Quick Take
It was turnaround Tuesday as risk-off came back rather aggressive leading to a steady bid in the US Dollar, Japanese Yen and a surprisingly strong Canadian Dollar, decoupled from the underperformance of other commodity-related assets (AUD or Gold). The Pound also suffered from the lack of clarity on Brexit.
Quick Take
The story of the day in the currency market was the renewed strength in the British Pound after the UK signaled that the October 15 deadline to get a trade deal done with the EU will drag on and talks are set to continue. On the flip side, the AUD is under pressure…
Quick Take
We had a classic fly to safe haven assets with no particular catalyst once again. The usual suspects (USD, JPY, CHF, Gold) were the main risers while commodity-linked currencies (AUD in particular) and the GBP fell sharply amid the sell-side flows in equity indices since Europe.
Quick Take
The European block (EUR, CHF) were the main beneficiaries as a new week gets underway while the USD was initially under strong pressure for most of the day only to rebound quite decisively late on the day. The Oceanic currencies could not find any love with both the AUD and NZD imploding midway through the European session as the losses in equities weighted towards the allure of ‘risk-on’ fiats.
Quick Take
In many ways, Tuesday’s script resembled Monday’s price action as the EUR and the CHF continues to be the main winners, even if this time the CAD also joined the bullish party as Oil rose to the best levels in weeks. The AUD and NZD remained weak again as chatter builds up that the RBA will step up its easing measures near term.
Quick Take
Looking at the leaderboard, there were two major contrasts in performance in the last 24h. On one hand, the British Pound skyrocketed amid renewed optimism that a Brexit trade deal is within reach. On the other hand, the North American currencies (USD, CAD) succumbed once again with no fiscal package agreement looming and an uncertain election outcome around the corner.
Quick Take
A wave of renewed risk appetite returned through the US session as US stimulus hopes were re-inflated after US House Representative Pelosi stated “we’re just about there”. The news lifted the likes of US equities as well as commodity-linked currencies.
Quick Take
The EUR ended last Friday as the strongest currency alongside CHF, which usually replicates the behavior of the former. These two currencies, alongside a revived Kiwi, also topped the leader board last week. On the other side of the spectrum we find the USD and the CAD, further reinforcing the notion that a marked transition in flows has been seen away from the North American complex into Europe.
Quick Take
Financial markets are exhibiting risk-off dynamics resulting in the US Dollar and the Japanese Yen catching a strong bid while global equities and bond yields fall. Surprisingly, the sell-off in risk assets was largely contained in the likes of the Aussie or the Kiwi, holding up extraordinarily well amid the severe deterioration in the risk mood. Meanwhile, the European currencies (EUR, CHF), which did put on a solid performance as of late, didn’t fare that well on Monday.
Quick Take
With the US election just one week away, with no prospects of a fiscal stimulus package ahead of it, and with chatter of further lockdown restrictions in Europe amid the spike in COVID-19 cases, the Yen continues to be the dominant performer as stocks keep falling. The Kiwi and Gold have been two assets outperforming too.
Quick Take
The proverbial finally hit the fan in risk dynamics with very sharp falls in equities all over the world as the combination of an uncertain election outcome in the US, coupled with no fiscal stimulus package and spooky prospects of national lockdowns in Europe again was a burden to heavy to bear for Mr. Market. It was a one-way street with the US Dollar and the Japanese Yen the main beneficiaries.
The US Dollar and the Japanese Yen, following the dominant thematic of this week, emerged as the top performers once again on Thursday. Only the Canadian Dollar, late in the day, was able to keep up. The Euro gave back the previous day’s gains as the ECB sounded more dovish while the Pound was out of favor too this time. The Kiwi and the Aussie, after the overstretched moves from Wednesday, and with equities in ‘yo-yo’ mode, managed to put up a fight.
Quick Take
One of the busiest weeks of the year is upon us with the celebration of the US general election, alongside the RBA, the FOMC and the BoE. If that wasn’t enough, the market has the added complexity of how to factor all in within a context of a worsening COVID-19 trend globally.
Quick Take
The US election day is finally upon us. In this article, I will touch on the most essential snippets of information that as a trader you must take into account as it relates to financial and market risks. It is no secret that the outcome of the US election and most importantly and the different combinations of outcomes will create huge spikes in volatility, so as traders, we must be prepared for it.
Quick Take
The main take-away from the US election day is that the Democratic nominee Biden is edging closer to the victory even if the jury is still out there as votes continue to be counted. What really matters though is what going on beneath the surface as Trump’s team has initiated varies lawsuits to contest some of the results in key swing states.
Quick Take
The US Dollar had the worst performance in over 6 months on the aftermath of the US election as ‘risk on’ grips the market. The Australian Dollar, the price of metals and the equity market expressed a completely different picture as the ongoing appreciation doesn’t abate.
Quick Take
As the US Presidential Election got called in favor of the Democratic representative Joe Biden by most media outlets, the main story continues to be the plummeting of the US Dollar across the board.
The overarching theme driving markets, without a doubt, the breaking news that Pfizer, in partnership with BioNTech’s experimental covid-19 vaccine, were able to successfully complete stage three of the COVID-19 vaccine trials with an ‘extraordinary’ 90% success rate. The immediate reaction was to buy risk assets aggressively.
Quick Take
The British Pound made a statement of fortitude through Tuesday, ascending to the top of the leader board. The price of Gold was the only asset I monitor in my daily analysis able to keep up. The rest of currencies meandered without a discernable bias as the market appeared to consolidate the strong gains after the vigorous risk appetite wave following the positive vaccine news by Pfizer.
Quick Take
If you were focused on trading the London session where most of the Forex volume occurs, trading the Japanese Yen with a bullish bias became hands down the trade to exploit. The strong net gains in the Japanese currency were the most impressive judging by the gains printed in the US equity space, which is rather anomalistic.