Currency Analysis & Opinion

Market OverviewThe US Treasury yield curve inverting at the key 3 month/10 year spread is a concern for risk appetite. Whilst the distortions of unwinding its massive balance sheet (around...

Stating that the next OCR direction is likely to be down, RBNZ crunched their way out of neutral gear whilst NZD bulls burned rubber and headed for the exit.Summary of the March statement: The...

Over 1,000 days after the UK narrowly voted to leave the European Union, it’s still not remotely clear how the new relationship will look, who is in charge…and even whether the UK will...

Sterling longs spy another short-lived opportunityMonday’s late-night parliamentary drama buoyed the pound to as high as $1.3261, its best since last Wednesday with a more than one-week top...

An interview with Jacob Rees-Mogg appeared to be responsible for the pound perking up on Wednesday morning. The ERG chair said that it is ‘very, very difficult’ to see the UK leaving the...

After the UK Parliament took control of Brexit on Monday, the pound sterling stabilised at around USD 1.32, showing that all options remain on the table.Investors are buying short-term protection...

Tuesday March 26: Five things the markets are talking aboutGlobal equities have rallied overnight after two session of losses as the U.S 10-year Treasury yields backed away from this year’s low...

Market OverviewWith bond markets settling down, a degree of calm has begun to form. The flight into safety that arose from fear of the implications of a key part of the US Treasury yield curve...

As is usually the case, overnight implied volatility has spiked ahead of the central bank meeting, irrespective of the fact that most expect rates to remain unchanged at 1.75%. Still, it remains...

Whilst the bias for USD/CHF remains for a break to new lows on the daily chart, we see potential for a minor rebound for intraday traders as its correction completes.We noted recently that DXY could...

Daily FX Market Roundup March 25, 2019Kathy Lien, Managing Director of FX Strategy for BK Asset ManagementAfter the big moves in FX last week it was a relatively quiet day for currencies. The US...

Last week, the Fed downgraded its economic forecast and the 10-year Treasury yield crossed below the 3-month Treasury yield, which some view as the harbinger of recession. As well, Friday's equities...

Weekly COT Report - March 25, 2019A summary of the weekly Commitment of Traders Report (COT) from CFTC to show market positioning among large speculators. GBP traders reduced net-short exposure by...

Market OverviewMarket sentiment has been wavering for weeks, but there has been a significant reaction in risk appetite in the days since the Fed meeting last Wednesday. Conventional wisdom would see...