China’s currency hit its strongest level this year after the PBOC guided it sharply up Monday against a wave of uncertain global financial markets. The yuan hit a 2016 high after the central bank set its official midpoint rate sharply stronger against the dollar and the central bank governor tried to bolster the currency. The…
See how retail traders are positioned in the Yen with the DailyFX SSI. The Yen slightly fell and then quickly rallied against the US Dollar after Japan’s soft GDP statistics crossed the wires. The fourth quarter preliminary print was a contraction of 0.4 percent, lower than the -0.2 percent expectation and the prior’s reading of 0.3…
Following a modest retail sales print on Friday, the US Dollar was seen posting a correction and by early Asian trading, most of the USD Crosses are pulling back off their recent highs. The correction however only signals a pullback to the trends which are likely to be established provided prices manage to find support…
With almost nothing to move the markets during the session on Monday, we believe that it will be a very technically driven session. Because of this, the markets should continue to follow the overall trends, and that opens up quite a few trading possibilities. 1 – Although energy markets are starting to show signs of life, we…
Despite the weakening of the Yuan, China exports collapses 6.6% YoY in January (massively missing the 3.6% increase expected). Imports continued their 15 month series of collapses with a 14.4% plunge (again drastically worse than the 1.8% increase expected). This pushed the trade balance to a record surplus CNY406bn. In Yuan terms it’s ugly… Both imports and exports…
Did you know that there are more than 1.8 trillion dollars worth of junk bonds outstanding in the United States alone? With interest rates at record lows all over the world in recent years, investors that were starving for a decent return poured hundreds of billions of dollars into high yield debt (also known as junk bonds)….
Again, we had another big drop in the dollar this week. No, we don’t mean against the dollar derivatives known as the euro, pound, etc. We mean by the only standard capable of measuring it: gold. The dollar fell 1.4 milligrams, to 25.1mg gold. Or, if you prefer, 0.1 grams of silver. For some reason,…
The US dollar has been on its back foot for quite a while, suffering from weakness in the US economy among other issues. Can this turn around though? Here is an explanation from CIBC: Here is their view, courtesy of eFXnews: The fed funds futures curve is now essentially flat, with market-based expectations pointing to…
Equity markets descended in January alongside oil prices, while testing new lows with a visible increase in volatility. Oil’s dramatic price drop has been a catalyst for stock prices heading lower, a so-called correlation that has actually existed for years. There are various theories as to how oil and stock prices might be correlated, yet…
by Michael Haltman Did Janet Yellen raise the fed funds rate in December only to turn around and lower it now? With the selloff in the equity market, sharp decline in the price of crude oil and uncertainty surrounding the U.S. and global economies, the LAST thing we need is for a crisis of confidence to develop…
