Talking Points:British Pound slumps as UK PM May revives “hard Brexit” fears Australian Dollar follows local shares higher amid risk-on trade Cautious Fed-speak may cool rate hike bets, weigh on US Dollar
The British Pound is underperforming in otherwise quiet trade at the start of the trading week, roiled by comments from UK Prime Minister Theresa May over the weekend. May rekindled worries about a “hard” Brexit – wherein the UK would lose access to the EU single market – in an interview with Sky TV. She said her priority is to negotiate the best possible UK/EU trade deal while remaining firmly outside the regional bloc rather than find ways [...]
Talking Points:Crude oil prices mark time, bracing for OPEC commentary Gold prices snap 3-day win streak on US wage growth data Cautious Fed-speak may cool bets on steep rate hike cycle
Crude oil prices are marking time in familiar territory as the spotlight turns back to OPEC and the implementation of its output reduction scheme. Cartel members will gather in Abu Dhabi for a variety of conferences throughout the week. Meanwhile, the group’s Secretary General Mohammad Barkindo is embarking on a three-day trip to Kuwait, which chairs the OPEC’s committee monitoring production cuts. This makes for significant headline risk and investors may be [...]
Talking Points:AUD/USD Technical Strategy: Short at 0.7327 Aussie Dollar forms bearish candle pattern, hinting down trend resuming Short trade triggered, targeting initial support layer comes in below 0.73
The Australian Dollar put in a bearish Dark Cloud Cover candlestick pattern after testing falling trend line resistance, hinting it may be readying to resume its down trend. Last week’s brisk recovery was cut short in the wake of December’s US employment data.
From here, a daily close below the 14.6% Fibonacci expansion at 0.7266 opens the door for a test of the 23.6% level at 0.7211. Resistance is in the 0.7357-96 area (January 5 [...]
Talking Points:Crude oil prices rise, correcting after yesterday’s selloff Gold prices gain as FOMC minutes dent rate hike outlook ISM and ADP may see gold rise further as EIA boosts oil
Crude oil prices turned higher in a move that seemed corrective after yesterday’s sharp selloff. API data showing inventories fell 7.43 million barrels last week probably didn’t hurt either, but much of the day’s advance had already occurred by the time the release crossed the wires.
Gold prices pushed upward as expected following the release of minutes from December’s FOMC meeting. Policymakers seemed far less convinced of the need for [...]