As the pace of vaccinations remains slow in the EU but continues to rise in the US and the UK, traders are pricing in the end of the pandemic this year, and that most of the world’s economies will reopen to full capacity. That is pushing inflation expectations higher and higher, along with other things. Read More
Category: Industry
Is the Gold Bull Market Over?
To answer that question, it’s looking it is. According to the Bank of America (BoA), there are three main reasons for the decreasing value of gold: the weakening of physical demand, a lackluster jewelry market, and a lack of investor interest. The central banks’ demand decreased by nearly 60 percent in 2020, according to theRead More
Markets Expect Inflation, the Fed Doesn’t but Who’s Right?
The US 5-year Breakeven Rate just hit 2.65%. The last time it hit this level was in 2006 when the US was in the middle of a massive housing bubble and oil was on its way to 150 USD per barrel. Another inflation scare comes from US yields, which have been roaring higher recently, andRead More
Greenback Unstable Ahead of the FOMC meeting
The USD continues to increase, although the momentum seems to be waning as market participants are in a wait-and-see regime ahead of the Federal Reserve’s (Fed) next meeting. On Wednesday, the critical Federal Open Market Committee (FOMC) meeting will conclude, and since Jerome Powell failed to deliver a dovish turnaround at his last speech, investorsRead More
Is Oil Heading to 80 USD?
The big oil rally seems to be far from over, and the WTI (West Texas Intermediate) benchmark rose above 67.50 USD on Monday for the first time since October 2018. Offshore oil and gas development is set to recover from the shock that prices and demand went through due to the pandemic. It’s also setRead More
Are Rising Yields Going to Spoil the Bullish Party?
US yields are seeing another day of highs. The US 10-year yield rose to fresh cycle highs on Monday and was trading slightly below the 1.4% handle as traders keep dumping bonds due to inflation expectations. Based on Federal Reserve (Fed) funds futures markets, the chances of a 0.25% Fed rate hike by the endRead More
USD Remains Low Despite Spiking US Yields
Over the previous days and weeks, we’ve seen some severe “spikes” in longer-term US yields, while short-term yields remain depressed near record lows. The yield curve has steepened notably, which has always been a bearish sign for the overall economy and financial markets. The US 30-year yield rose back to a 2-handle, above 2%, the highestRead More
Forex Brokers Unprofitability – February 2021
As the year 2020 has come to end, a lot of Forex brokers have updated their traders’ unprofitability numbers as required by the ESMA regulations. Even though these numbers have to be updated by Forex/ CFD brokers on a quarterly basis, not all regulated European brokers do that regularly. However, the vast majority of brokers already refreshed their risk warning, so we can finally check the updates. We suppose the percentage displayed by brokers includes the number of all losing accounts divided by the number of allRead More
Silver Can’t Hold Gains While Gold is Still Bearish
Monday’s euphoria in the financial market seems to be over as silver is down 5% on Tuesday, while gold was trading 0.5% weaker during the London session. Precious metals usually drop when banks start selling paper, silver, and gold futures – this is what we witnessed today. With demand for physical silver going through theRead More
10-year US Yields are Breaking from the Triangle Pattern
It looks like the recent rally in the US yields might be over, which could imply further weakness for the USD and more gains for US stocks. The 10-year yield seems to be breaking down from the recent triangle pattern. The support of the formation is currently near 1.075%, and if this level is takenRead More

