How to approach the currency market

Peter Rosenstreich -

  USD lagging yieldsUS equity markets wasted no time after the long weekend rallied to new record highs. The general optimism relies on the strong economic outlook. Fed speakers sounding increasingly hawkish, suggesting a steeper rate path but also US economic acceleration, which will support corporate earnings. Fed president Hackers… Read More »

ECB ‘rule bending’ to pressure the Euro

Martin Arnold -

Markets have repriced the Euro lower, as the chance for a populist Presidential win from Le Pen’s Front Nationale (FN) has increased in recent weeks. Politics repricing the EuroAnalysts have repriced consensus forecasts lower for the EUR/USD during 2017, as political uncertainty threatens to break-up the Eurozone. At the end… Read More »

Gold outlook 2017: further upside likely


While the US Federal Reserve (Fed) will increase rates this year, inflation will remain stubbornly high, maintaining a low real rate environment. Gold prices could rise 8% in the first half of the year, aided by a weaker US Dollar (USD). However, USD strengthening in the second half of the… Read More »

Gold and the Fed


After dropping for seven consecutive weeks following Donald Trump’s election, gold started staging a relief rally at the end of December as the dollar consolidated, bond yields took a breather and the equity markets ebbed and flowed. Add to that some bargain-hunting as well as support from traditional buying in… Read More »

Near-term downside for US Dollar

Martin Arnold -

The US Dollar has jumped sharply in recent months, reaching the highest level since late 2002. The US Dollar has moved ‘too far too fast’ and could unravel in coming months if the US Federal Reserve’s actions don’t live up to its rhetoric. Strong economic environment…Strong economic data, particularly the… Read More »

5 things you need to know about investing in oil

WisdomTree -

Oil is an important commodity that investors track with great interest, but how best to judge the key trends – and what are the main nuances of the market? The Organisation of the Petroleum Exporting Countries, otherwise known as OPEC, recently agreed a deal where the cartel would cut production… Read More »

European Mining: Still set fair into year-end


One month on from upgrading our European Mining industry view to Positive, we round up developments on the macro, commodity and equity-specific fronts. Macro data has generally been supportive. Earnings momentum continues to underpin equity outperformance, with upgrade pressure concentrated in the bulk commodities and diversified equities, where valuations remain… Read More »

Short sugar and coffee


Speculative positioning in both sugar and coffee appear over-extended. Sugar rally to run out of steamSugar has gained over 80% since February 2016 as the market is expected to have entered a second consecutive year of a production deficit. Prices are now trading at a 5-year high.The futures market has… Read More »

Commodity rebound not enough for Aussie dollar


Aussie dollar has tracked global commodity prices higher in 2016, but soft domestic conditions will pressure the local currency. Corporate earnings have remained lacklustre, just 5% above the multi-year lows Commodity price reboundThe Australian Dollar (AUD) is one of the major global commodity currencies, as its economy is closely tied… Read More »