Gold Outlook: Gold Capitalizing on USD's Weakening

Gold’s price was on the rise for the past few days as the greenback tended to weaken. The negative corelation of the two trading instruments came once again on display, as the precious metal is denominated in USD. It should be noted that the weakening of the USD initiated again after the Fed’s interest rate […]

Bank of England Ponders a More 'Forceful' Rate Hike

The Bank of England is widely tipped to raise interest rates for the sixth straight meeting on Thursday (11:00 GMT). But there is a bit of uncertainty about the size of the hike as policymakers are considering stepping up the pace of rate increases to 50-basis-point increments as inflation continues to run wild in the […]

Dollar Awaits Nonfarm Payrolls as Recession Worries Mount

With the US economy teetering on the edge of recession, all eyes will be on the latest employment data at 12:30 GMT Friday. Another solid jobs report is expected, yet various indicators suggest the labor market has started to lose steam. While a disappointment could extend the latest retreat in the dollar as markets price […]

NZ First Impressions Labour Market Update June 2022 Quarter

The New Zealand labour market remains extremely tight. While the unemployment rate rose slightly to 3.3%, the other details point to major capacity constraints and intensifying pressure on wages. Key results Unemployment: 3.3% (Prev: 3.2%, exp: 3.1%) Employment: Flat (Prev: +0.1%, Exp: +0.4%) Wages (LCI, private, ordinary time): +1.3% (Prev: 0.7%, Exp: 1.1%) Commentary The […]

Dollar Flourished; First on Risk-off, Then as (US) Yields Surged

Markets Pelosi’s visit to Taiwan provoking the ire of China dominated most of the European trading session. Risky assets including equities were sold while safe havens enjoyed a good bid in your typical risk-off market reaction. However, even before Pelosi’s plane had yet to land on the self-governing island, planned in early US dealings, the […]

BoE Interest Rate Decision: Forecasters Can't Make Up Their Minds

Ahead of tomorrow’s BOE interest rate decision, a somewhat unique and interesting situation has cropped up. Most relevant for us traders is that it could mean there will be a strong reaction in the pound no matter what the BOE does. According to the latest survey of economists by Reuters, the consensus is that the […]

US-China Tensions Add to Market Unease

Risk assets are attempting to shake off the recent spike in US-China tensions, with Asian stocks and US futures looking to have found a more solid footing after a wobbly start to August. As if there wasn’t enough to deal with already, amid persistent uncertainty over the pace of US rate hikes and global recession […]

New Zealand Dollar Stems Bleeding

The New Zealand dollar has edged higher today. In the European session, NZD/USD is trading at 0.6261, up 0.11% on the day. NZD/USD took a tumble on Tuesday, as nervous investors waited to see if Nancy Pelosi would indeed visit Taiwan, despite furious threats from China. The New Zealand dollar slipped 1.24%, its worst daily […]

Pound Edges Higher, Markets Eye BoE

The British pound is in positive territory today and briefly climbed above the 1.22 line. In the European session, GBP/USD is trading at 1.2185, up 0.18% on the day. Will BoE tighten by 50bp? The Bank of England meets on Thursday, and a 50bp hike looks likely, especially after hints from Governor Bailey to that […]

Both Dollar and Euro Performed Mixed Against G10 Peers

Markets FOMC member Bullard join the hawkish parade kickstarted by Daly, Mester and Evans yesterday. This morning he reiterated his views of a policy rate at 3.75-4% by the end of the year and said there’s a need to get into more restrictive territory. During early US dealings he doubled down in another speech, saying […]