CNBC Comment: May could be a stock-picker’s market April 21, 2014 AS WE approach the month of “sell in May and go away”, markets remain range-bound, if not directionless. The sell-off in emerging markets has been halted for now (even though the supposed reason for this, US tapering, is ongoing), and many of these markets recovered substantially during the first quarter. Flows into Europe are continuing [...]
DailyFX Tips & Picks: Why traders should care if the market is risk on or risk off April 21, 2014 WHEN trading, you often hear the expression “risk on/ risk off”. It’s a quick way of explaining whether the market is happy to take more risk by buying high yielding currencies, or to reduce risk exposure by shifting assets to cash and bonds – which usually means buying the US dollar and Japanese yen. In [...]
DailyFX Tips & Picks: Analyst’s pick April 21, 2014 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Stay short euro-Aussie, short euro-dollar Expertise: Fundamental and technical analysis with risk management Average time frame of trades: A few hours to a few weeks Over the past five years, April has been the worst month of the year for the US dollar, and 2014 has proven no different. [...]
Ukraine will only be the start April 21, 2014 Traders set to increasingly feel the pinch from flare-ups in petro-states FOR ANY traders not paying close attention to energy markets, recent events will have come as a rude awakening. Brent crude shot up from just above $104 per barrel in February to over $109 at the end of last week, while energy firms embroiled [...]
Why Europe’s options for diversifying its energy supplies are strictly limited April 21, 2014 CONFLICT in Ukraine has added another major geopolitical risk for energy markets in 2014. Gazprom’s cancellation of gas price discounts in Ukraine at the start of April significantly raises the risk that Russia will use short-term gas supply cuts for political leverage. While a short-term disruption this spring or summer would have muted market impact [...]
Geopolitical risks to support the oil price – despite demand growth drop April 21, 2014 THE BOOST the energy sector received up until early March is unlikely to be repeated as we move into the second quarter. Oil traders will be keeping an eye on several issues. China, the world’s biggest importer of oil, saw a dramatic reduction in February imports, after a record high in January. If this trend [...]
Eurozone QE: Why and how Draghi may pull the trigger April 14, 2014 The ECB will opt for a massive sum to force the euro down DESPITE the strongest signs yet that the European Central Bank (ECB) will act to tackle disinflation, markets remain unconvinced. ECB president Mario Draghi, speaking on Saturday, said that a continued strengthening of the euro (which the ECB believes has knocked up to [...]
CNBC Comment: Investors are warming to sickly France April 14, 2014 MARKET darlings have been feeling the pain of rejection. Now safer dividend stocks are the new best thing, but curiously there is another contender for reallocating funds – France. The benchmark CAC 40 Index, which delivered double the pace of growth of the Dow Jones Industrial Average in 2013, with returns of 15 per cent, [...]
DailyFX Tips & Picks: The simple technique of trading FX market breakouts April 14, 2014 MOST of the time, trading a breakout is a simple way to trade the markets. It was one of the first few techniques I learnt when I started to trade FX back in 2006 and, as a well-documented trading edge, it has been used for many decades. It is also a particularly effective technique when [...]
DailyFX Tips & Picks: Analyst’s pick April 14, 2014 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Stay short euro-Aussie, short euro-dollar Expertise: Fundamental and technical analysis with risk management Average time frame of trades: A few hours to a few weeks As global central banks diversify away from the US dollar, and as the Eurozone continues to progress from the depths of its crisis, we [...]