The biggest take from the outlook report and policy statement is there is unlikely to be a need for tightening any time soon. Nikkei appears set to retest the highs yet price action on USDJPY suggests it may be a fruitless attempt. BoJ provided a more upbeat view of the economy from prior meeting Policy…
Read moreThe long-term bullish wedge is playing out nicely and, even if it fails to reach the target in the year/s ahead, we remain confident the near to medium-term should provide bullish opportunities. The French elections, where a vote for populism didn’t dominate, provided the catalyst to send EURNZD hurtling higher. We had highlighted the bullish…
Read moreThe European Central Bank's job is to keep the Eurozone intact, promote growth and reduce unemployment. Higher unemployment and lower GDP growth rates are the ideal foundations for the spread of populism, which started with Brexit last year before spilling over into the US and now we have this same disease over in France. Although Macron is highly likely to win…
Read more26/04/2017 06:09 With the ECB meeting looming, expectations of Trump's tax announcement and the ongoing French elections, low volatility has the potential to rise once more. 1) Don’t Write Off Le Pen Just Yet The polling data was accurate in the first round of the presidential election in France but that does not rule out a…
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Trimmed mean inflation, the RBA's preferred CPI measure sits just 0.1% beneath their 2% target to further remove any concerns over easing in the coming months, even if employment does turn lower. Inflation data exceeded expectations today, which saw the trimmed mean CPI rise to 1.9%, up from 1.6% previously. This will be a delight…
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The buy signal we highlighted for global risk worked out well and we now see stocks pushing to new highs and outflows of the Yen. We see the potential for this underlying theme to continue which could provide bullish opportunities on JPY crosses and indices through multiple timeframes.
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The Euro-Sterling pair has a great deal of importance amid traders given the political events which are folding. The euro is more than likely to continue its rally against the sterling. The Euro literally crushed the Sterling on the back of the French election outcome. Macron is the leading candidate in the polls and his…
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The euro-dollar pair has the biggest weekly gap gain since the currency circulation and the price is above the 200-day MA. For this move to continue we need to stay above the 200-day MA. Euro/Dollar Dust Settles At 1.0937 The euro gapped higher against the dollar over the weekend and rallied all the way towards…
Read morePosted by Naeem Aslam | 24/04/2017 08:53 *Le Pen and Macron facing each other in round two on the 7th of May. *CAC and Euro pop while Bond yields drop but not for long. *ECB Needs to play it’s A-game. *Fed would pay close attention to elections in France. We have the most…
Read morePosted by Naeem Aslam | 21/04/2017 12:13 *Markets are not anticipating any surprise and an unexpected outcome produce some serious bruises. *If Le Pen wins the first round, the euro/dollar pair could move towards 1.05. As is often the case, the biggest moves usually take place after the market gets a surprise. If you…
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