All Articles

US dollar recovers on hawkish FOMC minutes The US dollar spent most of last night under pressure from the omi-gone rally, until the release of the hawkish FOMC minutes. The committee members felt inflation risks were more persistent and to the upside, and there was general agreement that the taper should be accelerated with three tentative rate hikes pencilled in. With US yields rising after that, the US dollar reversed most of its losses intra-day, leaving it only slightly lower and marking th

06-01-2022 05:10 GMT by Jeffrey Halley

Asia follows Wall Street south

Hawkish FOMC minutes send equity markets lower Wall Street had a torrid session as a hawk FOMC minutes highlighted the amount of post-omicron speculative longs positions that were out there. Technology came in for particular attention, the Nasdaq suffering its biggest one-day drop in nearly a year.

06-01-2022 04:51 GMT by Jeffrey Halley

The street was clearly long Omi-gone

US tech stocks sink after FOMC minutes Greetings from day four of managed isolation in New Zealand, and no, I’m not a tennis player. All the chatter overnight was about the implosion on tech stocks in New York after seemingly hawkish FOMC minutes from the December meeting.

06-01-2022 04:34 GMT by Jeffrey Halley

Oil pares gains after EIA, gold rises

Oil Crude prices tentatively pared gains after the EIA crude oil inventory report posted a smaller-than-expected headline draw, while gasoline demand plummeted the most since April 2020. The EIA report was a mixed bag that didn’t have anything to change the tight outlook for the oil market. A headline draw of 2.14 million barrels last week was the sixth consecutive decline, but the focus was on big builds with gasoline and distillate inventories, which were largely due to seasonal factors. Bo

05-01-2022 13:07 GMT by Edward Moya

Tech slide deepens as yields rise, ADP impresses, bitcoin steadies

Tech stocks remained under pressure after a robust private payrolls report sent Treasury yields higher. Equity traders are still betting on a strong US economy and that has them rotating out of big-tech and embracing cyclicals. Ahead of what will likely be some rather hawkish Fed minutes, with the exception of the rotation trade, US stocks are struggling for direction. The first half of the year will be all about a strong US growth outlook that should benefit cyclical stocks, but a sustained p

05-01-2022 12:51 GMT by Edward Moya

Euro recaptures 1.13, German PMI declines

The euro started the New Year with sharp losses, but the currency has rebounded on Wednesday, posting gains of 0.44% and punching above the 1.13 level. German Services PMI contracts Germany's service sector showed contraction in December, falling below the 50-level for the first time in eight months. The PMI fell from 52.7 to 48.7 points.

05-01-2022 12:11 GMT by Kenneth Fisher

Oil running on empty gold eyes FOMC

Oil running on fumes The oil price recovery may be starting to run on fumes after OPEC+ confirmed what markets had been pricing in over the last couple of weeks; that omicron won't have an overly detrimental impact on crude demand. In continuing its 400,000 barrels per day, monthly increases, the group offered further comfort to investors that the economic impact is likely to be minor and short-lived. The question now is whether the group can meet quotas which have reportedly been a challenge

05-01-2022 10:53 GMT by Craig Erlam

Equities push higher as interest rate concerns resurface

Another positive session in Europe on Wednesday, as investors take the wobble in US tech a day earlier in their stride. Markets remain optimistic about Omicron Investors eventually got their Santa rally and it seems that optimism has carried through into the new year. Evidence that omicron is not as severe as previous strains, despite spreading far faster, is offering hope that restrictions will be short-lived and the economic damage minimal. As I've said previously though, we can often read

05-01-2022 10:43 GMT by Craig Erlam

Pound edges higher on Johnson Covid remarks

The British pound has posted slight gains on Wednesday. GBP/USD rose to 1.3557 on Tuesday, marking a 7-week high. Johnson says no to further restrictions The British pound ended 2021 on a strong note, gaining more than 2% in the last two weeks of the year.

05-01-2022 10:15 GMT by Kenneth Fisher

Market Insights Podcast (Episode 278)

OANDA Senior Market Analyst Craig Erlam previews the day's market news with Jonny Hart. They discussed the markets start to the year, OPEC+ and previewed the Fed minutes.

05-01-2022 07:54 GMT by Craig Erlam

USD/CAD - building permits, FOMC minutes next

The Canadian dollar is trading slightly above the 1.27 line in the European session. Looking at today's schedule, Canada Building Permits for November is expected to accelerate to 2.3%, up from 1.3% a month earlier.

05-01-2022 07:16 GMT by Kenneth Fisher

Oil rallies, gold gains ground

OPEC+ can’t dent oil Oil prices rallied overnight, despite OPEC+ announcing its pre-planned 400,000 bpd increase in monthly production. The omicron is omi-gone trade continued to hold sway, with its brighter outlook for world growth and oil consumption lifting oil prices, aided by larger than expected drawdown from private US API Crude Inventories. Brent crude rose by 1.60% to USD 80.15 overnight, with WTI climbing by 1.60% as well to USD 77.20 a barrel.

05-01-2022 05:28 GMT by Jeffrey Halley

A mixed US dollar performance

US dollar gets lift from rising US bond yields The US dollar had a mixed night, rising versus the major currencies and the Asian currency grouping, as firm US bond yields sparked yield differential nerves. Conversely, the same post-omicron sentiment propelling stock markets and bond yields higher had a positive effect on the usual sentiment barometers.

05-01-2022 05:15 GMT by Jeffrey Halley

Market-Trends-Stocks-Bonds-Equities-forex-currencies.jpg

Asia follows New York’s value versus growth

Asia markets mixed Overnight, Wall Street went looking for the winners in an inflationary environment and as a result, loaded up on the Dow Jones at the expense of the Nasdaq, mostly on the premise the Fed inflation hunting will resume as the global recovery bids omicron goodbye. The S&P 500 was almost unchanged at -0.06%, but the Nasdaq tumbled by 1.33%, while the Dow Jones added 0.58%.

05-01-2022 04:56 GMT by Jeffrey Halley

Markets flirt with the inflation trade

US treasury yields head higher Seemingly, the sharp rise in US yields this week has sparked a move from growth to value, or as I put it, from the Nasdaq to the Dow Jones. Whether it lasts is another thing altogether, with such rotations running out of steam over the past 18 months, without really ever gathering momentum.

05-01-2022 04:36 GMT by Jeffrey Halley

Commodities and Cryptos: Oil rallies after OPEC+ agrees on more production, Gold rebounds, Bitcoin steady

Oil Crude prices are rising again as OPEC+ grows more confident that the global crude demand outlook will only take a limited hit from the omicron variant. The plan to gradually return production can move forward as OPEC+ anticipates a tighter market in the first quarter. When you factor in that many countries are struggling to hit their quotas, even Russia, the oil market should expect this lack of capacity will keep prices heading higher throughout the year. WTI crude is back above many ke

04-01-2022 15:54 GMT by Edward Moya

US Close: ISM shows pricing pressures ease, Jolts show the Great Resignation continues, Fed's dove sees 2 hikes in 2022

It wasn’t much of a rally, but we did get a Santa rally. The second trading day of the New Year marks the end of the Santa rally and more importantly the latest updates over how quickly global supply constraints are easing, but sadly that might not last due to omicron. US stocks could not hold onto earlier gains as tech stocks got pummeled over fears that Treasury yields will go much higher.

04-01-2022 15:54 GMT by Edward Moya

Oil extends gains, gold vulnerable

Oil well supported after OPEC+ assessment Oil prices are extending gains after the OPEC+ meeting today, at which producers agreed to continue to increase output by 400,000 barrels per day, next month. At the last meeting, the group agreed to continue with planned increases in January but made clear it could make adjustments at any point if omicron proves to be a significant drag on demand. It's clear based on today's meeting that downside risks to demand from the new variant never materialized

04-01-2022 14:54 GMT by Craig Erlam

Don't read too much into early New Year moves

An interesting start to the year, with Europe once again posting large gains on Tuesday as the US indices have mixed fortunes. I always feel too much is read into late December and early January trading, with Santa rallies being overly celebrated and the doom and gloom of the opening month of the year way overdone. The start of the year hasn't offered the doom and gloom yet, although US tech stocks getting whacked today may make some a little nervous. As many return to their desks following an

04-01-2022 14:47 GMT by Craig Erlam

CAD climbs on soft US data, risk-on mood

The Canadian dollar continues to show strong movement early in the New Year. USD/CAD is currently trading at 1.2674, down 0.56% on the day. ISM Manufacturing underperforms The first tier-1 events in 2022 out of the US disappointed, missing their estimates.

04-01-2022 11:33 GMT by Kenneth Fisher

All news & analysis