Fundamental Analysis

Signs of Persistent Inflation in the NFP Report Highlight the Importance of the US CPI This Week

European equities hold in green while S&P 500 futures consolidate near the June high (4200 points) ahead of a possible breakout, as the strong labor market report on Friday reduced uncertainty in...

Goldman Calls for Caution as Bull Market is yet to be Justified by Strong Economy

According to a note from Goldman Sachs onThursday, US equities are headed for another big sell-off if economic datafails to improve quickly to justify the latest leg of the rally.Goldman's Cecilia...

July NFP Preview: “Bad News is Good News” Reaction is Highly Likely

The dollar retreated 2% from yearly highs and appears to be primed for a rally which could be triggered by the labor market report. However, the reaction of the US currency may prove to be...

Decreasing US Economic Uncertainty Pushes Equity Prices Back into Bull Territory

Incoming data on the US economy continues to surprise on the upside, triggering massive unwinding of recession bets and luring investors back into risk assets on decreasing uncertainty. One such...

Upbeat US ISM Release Suggests Hopes of Fed Dovish Shift may Fade Quickly

Provocative from a Chinese point of view, Nancy Pelosi's visit to Taiwan and the promised tough response from the Chinese authorities met with a rather tepid market reaction yesterday; the main US...

Despite Risk of Slowing Fed Tightening, Dollar Correction may be Over and here is why

The planned visit of US House Speaker Nancy Pelosi to Taiwan has the potential to exacerbate relations between the US and China, which in the foreign exchange market will be expressed in the...

EU Inflation Breaks to a New High, Driving Higher Recession Risks

Annual inflation in the Eurozone in July accelerated to 8.9%, showed a report released on Friday. This is a new all-time high. In June, inflation was 8.6% and in May, 8.1%.Inflation in the Eurozone...

Was Market Reaction to the US GDP Contraction Too Emotional? Looking Under the Hood, it may Seem so

Demand for risk increased markedly, greenback declined and US bond yields took out recent lows (2.8% for 10-year bonds, 2.9% for 2-year bonds), finding an equilibrium at the lowest levels since April,...

FOMO Friday: USDJPY Collapses From Highs

As the final week of July comes to a close the approaching summer period is leaving markets anything but quiet. Once again this week, we’ve seen a slew of key developments including the July FOMC, EU...