As risk currencies become quickly overcrowded and range-bound equity indices remain the territory of traders rather than investors, silver once again appears as the notable gainer, characterised by richly similar fundamentals to gold. The only thing is that silver is trading 20% below its record high.
Roger Baettig
Jul 28, 2011
It was no surprise that Bernanke did not dare utter the words QE3 on Wednesday's press conference. Yet, there was no need to refer to further easing when the FOMC already downgraded its growth outlook for the 3rd successive meeting.
Roger Baettig
Jun 25, 2011
After a solid domestic session the Aussie dollar slipped lower overnight with retreating US equities and losses on the Euro encouraging US dollar strength against its major rivals.
Chris Gore
Jun 07, 2011
It's a solid start to the week for the Aussie dollar with price action moving up through 107.50 US cents earlier this morning in an extension to gains recorded in Fridays session. To recap the events of Friday, US nonfarm payrolls recorded meager 54,000 new jobs in May from a previous 251,000 to fall short of the 165,000 estimated.
Chris Gore
Jun 06, 2011
After briefly falling below 106 US cents overnight the local unit was able to regain composure over the course of US trade with price action moving back up to highs of 106.9 US cents.
Chris Gore
Jun 03, 2011
After a solid performance domestically, the Aussie dollar has taken a hit overnight coinciding with a steep drop in US equity markets, broad based losses across the commodity space and another Greek downgrade for good measure.
Chris Gore
Jun 02, 2011
These charts could seem like the perfect set up for USD upside. It was about a month ago (week ending Mar 18) that USD net shorts bottomed at a 3 year low. Six weeks later, USDX hit a 3-year low thanks partly to a 500-pip decline in EURUSD. We've already argued the case against any considerable USD rebound on here.
Roger Baettig
May 09, 2011
This headline-charged first week of May has been dominated by the announced death of Osama Bin Laden, a historic 5-cent retreat in the euro and the greatest weekly decline in silver. But the week could have witnessed a positive transition (another one) in favour of precious metals. Here is why;
Roger Baettig
May 07, 2011
China's latest action to raise banks' reserve requirement ratios is no longer weighing on market sentiment as participants expect the more aggressive option of higher interest rates (borrowing and lending). The overnight decision to hike RRR for the 6th time this year is seen as part of a broader tightening. With 1-year lending rates standing at 5.56% and deposit rates of 2.50% below 4.40% CPI, the case for higher rates into 2011 remains intact. This helps explain why Shanghai Composite In...
Roger Baettig
Dec 11, 2010
US dollar stabilizes up as US bond yields push higher following the 93K increase in Nov ADP (highest since Nov 2007) and the October revision to +82K from +43K. US 10 year yields jump to 2.91% from 2.79% earlier, further boosting the "good-data-is positive-for-USD" reaction, which was not always apparent. Although the euro is holding firm, general FX dynamics are increasingly similar to exactly a year ago when USD strengthened in early December 2009 on a combination of strong US Nov jobs r...
Roger Baettig
Dec 02, 2010
Aside from Korea skirmiches and the FBI raids of several US hedge funds, rising Eurozone credit spreads extend beyond Ireland as Portuguese, Spanish, Greek and Italian 10- year spreads relative to Germany hit their highest sinc Nov 11-12). Good US data (US Q3 GDP revision to 2.5% from 2.0%) is good for the US dollar as was proven after last week's Philly Fed survey, as data weakens the case for buying the entire $600 bln in QE2. Korean border fire, FBI raids of US hedge funds & prolonged Iris...
Roger Baettig
Nov 24, 2010
