Markets were ghosted by a wave of risk aversion on Monday, only safe-havens benefitted but risk-sensitive currencies were hurt, though the latter group had pared back on much of their earlier underperformance by the end of US trading session as risk appetite recovered.The US dollar was the safe haven of …
Read More »Oil falls 2% as Fed rate hike talk ghosts risk markets
At the time of writing, WTI picks up bids towards $84.00, extending the late Monday’s recovery during the initial Asian session on Tuesday. The oil benchmark’s latest recovery takes clues from a bullish Doji candlestick and Momentum line. Oil prices fell about 2% on Monday, hit by investor concerns over …
Read More »AUD/USD Rebounds Ahead of Australia inflation Data
The AUD/USD has held onto the corrective pullback from more than a month’s low around 0.7140, after two successive trading days of risk aversion.The recovery moves could be linked to the consolidation of losses by the risk-sensitive assets while the Aussie pair particularly awaits key inflation data during early Tuesday …
Read More »Risk-Sensitive Currencies Survive Market Mood
Markets were hit by a wave of risk aversion on Monday, benefitting the safe-havens and hurting the risk-sensitive currencies, though the latter group had pared back on much of their earlier underperformance by the end of US trade as risk appetite recovered.Market commentators said that geopolitical concerns about the rising …
Read More »GBP/JPY Steadies Amid Downbeat Market Sentiment
In the New York session, the British pound slides against the safe-haven status of the Japanese yen. The GBP/JPY is trading at 153.64, down 0.27% and the GBP/JPY began in the right foot in the overnight session, though subdued around the daily highs at 154.50. Nevertheless, as the market mood …
Read More »Why Might Fed’s Meeting Shock Financial Markets?
Since 13-14 December meeting, financial markets have been nicely cooperating with the Federal Reserve’s efforts to restrain inflation. They are doing the Fed’s work for it by creating tighter financial conditions and exhibit no panic.But as the US central bank’s policymakers meet on Tuesday, an underlying question they face is …
Read More »Can Fed’s Policy Meeting Really Deter Inflation?
Jerome Powell’s predecessors Ben Bernanke, Alan Greenspan, and Paul Volcker were first appointed by a president from one party, then reappointed by a president from the other, similarly Powell himself was first nominated to the Fed’s board of governors by President Barak Obama, he was elevated to Federal Open Market …
Read More »USD/CAD Rallies Amid Broad Risk Asset Retreat
Having started the day closer to 1.2550, and being on course to post on-the-day gains of about 1.0%, the USD/CAD pair is currently penetrating the 1.2700 level having rallied from the mid-1.2500s on Monday amid widespread losses for risk assets m meanwhile, safe-haven demand amid geopolitical tensions and amid pre-Fed …
Read More »The US Dollar Benefits From Russian-Ukrainian Tensions
The US dollar has continued to rise since the beginning of Monday’s trading session, benefiting from the deterioration in risk appetite in global financial markets due to the Russian-Ukrainian tensions.The dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 96.02 points, …
Read More »EUR/USD Rebounds From Two-Week Lows
The EUR/USD pair has dropped to 1.1289, reaching lowest level since 10 January and then rebounded. It is back above 1.1320, still in negative territory but off lows and back above the critical 1.1300 area.If the pair manages to remain above 1.1300 it could remain in the current range with …
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