4/21/2021 5:53:55 AM GMT
Markets have been busy in my short absence, with recovery optimism and bullish speculative momentum making recent days look like a rerun of the 2020 buy-everything rally. Perhaps the key reason for the asset price resurgence is the yield on the US 10-year note, the risk-free rate of return for finance gnomes the world over. Along with its 30-year big-brother, the US 10-year yield has steadily retreated since the start of April, and the inflation heat map has steadily cooled.
Call it complacency, the market fully pricing in risks in their own minds, or the wall of money looking for a return - preferably immediately, as he clicks buy on Dogecoin in his gamified investment portal- in a zero percent world, the fall in US yields is there for all to see. Equities have rallied in general, DM and EM currencies have recovered, even the Turkish Lire as the US Dollar retreats, and gold s rally has hung a tantalizing long-term low formation on the charts.
Joined at the 10-year hip
Posted 4 hours agoSharePrint
Markets have been busy in my short absence, with recovery optimism and bullish speculative momentum making recent days look like a rerun of the 2020 buy-everything rally. Perhaps the key reason for the asset price resurgence is the yield on the US 10-year note, the risk-free rate of return for finance gnomes the world over. Along with its 30-year big-brother, the US 10-year yield has steadily retreated since the start of April, and the inflation heat map has steadily cooled.
Call it complacency, the market “fully pricing” in risks in their own minds, or the wall of money looking for a return – preferably immediately, as he clicks buy on dogecoin in his gamified investment portal- in a zero per cent world, the fall in US yields is there for all to see. Equities have rallied in general, DM and EM currencies have recovered, even the Turkish lire as the US dollar retreats, and gold’s rally has hung a tantalising long-term
AUD/USD breakout out of flag formation; On its way to 0.8400?
Joe Perry February 19, 2021 2:37 PM
AUD/USD traders will be eyeing the 0.8000 level first Share:
Last week, we discussed the possibility of AUD/USD making a run out of a flag pattern and towards a target of 0.8400. The move has begun, and Aussie traders will be eyeing the 0.8000 level first. So far, traders seem to be ignoring the weak data from Australia. Both Manufacturing and Services Preliminary numbers were weaker than January’s data. Preliminary Retail Sales data posted a big miss from expectations at 0.6% vs 2% expected, however is was still a huge jump from December. December’s reading was -4.1%. But with commodities such as copper, platinum, iron ore, and lumber screaming as of late, commodity currencies should be higher! A recovery is seemingly bein
Aussie higher ahead of confidence data
February 8, 2021SharePrint
The Australian dollar has started the trading week in positive territory. Currently, AUD/USD is trading at 0.7706, up 0.37% on the day.
Business and consumer confidence next
Australian releases key business and confidence numbers on Tuesday. NAB Business Confidence (00:30 GMT) slowed to 4 in December, down sharply from 12 beforehand. Westpac Consumer Sentiment (23:30 GMT) also weakened in December, with a reading of -4.5%. This marked the first decline in five months. We now await the January numbers.
Last week wrapped up with a disappointing US nonfarm payrolls report. NFP posted an anemic gain of 49 thousand, missing the estimate of 85 thousand. True, this could be considered a rebound from the previous reading of -140 thousand, but investors were unimpressed and sent the US dollar broadly lower to end the week. The Australian dollar soared on Friday, gaining 1.02 per cent, its best one-day performance in a yea