A tale of two crises. Can any contrasts or comparisons be drawn and lessons be learned from two sterling crashes?
Recent gains in the EUR/USD exchange rate have been driven by the price gap between US and European natural gas, not the ECB's outsized rate hike in September.
Global commodities had mixed performances this week. Metals have been aided by a dollar weakening, while energy suffered recent political developments.
The dollar index (DXY) is about to end the week in the red (-1%), after reaching its highest peaks in the last twenty years, as profit taking behaviour emerged
With the dollar at its highest level in 20 years and major central banks competing to raise interest rates, the forex market is bracing for a volatile month.
Seasonal patterns affect the stock market performance. September is a risk-off month, whereas April, November, and December are risk-on months. Surprisingly, stocks perform significantly better in odd years than in even years.
Gold and the US dollar have historically had strong starts to the year. The precious metal's average return in January was 1.6%, while the US dollar rose by 1%.
The major trend in EUR/CAD remains bearish, with no signs of a reversal in global oil prices or Euro Area-Canada rate differentials.
Fed members indicate they will tighten interest rates into restrictive territory to curb inflationary pressures, reviving the dollar's bull trend.
The widening divergences between Europe’s Dutch TTF and Henry Hub natural gas prices are adding a further downside risk for the EUR/USD pair.
Market pricing of future Fed interest rate cuts is a positive catalyst for precious metals such as gold and silver. However, the final answer is determined by the inflation trend.
According to Peter Schiff, precious metals would be the best inflation hedge for investors. This thesis was supported by historical analysis.
EUR/USD recovered 1.025 levels, boosted by rising expectations of an ECB half-point raise at tomorrow’s meeting
Capital.com's study shows that the current commodities supercycle has already provided returns comparable to the mature periods of the preceding supercycle.