The EURO now sits under 138.000 on the exchange rate, a key resistance level that will now surely break after European Inflation hit 8.1% for the month of April 2022, igniting the debate about whether the ECB should be raising rates at 0.50% increments instead of 0.25% increments as signaled by Christian Legard. With European Bond Yields climbing and paying a...
The EURO is likely to strengthen against the Canadian Dollar as the European Central Bank signals interest rates are going up in July and September, to move the overnight cash rate from -0.50% to 0.00%. The reason the EURO will strengthen is down to the fact that interest rate differentials will narrow from the market's previous expectation, so investors who are...
We are highly likely to see a strong recovery in the New Zealand Dollar Against the U.S Dollar as interest rates in New Zealand continue to rise. Markets expect the Reserve Bank of New Zealand to raise the cash rate to 3.50% by year-end, which will be a premium 0.75% to 1.00% Interest rate over the U.S. This means any investors holding short positions in NZD/USD...
The Euro is now highly likely to catch a strong bid against the Yen after the European Central Bank President Christine Lagarde said the Central Bank is likely to start raising interest rates in July and exit sub-zero territory by the end of September 2022. Interest rate differentials on Government Bonds will support the EURO higher. In this video I breakdown...
The Australian Dollar has weakened in recent weeks due to Iron Ore prices declining as China's zero covid policy has caused investors to fear a slowdown in the world's second-biggest economy. Australia exports 80% of Iron ore to China, so any slowdown in China will hit demand for Australia's commodity exports and put downward pressure on the currency. We also...
The Pound has extended its weakness against the U.S Dollar as the UK economy slips closer to a recession. The UK cost of living crisis, which is down to high energy prices, rising taxes, and now higher interest rates is increasing the public mortgage, credit cards, car loans, student debt and other debt payments, causing investors to question the amount of...
Since my last video, CAD/JPY, has pushed above ¥100.00 on the exchange rate. We now have the Bank of Canada talking about the possibility of 0.75% rate hikes, as inflation hit 6.70% this week, far above economists forecast for a rise to 6.10%. The Bank of Japan maintains its stance to use yield curve control to keep interest rates low, sighting low inflation...
The British pound continues to come under selling pressure as the UK grapples with high inflation, caused by high energy prices, supply chain issues, and a cost of living crisis forcing consumers to lose confidence in their future economic prospects and drastically cut back on spending. The UK economy is expected to fall into a recession, whilst a recession in...
The Canadian Dollar continues to strengthen against the Japanese Yen as the Bank of Canada continues to aggressively raise Interest rates to fight off high inflation. Japan's domestic inflation is in stark contrast as Japan continues to struggle to hit the Bank of Japan's 2.00% target. I show the historical difference in interest rates on 10Year Government bonds...
In this video, I breakdown why the U.S Dollar is bullish against the Japanese Yen and maintaining its strength against the Euro, as the central bank, ' The Federal Reserve", is raising interest rates aggressively in 2022 to deal with high domestic inflation. This is in contrast to the European Central Bank and Bank of Japan, which have pledged to keep interest...
The EURO is set to potentially strengthen as investors start pricing in four interest rate hikes by the European Central Bank over the next 9 months. Friday's Inflation data will be closely watched by the markets, as any beat above forecasts will put pressure on the European central bank to react. If ECB policy makers start coming out and hinting Rate Hikes are...
In this video, I explain how Ethereum and Bitcoin have been trading in tight correlation to the U.S S&P500 stock market Index. I will show you how to use historical Volatility, to know how much the two cryptocurrencies fluctuate on average per month, alongside price swings in the S&P500. Equipped this this knowledge, you will be able to see when the S&P500 pulls...
The Japanese Yen is fundamentally weak as low inflation in Japan is causing the Bank of Japan to keep interest rates low, at a time when other central banks in the U.S, Canada, Australia, New Zealand and the UK are raising rates to deal with high inflation in their domestic economies. The interest rate differentials and divergence in monetary policy are forcing...
In this video I breakdown why EUR/CAD continues to weaken to the downside as Higher Oil prices support the commodity-linked Canadian Dollar. I also breakdown how interest rate differentials favors investors to sell euros to Buy Canadian Government Bonds paying a significant premium over Bunds. Europe's economic outlook continues to turn grim as the war in...
In this video I break down why the Australian Dollar is bullish because Iron Ore prices are rallying due to the war in Ukraine. Iron Ore is Australia's key commodity export, therefore higher prices increases the demand for Australian Dollars. Watch this video to learn how commodities have an impact on certain currencies in the Forex market.
In this video I breakdown why the U.S Dollar is fundamentally bullish against the Japanese Yen. 1.) Higher Interest Rate in the U.S 2.) Bond Yield Differential 3.) High U.S Inflation pushing Rate Hikes From Federal Reserve We also have some key technical levels to watch out for at 120.00 on the exchange rate.
In this video I breakdown why the Euro continues to weaken against the U.S dollar as higher energy prices threaten European economic growth, alongside the market's expectations for Federal Reserve interest rate hikes giving further support to the dollar.
In this video, I breakdown why the pound has been going up in value against the Japanese Yen since 2020 as higher interest rates in the UK is attracting money out of Japan and into the UK. I also show why currency traders are only buying this currency pair as UK Rates make it profitable to hold this trade open overnight as you get paid FREE money into your...