Gold prices aimed cautiously lower on Monday. The anti-fiat yellow metal inversely tracked Treasury yields. The 2-year government bond rate rallied by 0.6%. XAU/USD can be quite sensitive to Treasuries, which are partly a reflection of monetary policy expectations. This is due to gold’s inherent lack of yield when holding the precious metal. When the...Read More

The Japanese Yen has found some strength from easing Treasury yields, and they might be the key for USD/JPY in the week ahead. Crucially, Federal Reserve Bank Chair Jerome Powell will be testifying in front of the Senate Banking Committee when he delivers his semi-annual Monetary Policy Report on Tuesday and Wednesday, US time. His...Read More

GBPUSD FUNDAMENTAL BACKDROP The British pound found some support on Friday with UK services data PMI as well as renewed risk appetite after better than expected Chinese PMI figures. The China re-open story has started to gain traction again allowing risk assets like the GBP to flourish. The key theme for next week remains in...Read More

The US Dollar rallied again overnight after hawkish comments from Boston Fed President Susan Collins highlighting that interest rates will need to be lifted and the extent of the rises will be data dependent. Better-than-expected jobless claims also buoyed the mood before Raphael Bostic from the Atlanta Fed tempered the celebrations by suggesting that rates...Read More

The Japanese Yen has been steady so far this week in a period where the US Dollar has broadly weakened against most G-10 peers. The lack of strength in the Yen might be reflecting the perception that the incoming Governor of the Bank of Japan (BoJ) Kazuo Ueda will maintain the ultra-loose monetary policy stance...Read More

The Australian Dollar sunk below 67 cents after 4Q quarter-on-quarter GDP came in at 0.5% rather than the 0.8% forecast and against the previous 0.7% that was revised up from 0.6%. The currency recovered later in the day on solid Chinese data. Annual GDP to the end of December was 2.7% as anticipated reveal more...Read More

The Australian Dollar has consolidated through the early part of this week after tumbling over 2% last week. That move was triggered by the US Dollar roaring higher on perceptions of a more hawkish Federal Reserve. Domestic data released today reveal the underlying strength of the economy going into the end of last year and...Read More

Global market sentiment deteriorated this past week, setting traders up for volatility moving forward. On Wall Street, the Dow Jones, S&P 500 and Nasdaq 100 fell 2.61%, 2.94%, and 3.89%, respectively. Across the Atlantic, the FTSE 100 and DAX 40 sank 1.57% and 1.76%, respectively. Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index fell...Read More

EURO WEEKLY FORECAST The Euro managed modest gains against the US Dollar on Friday, helped in part by news that the Eurozone economy managed some growth at last last month. The S&P Global’s Composite Purchasing Managers Index for the currency bloc climbed to a seven month high of 50.3 in January. That was above both...Read More

The Nasdaq 100 rallied at the cash open as solid corporate earnings from chipmaker Nvidia bolstered positive sentiment, but optimism was short-lived as sellers quickly returned to fade the strength in the equity space amid Fed jitters. In late afternoon-trading, the tech index, however, resumed its advance, but wild intraday fluctuations suggest traders are reluctant...Read More