Author: FX
The Carry Trade strategy is widely known and used, especially among institutional investors. It consists of borrowing in a currency with low interest rates to invest in products denominated in currencies with higher yields. For example, a global investment firm could finance itself by issuing 10 year Yen denominated bonds at 0.70%, exchange the currency and invest in 10 year Italian bonds at 4.35% or in a Pharmaceutical US stock with a 6% dividend yield. It is quite a cautious strategy that works thanks to different cash flows. Another interesting point is that the currency being sold – which has…
Trading Leveraged Products is risky The USDIndex has moved up from 103.00 as US debt ceiling talks progressed but no deal – President Biden “”default is off the table”, House Speaker McCarthy “I believe we can get a deal done,”. US stocks were flat into close, although FUTS are higher today. Yields were the main drivers again with 2yr & 10yr at 7-week highs. Bullard ( 2 more hikes) & Kashkari (possible June pause but rates may have to go north of 6%) remained Hawkish. Asian stocks rallied but are closing lower. USDJPY remains close to 6-mth highs, Gold slipped to…
The eurozone is scheduled to print a fresh batch of PMI readings today! Can this spur a bounce or break from EUR/AUD’s triangle support? On the hourly chart below, you can see that the pair formed lower highs and found support at the 1.6210 area, creating a descending triangle formation. EUR/AUD 1-hour Forex Chart by TV EUR/AUD has been stuck inside this consolidation pattern for more than a couple of weeks already, and price just bounced off the resistance again. The pair is now halfway through on its move down to the triangle bottom, but technical indicators have yet to…
For the most part, we are holding more or less the same in the major currencies space with exception to a decline in the yen. USD/JPY has now worked its way back above 138.00 as buyers keep poised in search of a push towards 140.00 next. That comes as Treasury yields pull higher, with 10-year yields rising back above 3.70%.Besides that, tech stocks continue to shine with the Nasdaq rising further and potentially eyeing the highs from August last year at 13,181. That is keeping the S&P 500 knocking on the door of its own upside breakout but value stocks…
Share: AUD/USD fades bounce off intraday low, turns bearish after sluggish week-start. Mixed prints of Aussie PMIs, hawkish Fed concerns join hopes of no US default to weigh on AUD/USD. Cautious optimism in the markets, sluggish yields fail to lure bulls. AUD/USD portrays a downbeat performance on early Tuesday, following a sluggish start of the week, as it takes offers to reverse the mid-Asian session rebound from intraday low to print mild losses around 0.6650 by the press time. In doing so, the Aussie pair bears the burden of the firmer US Dollar amid hopes of avoiding the…
I’m keeping it simple with a textbook trend play on the hourly chart of AUD/CHF today. As you can see on the chart below, the pair has been cruising inside a descending channel with its lower highs and lower lows. Price is currently bouncing off support and might be in for a pullback to the channel top again. Do you think these levels will still hold? AUD/CHF 1-hour Forex Chart by TV AUD/CHF is already testing the 38.2% Fibonacci retracement level that lines up with the mid-channel area of interest. If this is enough to keep gains in check, the…
alengo/E+ via Getty Images Microvast (NASDAQ:MVST) -24.1% post-market Monday after Reuters reported the U.S. Department of Energy canceled a $200M grant after lawmakers cited concerns over its alleged links to China’s government. The DoE had been in talks with Microvast (MVST) over the grant to help build a plant in Tennessee, but two D.C. lawmakers reportedly criticized the deal in a letter to Energy Secretary Jennifer Granholm, saying the company had ties to the Chinese Communist Party; details about the alleged ties are not known. The grant had been set to support work by General Motors (GM) and Microvast (MVST)…
© Reuters. FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration By Rae Wee SINGAPORE (Reuters) – The dollar touched a six-month high against the yen on Tuesday as expectations grew that U.S. rates will remain higher for longer and as the debt ceiling impasse kept risk sentiment fragile. Among a slew of Federal Reserve heavyweights who spoke on Monday, some hinted that the central bank still has more to go in tightening monetary policy. Minneapolis Fed President Neel Kashkari said that U.S. rates may have to go “north of 6%” in order…
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and…
Share: GBP/USD has come back inside the woods as investors have sidelined ahead of US borrowing cap issues. US Biden believes that a deep dive into tax loopholes is necessary to ensure that the wealthy class should pay a fair amount of tax. The Cable formed a Head and Shoulder pattern, which indicates a bearish reversal after a breakdown of the neckline placed from 1.2440. The GBP/USD pair is displaying a sideways auction in a range of 1.2420-1.2470 from Monday. The Cable is inside the woods as the investors are awaiting more developments over US debt-ceiling issues as…