Gold

  • 16 May @ 10:56

    Michael Derks, Chief Strategist, surveys the increasingly desloate
    Spanish,, Italian and Greek landscape, the flight to the dollar and the
    surprisingly low gold price.

  • 15 May @ 07:12

    Yet another bad hair day for risk assets yesterday amidst continuing concerns over a myriad of issues, including the unstable political situation in Greece and ongoing question marks around whether it will remain in the eurozone, the dire state of Spanish banking and sovereign finances, and a sense that the losses registered by the CIO…

  • 14 May @ 10:11

    Michael Derks, Chief Strategist, looks at the sea of red in the markets
    with equities well down, the gold price on the slide and Spanish
    worries continuing to hurt the euro.

  • 14 May @ 07:13

    Unfortunately, in financial markets at least, it is rarely the merry month of May. Last week was another sea of red, with equity markets on the slide, high-beta currencies heading south and core G4 bond yields declining. Spanish equities were singled out for the harshest treatment, falling another 3%, with the financials again hard hit….

  • 11 May @ 10:36

    Simon Smith, Chief Economist rounds off the week as the Spanish banking
    crisis and budget deficit announcement this afternoon pressure the euro.

  • 10 May @ 07:42

    The euro’s break below the 1.30 level has been sustained overnight and it’s notable that the dollar has risen in all but two of the past nine sessions, looking at the dollar index chart. The political events in Europe, both in France and Greece, have served to enhance the more risk-averse trend that was already…

  • 09 May @ 10:16

    In the continued eurozone uncertainty, Chief Economist, Simon Smith,
    takes a look at the widening peripheral bond spreads, the euro that
    simply will not succumb and the sharp fall in the gold price. Coverage
    of all these topics can be found in more detail at www.fxpro.com/news

  • 01 May @ 07:37

    Last night’s decision by the RBA to lower the cash rate by 50bp to 3.75% ought to be applauded. Faced with an economy which, outside the mining sector, is in recession and with inflation likely to be lower than expected, policy-makers rightly decided that financial conditions needed to be loosened considerably. Australia’s central bank would…

  • 27 Mar @ 09:17

    The Accumulative Swing Index (ASI) is primarily employed as a divergence and confirmation tool as well as for buy and sell signals. It was developed by Welles Wilder in his technical analysis book New Concepts in Technical Trading Systems and designed to be used for futures trading. However, it can also be used for stock…

  • 26 Mar @ 07:24

    It now looks more than likely that Germany will recommend an increase in the firepower of the eurozone’s rescue facilities at Friday’s meeting of finance ministers. Initially, Germany steadfastly refused to sanction such a move, among other things fearing that it would make peripheral countries less likely to implement austerity measures with such a safety…

  • 15 Mar @ 08:19

    The yen is off some 1.8% vs. the dollar so far this week, with USD/JPY touching an 11mth high in recent days. There have been been a lot of changes in FX dynamics so far this month (see below), of which the yen has been just one. The better tone to US data has certainly…

  • 14 Mar @ 19:03

    Gold bulls are starting to shiver and shake, with the price down another 2% today to USD 1,643 an ounce. At the end of last month, it was close to USD 1,800; six months ago, it was touching USD 1,900. So, what is going wrong? Is this the end of the bull cycle, or simply…

  • 02 Mar @ 08:19

    The deadline and hurdles for Greece are passing at a pace. Yesterday it was the decision that CDS would not be activated on Greek bonds, although this does not mean that they won’t be in the future (for lengthy technical reasons). The other factor to note is that, even thought the EU has delayed the…

  • 01 Mar @ 19:10

    Yesterday’s fall in the gold price was the largest for two years. As with the moves in other markets, it’s not easy to split out the different between the many competing factors that were at play on the last trading day of the month. Partly given the spurious nature of the decline yesterday, we are…

  • 13 Feb @ 08:21

    On the face of it, the vote to pass the latest austerity measures in Greece passed comfortably, 199 votes in favour with 74 against. But the political and social price has been high. Several cabinet ministers have resigned and violent protests have spread across the country. But as always, it’s a question of implementation of…

  • 05 Jan @ 21:22

    Gold has bounced back well in the early trading days of 2012. Some have suggested that this sits at odds with the more risk-averse environment of the past couple of days, but from other angles, it does not sit that uncomfortably with other developments. For starters, a fair deal of the weakness in gold seen…

  • 13 Dec @ 06:20

    No one ought to be surprised at yesterday’s commanding performance by the world’s major reserve currency. With most of Europe falling into recession and some of Asia’s major economies losing momentum rapidly, it is little wonder that investors and traders are turning back towards the dollar at a time when the American economy is actually…

  • 16 Nov @ 08:15

    The air of calm that pervaded the start of the week lasted barely for a few hours. By yesterday, it had morphed into a full scale rout in European bonds that saw spreads to Germany widen out once again. Banks are taking any opportunity to sell and the decline in liquidity as year-end approaches will…

  • 14 Nov @ 08:35

    It is remarkable how a dose of financial torture can concentrate the mind. There was more relief in Rome on Friday and again over the weekend, with Mario Monti being sworn in to head a new technical government. His challenge will not be one of an appreciation of the issues and the policies that Italy…

  • 24 Oct @ 07:08

    The UK is a fiscal test case that many are watching closely. The economy has ground to a halt over the past nine months but the government is sticking to its plans to rein in the deficit. The borrowing numbers released on Friday show that the deficit is currently on track to meet the targets…