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Canadian Dollar Jumps on Energy Gains Ahead of OPEC+. Will USD/CAD Break Lower?

CANADIAN DOLLAR, USD/CAD, OPEC+, EVERGRANDE - TALKING POINTS The Canadian Dollar has been supported by higher commodity prices APAC equities, except ASX 200, went lower as Evergrande risks swirl High energy prices boost commodity currencies. Will USD/CAD go lower?   Asian equities were mostly softer today, despite a strong lead from the US on Friday. Uncertainties around Evergrande, OPEC+ and high energy price impacts appeared to weigh on investors’ minds. Main

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US Dollar Holds Gains Ahead of PCE, Consumer Confidence, and ISM Data

KEY TALKING POINTS: PCE, consumer confidence, and ISM data may give insight into USD positioning ahead of NFP next week. GBP/USD, NZD/USD and EUR/USD looking vulnerable despite small bounce.   The Dollar Basket (DXY) is at yearly highs after having its best weekly performance since June. The Dollar has been on a tear this week as currency traders position themselves for an earlier than expected rate rise after last week’s FOMC meeting left a hawkish feeling in markets

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S&P 500 Technical Damage Amid Deteriorating Sentiment, USD/JPY Slides

US Dollar, USD/JPY, S&P 500 Analysis and News: USD/JPY Slides Post Rebalancing. Sentiment in Equity Space Deteriorates. Equity markets are kicking off Q4 much how they closed off Q3, on the backfoot and continuing to follow its typical pattern (Figure 1). In turn, risk currencies are out of favour relative to safe-haven currencies and in particular the Japanese Yen. As I mentioned yesterday, I was tactically bearish USD/JPY, not only due to stretched topside momentum,

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Australian Dollar Grips on to Coal Train in Risk-Off Rout. Will AUD/USD Go Lower?

AUSTRALIAN DOLLAR, AUD/USD, COAL, CHINA, OPEC+ - TALKING POINTS The Australian Dollar had some yield support early, but not enough. China cracks the whip on their energy producers, adding to demand. High commodity prices, positive yields, what will break AUD/USD?   Overnight, US data was mostly in line with expectations. US GDP printed at 6.7% q/q growth for the second quarter against forecasts of 6.6% while initial jobless claims were a slight miss, coming in

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British Pound Technical Analysis - GBP/USD, GBP/CAD, GBP/NZD

BRITISH POUND, GBP/AUD, GBP/CAD, GBP/NZD - TALKING POINTS GBP/USD volatility took off as sterling plunged and now scopes new lows The move lower in GBP/CAD might have momentum but wider range is intact GBP/NZD has avoided Sterling weakness of late and consolidated. Will it last?   GBP/USD TECHNICAL ANALYSIS The recent move down in GBP/USD saw 2 previous lows breached at 1.3600 and 1.3572. These 2 levels are pivot points and could offer resistance. Previous

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Dividend Adjustments 4th October 2021 - 11th October 2021

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 4th October 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made. Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on

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FTSE 100 Technical Analysis: Can it Punch Through its Ceiling?

FTSE 100 TECHNICAL HIGHLIGHTS: The FTSE is coming off strong support, but… Has a fairly strong ceiling to punch through.   The FTSE 100 is making a strong comeback these days after hitting the bottom of a multi-month range and the 200-day moving average. The spring back has in focus a trend-line running lower from the January 2020 high created just before the pandemic roiled markets. In confluence with this trend-line, and perhaps more importantly, is the top-end

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EUR/GBP, GBP/USD Update: Sterling Weakness Subsides as Built-Up Positioning Unwinds

TALKING POINTS: Built-up hawkish expectations cause Sterling sell-off as sentiment stagnates. EUR/GBP and GBP/USD key levels to watch. EUR/GBP is trading at a two-month high as the Pound has seen its worst performance against the Euro since April. Sterling has been the clear underperformer this week as positioning for a hawkish BOE has caused a position unwind on risk-off sentiment. The moves were also intensified in GBP/USD as the US Dollar has surged over 1.2% this week

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The Euro Melts Lower Amid Rising Yields and Sinking Equities. Can EUR/USD Hold?

THE EURO, US DOLLAR, EUR/USD, NIKKEI 225, STAGFLATION - TALKING POINTS: The Euro languishes as energy prices raise concerns. APAC equities went lower as yields continue to rise. Stagflation threatens global recovery. Where will EUR/USD go? The Euro continued to threaten lower levels today as equity market routs continued on from the US lead. APAC shares went lower, except for a couple of Chinese indices buoyed as the PBOC added liquidity for the ninth day in a row.

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WTI, Brent Looking to Extend Gains as Supply Crunch Sees Oil Surge

KEY TALKING POINTS: Oil demand picks up as economies recover from the pandemic shutdowns. Power crunch in China unsettling oil traders.   Brent crude has dipped this morning after a 5-day rally ran out of steam after hitting a 3-year high just shy of $80 a barrel. It’s likely that profit-taking is behind yesterday’s rejection after a good rally but we may have some stagnation around this level as investors weigh up where to go next. The run-up in prices is leading on

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Brent Crude Oil Soars to a Three Year High on Supply-Demand Mis-Match

Brent Crude Oil Price, Chart, and Analysis Brent crude rallies on increased global demand. Natural gas prices hits a multi-year record high. Keep up to date with all market-moving data releases and events by using the DailyFX Calendar The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. The continued rollback of covid-19 restrictions in economies around the globe is driving demand ever higher with supply

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GBP/USD Forecast: GBP Breakdown Risks Heightened on US Dollar Charge

GBP/USD Analysis and News GBP/USD on the Backfoot. UK OIS Markets Price In Aggressive BoE Tightening. Room for Disappointment. UK Data to Slow Down. GBP/USD on the Backfoot A modest pullback in the Pound this morning, breaking back below the 1.3700 handle. Reminder that today is corporate month end (two days before actual month end), which typically coincides with USD stength throughout the session. Addtionally, the sizeable pick up in US yields with the 10Y on

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US Dollar Technical Outlook: Nearing an Important Test

USD TECHNICAL OUTLOOK: DXY trading towards important resistance test. A sustained breakout is possible, but conviction lacks. Price action may continue to contract through the rest of the year.   US DOLLAR TECHNICAL OUTLOOK: NEARING AN IMPORTANT TEST The US Dollar Index (DXY) is trending higher and on the verge of testing an important set of resistance levels as we head towards the final frame of the year. The August high at 93.72 and top-side trend-line r

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German Election Latest: EUR/USD Muted Following Election Results

EUR/USD Analysis & News SPD Wins Majority of Votes The Greens & FDP to Decide Between Traffic Light or Jamaica Coalition Euro Sees Muted Impact After Election Sees Status Quo Maintained German Election Shows Victory for Centre-Left The results: According to preliminary results, the SPD led by Olaf Scholz won the largest share of votes with 25.7% (+5.2ppts). The main opposition, the CDU/CSU were runners up with 24.1% (-8.9ppts), marking a poor night for

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British Pound (GBP) Forecast: GBP/USD Weighing Up Different Fundamental Drivers

GBP/USD Price, Chart, and Analysis Fuel shortages across the country need to be rectified immediately. BoE and Fed speakers will help steer GBP/USD this week.   The UK government is to suspend competition laws between oil firms to help get fuel to the parts of the country suffering most from the petrol shortage. Over the weekend long lines of traffic blocked UK roads as drivers queued to buy petrol before forecourts ran out of fuel, sparking fears that the supply chai

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The Week Ahead On The Markets

The Week Ahead Read about upcoming market-moving events and plan your trading week                                                                        Week commencing 27 September

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