With an impending ECB decision that could widen the interest rate gap between the UK and the Eurozone we look to EURGBP for possible trades. Note that on a weekly scale we are at a support level that has been tested repeatedly since last year around the 0.84900 region. A rate cut by the ECB…
Today’s key event for financial markets will be the ECB’s Monetary Policy Statement and Interest Rate decision at 1215GMT. The move to cut rates by 25bps has largely been telegraphed with the Main Refinancing Rate seen easing to 4.25%. Among the currencies we note that there appears to have been little pricing in of the…
The recent pullback among the yen pairs has likely cleared a good number of carry trades allowing us the opportunity to rejoin the game from better prices levels. None there less we do have rate decisions coming from Canada and Europe today and tomorrow with consensus calling for rate cuts suggesting it will be more…
The Bank of Canada widely telegraphed to cut its Overnight Rate by 25bps today at 1345GMT. We find it interesting that USDCAD has thus far failed to price in the move having been stuck in a consolidation the past two months. Should the BoC proceed with the expected cut we will be looking for a…
Though also firmer Gold was not quite the big winner against the dollar with XAUUSD still stuck in its range play from last week. For now market is waiting for the next big catalyst for a test of the new historic highs though the more we see inflation metrics easing globally and geopolitical tensions getting…
Bitcoin has been seeing tighter and tighter daily ranges even as research shows continued strong interest in the crypto space with trading volumes expanding. Latest news in the space highlights crypto’s wild wild west environment with DMM.com reportedly losing some $300 million in crypto assets. For now we continue to see sector rotation weighing on…
Just when we thought Oil was beginning to price in the summer driving season in the US the brief push past its May consolidation highs was reversed as it spent the rest of the previous week easing. By the close Friday we actually had a bearish candle for May. Over the weekend we had an…
Euro is up for a big week with an ECB Meeting on Thursday and a largely telegraphed 25bps cut. Putting things into context we have been seeing a mostly sideways market the past three weeks and before that pushed higher since the middle of April. This to us suggests there will be scope to react…
Cable saw a modest bounce Thursday following its sharp sell-off on hawkish talk for the US the day prior. We have little to watch out for out of the UK today though US Personal Consumption Expenditure data is worth keeping an eye on given that it is actually the Fed’s preferred gauge of inflation given…
Gold has been stuck on a range play since the failure to follow through on its sell-off from new historic highs. As previously mentioned the much of the surge in Gold may be attributed to two factors, central bank demand, and hedging against inflation. While Central Banks are unlikely to suddenly stop buying, we note…