retracement on bear’s radar. Buyers need validation from 38.2% Fibo. level to retake controls. GBP/JPY extends the previous day’s bearish bias towards breaking the 154.00 round figure heading into Thursday’s London open. In doing so, the cross-currency pair tests 50.0%

WTI has turned lower in recent trade, breaking out to fresh daily lows despite a bullish inventory report. The report has perhaps been interpreted as increasing the likelihood that the Biden administration taps the SPR. Front-month futures of the American benchmark for sweet light crude oil, West Texas Intermediary or WTI, have traded on the

The UK CPIs Overview The cost of living in the UK as represented by the Consumer Price Index (CPI) for October month is due early on Wednesday at 07:00 GMT. Given the recently strong employment data, coupled with the Bank of England’s (BOE) emphasis on CPI to dial back the bond purchase, today’s inflation numbers