Analytical reviews of the Forex market

26.03.2021 08:03

Markets Switched to a Risk Off Mode

Information and Analytical Department of Espero

This trading week ends on a risk off mode that finally has been established. Thus, we may expect developing trend in declining stock indices and crude oil together with strengthening U.S. Dollar to escalate. However, these trends are developing on a controversial macroeconomic background and debt market rebound. The macroeconomic data published this week turned to be quite positive. The business activity in Eurozone, the United States and United Kingdom continues to rise above neutral level. On one hand, it may be logical given seasonal economic recovery.

23.03.2021 08:03

Another Poker Round for Mr Powell May Send Yields to the Next Highs

Information and Analytical Department of Espero

Another trading week has begun mixed despite some relief on the U.S. Debt market. U.S. ten-year Treasuries’ yields stepped back to 1.68% from their highs at 1.75%. However, stock markets were not catching up with this break as European stock markets ended Monday mostly in the red zone, while American stocks gained led by high-tech NASDAQ 100, which rose by more than 2%. We may suggest that the next round of poker with the Federal Reserve Chairman Jerome Powell who is going to speak in a front of the Congress this week has begun.

19.03.2021 08:03

The Fed Approved Market Correction

Information and Analytical Department of Espero

The Federal Reserve meeting this week ended extremely mournfully for the market. Fed’s Chairman Jerome Powell has decided to continue bluffing, as he expressed no anxiety over rising debt market interest rates. Investors replied immediately with a rough response. U.S. ten-year Treasuries’ yields jumped to thirteen-month highs at 1.75% leaving stock markets no option for a continuous rally. A rapid rise of interest rates resumed throughout all maturities. Yield for long-term bonds are already above prepandemic level. However, this time U.S.

16.03.2021 08:03

Tension Rises Ahead of Fed Meeting

Information and Analytical Department of Espero

The tension is rising on financial markets, although it was no clear external appearance on Monday. However, even in this low volatility investors’ disquietude could be spotted. U.S. ten-year Treasuries’ yields are holding above 1.60% nudging the Dollar to strengthen. The broad market S&P 500 index was stumblingly trading around 3940 points. Crude prices were down by almost one percent. Gold prices as a safe haven asset were rising. Reasons of such concerns are clear.

12.03.2021 08:03

Stock Indices Run High

Information and Analytical Department of Espero

The second trading week in March is full of positive sentiment. Stock markets are on all-time highs as S&P broad market index soared above 3950 points, Brent crude prices went up to $69 a barrel, and U.S. Dollar is gradually loosing strength to other G7 currencies. Investors are full of optimism after U.S. congress has finally approved $1.9 trillion relief bill that according to U.S. Treasury Secretary Janet Yellen is “the most important thing is to get our economy back on track”. Maybe it is so.

05.03.2021 08:03

NonFarm Payrolls report may be mixed

Information and Analytical Department of Espero

Markets are demonstrating mixed sentiment ahead of the NonFarm Payrolls due to be released on Friday. Even prices of major instrument have not changed too much from the beginning of the week. S&P broad market index has stuck around 3800 points, gold prices are hovering the level of $1720 per troy ounce. Currency market is showing a poker face. Crude prices are the only with outperforming volatility after unexpected OPEC+ decision to leave production quotas virtually unchanged.

02.03.2021 08:03

S&P 500 on a fragile recovery path

Information and Analytical Department of Espero

New trading week has started mixed as stock markets are climbing with European stock indices gaining around 2% and U.S. stock indices advancing even higher by more than 2% to 3,900 points. On the other hand crude prices are going down forming potentially reverse pattern. The U.S. Dollar is strengthening against other major currencies. This controversial picture may point to a false rise of stock indices. However, this week may bring a stabilization in the stock market as investors would likely to wait for NonFarm payrolls data this Friday before opening any investment positions.

26.02.2021 08:02

Investors anticipate economic growth

Information and Analytical Department of Espero

Stock markets are suffering continues pressure from rising Treasuries yields that soared above 1.58% on 10-year T-bonds on Thursday as rising inflation expectations are mounting. A 13-month highs in yields returned the market in the beginning of 2020 just before the COVID-19 pandemic broke out. Should we expect another plunge in the stock market as we saw March last year? We shall see how the situation is evolving. For the moment the U.S technological sectors suffers the most. Nasdaq 100 lost more than 3% this week while Dow Jones keeps its gains of 1.

23.02.2021 07:02

Stock markets are likely to extend correction

Information and Analytical Department of Espero

The correction in the stock markets is increasing its depth as stock indices in the United States and Europe lost more than 0.5% on Monday. However, other markets turned to be unexpectedly stable. Brent crude prices jumped by more than 2.5%, gold prices gained more than 1.7% and returned in the wide trading range of $1800-1880 per troy ounce. The U.S. Dollar is slightly down despite a general rule that the Greenback should strengthen when stock markets are falling. So, we may witness asynchronous moves of different markets or investors do not believe the correction would sustain.

19.02.2021 08:02

Markets are on the edge of correction with a possible sell-off next week

Information and Analytical Department of Espero

The trading week closes on alarming note as major stock indices recorded a decline. German DAX fell by 0.16%, while British FSTE 100 that rose this week lost 1.4% on Thursday. U.S. stock indices are also in a red zone with Nasdaq posting loses over 1% and S&P broad market index tumbling by more than 0.8%. Reasons for such alarming sentiment is clear while the January producers inflation data in the United States showed a hike of 1.9% year on year, a fastest growth since 2009. Retail sales jumped by 5.3% month on month from the previous minus (-) 1%. So, a rise of 10-year U.S.