Submitted Sep 5, 2022|From blog.hycmlab.com|1 comment

This week the BoC meets so it is a good time to see what’s been driving the CAD. Take a look at the CAD index and you can see that since the start of the year CAD has been steadily gaining. Those gains have been mainly due to higher oil prices and ...

Submitted Aug 25, 2022|From blog.hycmlab.com

The run-up to the Jackson Hole Symposium has been one in which yields have been rising, stocks selling, and the dollar surging. Why? On expectations that the Federal Reserve is going to need to be more aggressive in its rate stance. After the end of ...

Submitted Aug 24, 2022|From blog.hycmlab.com

video The country of Turkey is struggling with inflation at a 24-year high. Typically central banks would be hiking interest rates to deal with the inflation problem. However, President Erdogan has an unusual policy where he claims that raising ...

Submitted Aug 22, 2022|From blog.hycmlab.com

At the last Jackson Hole Symposium Jerome Powell expected inflation to be transitory. He also told participants that he saw little evidence of wage increases at the time that might threaten excessive inflation. It is reasonable to expect Jerome ...

Submitted Aug 19, 2022|From blog.hycmlab.com

The key market this week was the bond market. A sharp sell-off gripped the gilt markets (UK bond market) post the high UK inflation print. Bunds (German bond market) followed suit as well and bond investors are starting to send signals that central ...

Submitted Aug 18, 2022|From blog.hycmlab.com

One of the nicknames for copper is ‘Dr Copper’ due to the ability of the asset to diagnose the health of the global economy. Copper is a key commodity used in expanding and growing economies, so copper demand tends to bode well for global economic ...

Submitted Aug 16, 2022|From blog.hycmlab.com

The run higher in gold has been fuelled by the fall in real yields and the USD. These falls came after the last Fed meeting which saw the Fed move to a ‘meeting by meeting basis’ as the Fed recognised that the US was showing signs of slowing growth. ...

Submitted Aug 12, 2022|From blog.hycmlab.com|1 comment

The recent shift away from uniform low-interest rates by central banks means that economic data can have more impact on FX than it has previously. At the moment US growth and inflation economic data have been in key focus. On Wednesday we were ...

Submitted Aug 10, 2022|From blog.hycmlab.com|6 comments

Today is the release of the US CPI print. The market has been laser-focused on US growth and inflation and today’s print is likely to provide a decent intraday opportunity on any significant deviations. So, let’s see what is currently expected. Peak ...

Submitted Aug 9, 2022|From blog.hycmlab.com|4 comments

1. Global sentiment worsens The AUD is a commodify based currency and when global sentiment drops, so does the demand for commodities like Iron Ore, copper, and coal. These are key Australian exports. Worsening global sentiment the less demand that ...

Submitted Aug 4, 2022|From blog.hycmlab.com

Gold prices rose 2.57% last week as markets firmed up the $1700 support level for gold. The question everyone wants to know is, ‘should you buy the dip’? Here are the reasons that the current dip in gold is suitable for buying and the key risks that ...

Submitted Aug 3, 2022|From blog.hycmlab.com

There are different ways to trade gold markets and one way is to trade a gold mining index instead of, or as well as, spot gold. The reasons for gold’s upside since the last FOMC meeting have been the falling USD and Real yields which provides a ...

Submitted Aug 1, 2022|From blog.hycmlab.com

The EUR still has some continued reasons for weakness as it increasingly looks like heading into a recession as PMIs on July 22 showed a steep drop below the market’s minimum expectations. In fact, since the PMI data points released on the 23rd of ...

Submitted Jul 29, 2022|From blog.hycmlab.com

The gold/silver ratio is a helpful tool for assessing when it may be better to be in gold or silver positions. Over the last few months, the ratio has been steadily rising as it makes its way up to 100. If the gold/silver ratio does hit 100 then ...

Submitted Jul 26, 2022|From blog.hycmlab.com

Heading into the last RBNZ meeting short-term interest rate markets were pricing in a 100% chance of a 50 bps rate hike and a 67% chance of a 75 bps rate hike. The RBNZ delivered that 50 bps rate hike and affirmed the aggressive path of rate hikes ...

Submitted Jul 20, 2022|From blog.hycmlab.com

Silver and gold typically have a strong seasonal pattern around the summer months of July and August. This is in part due to jewelry stock purchases ahead of Christmas and buyers for the Indian wedding season. One of the key drivers for precious ...

Submitted Jul 19, 2022|From blog.hycmlab.com

Canada is one of the largest oil producers in the world with substantial oil reserves contained within its oil sands. According to the Oil and Gas Journal, Canada has around 173 billion barrels of proven oil reserves and at the start of 2015, these ...

Submitted Jul 7, 2022|From blog.hycmlab.com|1 comment

The Euro has seen further weakness so far this week as growing fears emerge over a slowing global economy, Stagflation, growth, and inflation fears all combined to send the USD higher, and that weakens the EURUSD. Furthermore, the last PMI prints ...

Submitted Jul 7, 2022|From blog.hycmlab.com|1 comment

Why the sharp fall this week? Gold has been touted as an inflation hedge and as a stagflationary play which are two major influences in markets. So, if you just considered those two factors you may be asking yourself, why is gold not roaring higher? ...

Submitted Jul 6, 2022|From blog.hycmlab.com

Copper prices have been falling in recent weeks over global recession worries. As central banks around the world pivot towards hiking interest rates quickly they risk doing so at the expense of slowing growth. With inflation being high many ...