Inflation will not moderate, it is a runaway train
Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Access both platforms from your single Saxo account.
NY Open: Greenback grinding out gains
Michael O’Neill
FX Trader, Loonieviews.net
Summary: The dollar is in demand after Friday's nonfarm payrolls bonanza.
The US dollar is pushing higher in New York trading. The moves are marginal, but the direction is uniform. Friday’s blowout nonfarm payrolls release may be contributing to greenback demand as it shows US economic performance continuing to outpace the country's G10 peers. Also, the latest news from the Eurozone and the UK haven’t provided any impetus to buy those currencies.
GBPUSD traded with a negative bias in a tight range. UK officials met with Eurozone Secretary General Martin Selmayr, who tweeted afterwards: “The meeting confirmed that the EU did well to start its no deal preparations in December 2017.”
Support in the 1.3040 area held and prices recovered to 1.3075 by 14:00 GMT.
USDJPY added to European gains, punching through resistance at 110.00 to test 110.15 aided by a small rise in US Treasury yields. The general US dollar demand is undermining EURUSD. US dollar selling pressures may abate slightly because of soft Factory orders data (-0.6% versus a forecasted 0.2%)
USDCAD traded steadily higher throughout the morning coinciding with a plunge 3.6% in oil prices in the same period. WTI dropped from an opening level of $55.36/barrel to $53.36/b as of 14:00 GMT which has entirely erased the Friday/Monday rally.
Wall Street traders may be suffering lingering effects from Sunday’s snoozer of a Super Bowl game. The major indices opened flat which is where the Dow Jones Industrial Average and the S&P 500 sat as of 14:00 GMT. The Nasdaq manages to squeeze out a 0.50%. Alphabet (GOOGL: Nasdaq) reports after the close.
US markets may be a tad reluctant to get too involved due to a lack of top-tier economic reports President Trump’s State of the Union address on Wednesday.
GBPUSD traded with a negative bias in a tight range. UK officials met with Eurozone Secretary General Martin Selmayr, who tweeted afterwards: “The meeting confirmed that the EU did well to start its no deal preparations in December 2017.”
Support in the 1.3040 area held and prices recovered to 1.3075 by 14:00 GMT.
USDJPY added to European gains, punching through resistance at 110.00 to test 110.15 aided by a small rise in US Treasury yields. The general US dollar demand is undermining EURUSD. US dollar selling pressures may abate slightly because of soft Factory orders data (-0.6% versus a forecasted 0.2%)
USDCAD traded steadily higher throughout the morning coinciding with a plunge 3.6% in oil prices in the same period. WTI dropped from an opening level of $55.36/barrel to $53.36/b as of 14:00 GMT which has entirely erased the Friday/Monday rally.
Wall Street traders may be suffering lingering effects from Sunday’s snoozer of a Super Bowl game. The major indices opened flat which is where the Dow Jones Industrial Average and the S&P 500 sat as of 14:00 GMT. The Nasdaq manages to squeeze out a 0.50%. Alphabet (GOOGL: Nasdaq) reports after the close.
US markets may be a tad reluctant to get too involved due to a lack of top-tier economic reports President Trump’s State of the Union address on Wednesday.
Latest Market Insights
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)