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…
As we approach the release of Eurozone inflation data for May, market participants are keenly assessing potential impacts on the European Central Bank’s (ECB) monetary policy decisions. With the latest figures set for release on May 31 at 0900GMT by Eurostat, expectations are set for a slight uptick in inflation, which, while modest, provides critical…
We have long been a fan of the carry trade but after a month of steady gains it is worth reassessing considering the next set of policy meetings beginning next week on Thursday for the ECB. Note that there is increasing expectation of a move by the ECB this time around which with the three…
Was it the charts or is it the news? What ever the underlying reason for yesterdays marubozu one thing thats clear is Euro’s upside is now likely capped. At a time when people keep speculating on when rate cuts will start what we know is the FOMC dynamics has shifted to a latter than sooner…
Bitcoin has been unable to find fresh wind ever since poor US data fueled the surge to 71911. News wise crypto in general continues to see market cap expand though the failure to push any higher in the grand daddy of crypto suggests two things, much of the fresh money is coming from the retail…
Brent Crude closed just under its May range play ceiling and is currently consolidating just above the region. With the upcoming driving season our bias for oil moving forward is for further upside. Though moving past the years highs will be unlikely without any further catalyst. Note that beyond cyclical factors demand for oil remains…
Cable has been riding the wave of reassessment over rate cut speculations following last Wednesdays stronger than expected CPI read at 2.3%. This was reinforced by signs of a recovery in manufacturing with the Flash PMI at 51.3 above the 50 neutral point. From expectations of a rate cut in June market is now pricing…
Gold saw a sharp sell-off following the release of the US FOMC minutes suggesting a shift in bias among its member and more delays in US easing. The sharp drop to us suggests that despite the talk of demand from Central Banks for the yellow metal, the latest surge is not about hedging against inflation…
Euro managed to pick up Friday after spending the past week on a steady decline. The move strangely comes as US Durable Goods came in stronger than consensus and a dearth of Eurozone data. Ahead is another quiet day for Eurozone economic data though we look at CB Consumer Confidence in the US as a…
