The last two weeks were highly positive for US equities and other global indices as the SP500 index rallied 10% and erased nearly all of this year’s losses. However, judging from the soaring yields and hawkish Federal Reserve (Fed) expectations, the rally might be over soon. Morgan Stanley Remains Bearish Morgan Stanley has recently warned that recentRead More
Category: Industry
USDJPY at 6-year Highs AS BOJ Governor Comments on Consumer Inflation
The USD continues to rally against the yen, jumping above the psychological level of 120 for the first time since February 2016. The BOJ is Dovish In other news, Bank of Japan (BOJ) Governor Haruhiko Kuroda commented on consumer inflation in his appearance on Tuesday. He thinks that inflation will likely rise, weighing on theRead More
Short-term US Yields Rise To New Cycle Highs
The new year started in a bearish regime for US bonds, pushing the two-year yield above 0.8% for the first time since March 2020. Additionally, the 10-year US yield rose sharply and jumped above 1.6%, while the 30-year yield sky rocketed above the 2% threshold. Falling bond prices and soaring yields sent the USD stronglyRead More
Wrapping up 2021 With a Look Back and Forward
Looking Back at 2021 As the sun rose in 2021, the world was still reeling from the effects of COVID-19. Markets were affected, people were under lockdown, many businesses were shutting down. However, there was also hope on the horizon, that a new US president, and an impending vaccine roll-out, would lift the world out ofRead More
Yields Plunge Despite Soaring Inflation
Traders remain nervous ahead of this week’s Federal Open Markets Committee (FOMC) meeting, leading to a decline in US yields, while stocks and oil have also dropped. The Federal Reserve (Fed) is widely expected to announce plans to quicken the tapering process as inflation continues to soar. Last week’s data showed that the US inflationRead More
Forex vs Stocks: Understanding The Differences
Every trader’s goal is to make as much money as possible in the financial markets. When they’re choosing which markets to trade in, traders will naturally ask themselves which markets present them with the best opportunity for profit. Two of the most popular markets are stocks and currencies. The main difference between trading Forex andRead More
Equities Continue to Trade at All-time Highs
US equity indices advanced every day last week, rising for a fifth week for their longest rally in 14 months. Sentiment remained bullish on Monday, boosted by the latest news that Regeneron Pharmaceuticals announced a Phase 3 trial of its injectable monoclonal antibody cocktail, REGEN-COV, which effectively prevented people from becoming sick from COVID-19. The company saidRead More
Oil Rises Above 85 USD/ Barrel as Bull Market Remains Intact
All eyes are still set on oil as the commodity continues to perform well, climbing above the 85 USD level on Monday, confirming the long-term bullish trend. It is hard to believe that in April 2020, oil dropped below 0 USD as nobody wanted the commodity. Fast forward to today, the WTI benchmark is trading at levelsRead More
The Greenback Loses Steam Despite Soaring Short-Term Yields
The US dollar seems to be struggling recently, and the dollar index is down for four consecutive days on Monday. It looks like the recent bullish trend might be running out of steam. We can say the same thing about long US yields, as the 10-year Benchmark yield posted a bearish reversal candle on Monday. AtRead More
WTI Posts Fresh Seven-Year Highs Above 80 USD
For the first time since November, 2014 oil continued to move higher this week managing to get above the level of 80 USD. The energy crisis that’s getting worse in the EU has now spread to the US and China. While the whole energy sector has been rising, investors seem to ignore the strengthening US dollar orRead More