A snapshot of calendar events ad breakdown of economic data for next week's trading. USD: The FOMC minutes outlined that consumer prices, spending and growth are expected to be ‘transitory’, which means any shortfall of these data sets in Q2 are likely to hamper expectations of hike number 4 of this cycle. Core PCE and…

Posted by Matt Simpson | 26/05/2017 03:11 Several Yen crosses sit at technical junctures as we head to the end of the week. USDJPY, AUDJPY and GBPJPY are our preferred setups. [embedded content] Matt Simpson | Senior Market Analyst A certified technical analyst, combining macro themes, monetary policy and business cycles to generate Forex and commodity trade…

Posted by Matt Simpson | 25/05/2017 22:36 Volatility erupted across the energy sector as OPEC seemingly over promised yet underdelivered, sending WTI down by over 5% and dragging oil markets down with it. OPEC confirmed they would extend their oil production cuts by a further 9 months, which was at the lower bound of the…

Posted by Naeem Aslam | 25/05/2017 12:34 The FOMC minutes delivered what investors were looking for. The Fed surely wants to avoid another taper tantrum and they kept the markets calm The Fed is letting sleeping dogs lie with the latest FOMC minutes confirming their current wait-and-see approach when it comes to reducing market liquidity.…

Posted by Matt Simpson | 25/05/2017 04:29 We highlight three correlations which show the near-term may provide further hikes, further out it may be less pleasant.  - 2yrs suggest Fed will continue to hike - 2-10yr spread is out of sync with current hike path - If Fed Funds and 2-10yr spread are to meet,…

Posted by Matt Simpson | 25/05/2017 03:00 Gold could be setting up for another leg higher whilst US Dollar Index decides if it will carve out a base or extend losses. WTI remains supported ahead of the OPEC meeting yet with expectations potentially priced in, then we’re on guard for a wake-up call. [embedded content]

Posted by Matt Simpson | 25/05/2017 00:42 The Bank of Canada retained their neutral position overnight, which provided a further boost for CAD crosses alongside stronger oil prices and the slightly dovish FOC minutes. Summary of BoC May 2017 Statement BoC maintained its target for the overnight rate at 1/2 per cent Three measures of…

Posted by Matt Simpson | 24/05/2017 22:36 Despite starting the session on a firmer foot, the US Dollar traded lower following the FOMC minutes and expectations for further hikes followed suit. The US Dollar faced further pressure overnight, particularly against commodity currencies as the Fed pinned a data rebound to the likelihood of the hike…

Posted by Naeem Aslam | 24/05/2017 13:17 No rabbits are expected out of OPEC’s hat on Thursday, when OPEC is expected to announce the reduction of the supply gut.  The joint efforts of the OPEC cartel with non-OPEC producers dating back to October 2016 initially resulted to a curb of nearly 1.8 million in the first month.  Saudi…

Posted by Naeem Aslam | 22/05/2017 08:49 In one of his most important speeches in Saudi Arabia, Donald Trump did not go off the rail. Bromance Blooms Between Trump and King Salman  He certainly avoided his usual free style which he adopted during the campaign mode. Although, you can argue that there are many contradictions if one compares his rhetoric during the campaign and what he…