Submitted Feb 22, 2022|From blog.hycmlab.com|1 comment

AUDJPY is a pair that could be about to register decent gains over the coming weeks for the following reasons: Australian dollar shorts look very stale. Last year Australia’s economy was hit by COVID concerns and a slowing Chinese economy weighed ...

Submitted Feb 21, 2022|From blog.hycmlab.com

There are reasons for potential EURNZD weakness heading into the RBNZ rate meeting this week on February 23. The New Zealand dollar has been the weakest currency of the G8 this year. This is despite the RBNZ having arguably the most hawkish outlook ...

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

Three investment banks have now made the case for higher RBNZ interest rates this year. ASB (Feb 01): Project the RBNZ to hike rates to 2.75% by early 2023. ANZ (Jan 19): Projected RBNZ to raise rates to 3.0% by April 2023. Kiwibank (Jan 30): ...

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

The Bank of Japan made an important move last week when it made clear that it will not be joining the rest of the world’s central banks by hiking rates. The Bank of Japan said it will be purchasing 10 yr JGB’s in an unlimited amount. Why did they do ...

Submitted Feb 15, 2022|From blog.hycmlab.com

One of the instruments that gained on the immediate threat of a Russian incursion into Ukraine was gold. The reason for this was the fact that US bonds saw a bid on risk aversion. So, if there is a sudden move by Russia into Ukraine one of the main ...

Submitted Feb 10, 2022|From blog.hycmlab.com

If there is one key theme for markets that we have right now it is that the world’s major central banks are starting to end their very loose monetary policy. During the COVID pandemic, central banks coordinated a move down to very low-interest ...

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

video At the moment, the fundamentals have been good for Brent Crude near term. OPEC+ has been struggling to increase supply levels, there has been a series of low inventory reports, oil demand is expected to increase as COVID restrictions are ...

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

Natural Gas has some very strong seasonal falls coming up. Let’s use Seasonax screener function, which automatically generates a list of the most promising investment opportunities, to identify this pattern. Choose commodities as your sector to ...

Submitted Feb 2, 2022|From blog.hycmlab.com

Copper has a very strong seasonal trend in February. Copper also has a very strong link to Chinese growth. When China’s economy is growing that can result in strong demand for copper. A key commodity for construction as China grows, copper prices ...

Submitted Jan 27, 2022|From blog.hycmlab.com|3 comments

The outlook for the RBA has now shifted and the RBA now meets the targets it has set for itself. The Bank of Japan has upgraded its inflation outlook, but this has not signalled a change in monetary policy. The last BoJ meeting was uneventful and ...

Submitted Jan 26, 2022|From blog.hycmlab.com|1 comment

At their last meeting, the RBNZ projected that their interest rate would be at 2.6% by 2023. This made the RBNZ the most aggressive central bank of the world’s major economies. However, the ANZ now see a case for the RBNZ to be even more hawkish at ...

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

Usually, the drop in inflation expectations would be enough to see oil to start losing value. The 5 and 10-year break even inflation charts have been showing declines due to expectations that the Fed will hike interest rates this year. Usually, oil ...

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

According to Goldman Sachs, they see a large potential for commodities to outperform again this year. Last year only cryptocurrencies outperformed commodities and Goldman Sachs to significant market imbalances to drive commodity prices again. ...

Submitted Jan 20, 2022|From blog.hycmlab.com|1 comment

This week saw the PBOC cut interest rates by 10bps and US bond yields rise higher again on expectations that the Fed may need to hike by as much as 50bps at March’s meeting. Fed fund futures are now pricing in more than 4 hikes this year and this ...

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

At the Bank of Canada’s last rate meeting, the CAD lost value as market participants focused on the pessimism surrounding future growth. Today we have the Canadian CPI print and if this shows a low reading, below market’s minimum expectations, this ...

Submitted Jan 17, 2022|From blog.hycmlab.com|9 comments

In the event that UK PM Johnson quits the most likely reaction will be a dip in the GBP and UK equities that soon finds buyers. In fact, depending on the replacement, the GBP could find a welcome boost higher. Johnson’s problem It all comes down to ...

Submitted Jan 10, 2022|From blog.hycmlab.com

Heading into the last FOMC meeting we flagged one of the big risks for gold was, that ‘If the Fed signal that they will be hiking rates more quickly that will send yields surging. That will also send the USD higher and this will be negative for ...

Submitted Dec 17, 2021|From blog.hycmlab.com|3 comments

With over 20 central banks having their rate meetings taking place this week it has been a rollercoaster. The Fed kicked off the major central banks with a more hawkish decision that projected three rate hikes for 2022. Then the SNB left rates ...

Submitted Dec 15, 2021|From blog.hycmlab.com

One of the most striking seasonal trends occurs around this time of the year in Platinum. Platinum buyers often make their purchases for the coming year around the start of it. This means that January and February tend to have a very strong start ...