GBP and EUR look set to continue their bullish runs against the flailing AUD, whilst AUDUSD may have run its course (for now) on the downside.

There was no surprise in hearing RBNZ had decided to hold, yet traders had hoped for a slightly more hawkish statement, not the dovish one presented due to a pickup in CPI data.   Summary of RBNZ's May 2017 monetary policy statement RBNZ left the Official Cash Rate (OCR) unchanged at 1.75 percent Core CPI…

We had flagged the potential for producer prices to dip yet there are additional signs this could be the beginning of a larger move lower. USDJPY continues to look bullish as it heads back above 114 for the 2nd session this week. Where producer prices missed, consumer prices tried to make up today to narrow…

The US Dollar Index (DXY) climbed to a 12-session high overnight, helped by weaker commodities, softer Euro and hawkish comments from the Fed. Kaplan thinks the Fed could trim their balance sheet this year without it affecting his anticipated three hikes. DXY came close to breaking the 2014 bullish trendline following Macron’s victory on Monday,…

The close of VIX gathered a lot of attention from the media as it passed another milestone of eerily low volatility, despite being another action-packed year. Whilst at some point it is poised to break sharply higher, we note the relationship between good data and low volatility. Everyone is paying attention to the fear index…

WTI's strong rejection of the lows takes us back inside the lower bollinger band whilst USDCAD struggles to re-test the highs, leaving potential for a counter-trend trade to be considered.  

RBNZ find themselves in a renewed tricky spot; Whilst fundamentals have improved they still have an irritatingly high currency at a time when select trade partners appear on the brink of further depreciation.   Electronic card retail sales expanded 1.1% in April compared with -0.3% prior, whilst expanded a respectable 4.5% YoY versus 5.6% prior.…

The German industrial output data for March edged higher with the print coming in at -0.4%. This is much better than the forecast of -0.7%, mainly due to lower energy prices and bolstered global demand. On a less bright side, the German investment good output fell 1.2% from the previous number.  All in all, we…