We started the week with a big sell-off in oil, retreating down to the consolidation floor of late June. Seasonal cycles however suggests oil as a buy on any dip to a good support given the on going US driving season. Underscoring this is the drop in Crude Oil prices by 3.4 million barrels as…
The British Pound has been one of the major beneficiaries of the perceived turn on sentiment by Fed Chairman Jerome Powell from last week. In the span of a week the currency has seen almost the full range of price action from June, coming up just a little bit short of the high for the…
Much like the rest of the majors the Euro has been buoyant against the dollar since a dovish sounding Fed Powell the prior week. Brain trusts have been widely speculative since withe the more extreme coming from a Citibank analyst calling for 8 rate cuts in succession. For today we have another appearance from Mr….
Gold rallied Friday after a very tight consolidation following its triangle breakout Wednesday. Given the push past our SHS Right Shoulder we have now invalidated the bearish reversal pattern. That said note that demand wise we may be seeing suggestions of a top still with the PBoC apparently absent from the market for the last…
Gold saw demand kick in early in European trade buoyed by demand from buy on dippers and the persistent geopolitcal tension. Poor releases out of the US merely served to underscore this bullish tone as it argues the potential for an early rate cut. Still the Fed is not known for reacting to single data…
Market players were largely caught off guard with how the dollar responded to a weak read in US ISM Manufacturing numbers, falling short of consensus at 48.5 against hopes of an improvement to 49.2, a contraction still yet less so. For today we have little of note coming out of the UK with market players…
Bitcoin players are facing an interesting dilemma the next fews days, follow historical cycles or be realistic and look at supply and demand. July is largely seen as a period of rebound for BTC if we are to look at charts. This however may be dampened by the Mt. Gox bankruptcy story which could flush…
Seasonal factors will likely be the main driver for oil over the next month or two, i.e. US driving season providing real demand for black gold. That said we will not discount the potential effects of monetary policy to this picture as an upcoming easing cycle may just convince people there will be good time…
Right Wing politics appears to be good for the Euro with opening gaps against the rest majors Monday. Note elections in France saw Marie Le Pen’s far right National Rally headed for a slight majority suggesting French centered and anti-immigration politics, this appears to be inline with the growing strength of the right across Europe….
Gold’s attempts at a rally has repeatedly faltered with geopolitics having limited impact absent any actual shooting among major powers. Hope’s that an easing cycle would provide a further lift has also been dashed as the Fed continue to sound hawkish bucking the trend among other central banks. Absent anything new to ignite demand we…