Author: FX

There are two strategies that are at the opposite sides of the spectrum – trend following strategies and mean reversal strategies. The two strategies seem like exact opposites. Trend following pertains to looking for markets that are trending in a certain direction and trading in the direction of the trend. Mean reversal strategies on the other hand is about looking for markets that are either overbought or oversold and trading against the current direction with the belief that price would soon revert back to its mean. Trend following strategies tend to produce high probability trade setups because traders are often…

The USD Index stuck at 103.50 bottom. Stocks pick up overnight, after they were pummeled Tuesday by the BoJ’s surprise hawkish tweak in its yield curve control. Yields: JGB 2-year rose above zero for the first time since 2015. 10-year Treasury yield cheapened 11 bps to hit 3.706%. The curve inversion unwound another 10 bps on the day to -57.9 bps and compares to the -84 bps two weeks ago. EUR -jumps 20 pips at the EU open higher to 1.0630. German GfK consumer confidence improved to -37.8, a tad better than anticipated. All in,…

Eurostoxx +0.3%Germany DAX +0.3%France CAC 40 +0.3%UK FTSE +0.2%Spain IBEX +0.3%This mirrors the mood in US futures, which sees S&P 500 futures up 0.3% alongside Nasdaq futures and Dow futures – which are also up 0.3% on the day so far. I’d still warn about the technical outlook for the S&P 500 though, and that is one to watch for equities sentiment heading into year-end. For now, the 50.0 Fib retracement level at 3,796 is the line in the sand that is being drawn:ADVERTISEMENT – CONTINUE READING BELOW Source link

The Czech National Bank (CNB) is expected to maintain its policy rate unchanged in its meeting today. Economists at Commerzbank expect the central bank to convince the market of its strategy. CNB will only consider a further rate hike if inflation turns out to be more stubborn  “CNB will likely rely on global as well as national inflation easing next year and will therefore most probably keep its key rate unchanged at 7% today.” “Since the CNB had expected 18.8% for November anyway it might use the lower 16.2% as an argument to justify its rate decision today. As a…

First Farmers & Merchants declares $0.23 dividend Source link

© Reuters. FILE PHOTO: Mexican Foreign Secretary Marcelo Ebrard speaks ahead of a meeting with U.S. Secretary of State Antony Blinken in the Treaty Room of the State Department in Washington, DC, U.S. December 16, 2022. Olivier Douliery/Pool via REUTERS By Diego Oré and Marco Aquino MEXICO CITY/LIMA (Reuters) -Peru declared Mexico’s ambassador to Lima “persona non grata” and ordered him to leave the country on Tuesday, Peru’s foreign minister announced, in the latest escalation of tensions between the two nations after Peru ousted Pedro Castillo as president. The abrupt order, a severe measure in the world of diplomacy, gives…

<p>BoJ announces unscheduled bond buying operation </p><p>Offers to buy</p><ul><li>JPY 100bn 3-5 Year</li><li>JPY 100bn 5-10 Year</li></ul> This article was written by Eamonn Sheridan at www.forexlive.com. Source link

Yesterday, the Bank of Japan unexpectedly tweaked its yield curve control (YCC) policy, raising its target for 10-year bond yields to 0.5% (previously 0.25%). The move reflects the central bank’s move towards policy normalisation, while also testing the market’s reaction to its exit from ultra-easy policy. The central bank later said that it was “only fine-tuning rather than withdrawing stimulus” and that it would “still increase the size of its bond purchases significantly”, but this still did not stop the market from whipping up a wave of volatility. In short, when the Bank of Japan is no longer as dovish…

WTI crude oil picks up bids to portray three-day uptrend. US Dollar bears the burden of BOJ-inflicted bond selling. Surprise fall in API inventories, upbeat headlines from China, Japan adds strength to the recovery moves. Weekly EIA oil stockpiles, US CB Consumer Confidence eyed for fresh impulse. WTI crude oil buyers jostle with a short-term key hurdle around $76.50 during the three-day uptrend on Wednesday morning. In doing so, the black gold cheers the broad-based US Dollar weakness, as well as cautious optimism in the market. Adding strength to the run-up could be the latest inventory data from the private…

© Reuters. FILE PHOTO: A man looks at his phone as he walks past a Telstra logo adorning a phone booth in the central business district (CBD) of Sydney in Australia, February 13, 2018. REUTERS/David Gray (Reuters) -The Australian Competition & Consumer Commission (ACCC) on Wednesday rejected TPG Telecom’s regional network-sharing agreement with Telstra (OTC:) Group, and said the deal would significantly weaken overall competition in the country. TPG’s shares tanked nearly 6% to a record low following the news, while Telstra slipped 0.1%. The broader market, meanwhile, was up more than 1%. In February, the telecom giants signed a…