Although everyone agrees that the electric revolution is looming, there is no consensus about the pace and the detailed form of the upcoming shifts in the automotive industry. In particular, some miners and analysts believe that fuel cell cars will spur or at least support the demand for platinum and palladium. For example, the world’s three largest platinum producers (Anglo American Platinum, Impala Platinum and Lonmin) invested in projects related to fuel cell technologies. Indeed, the white metal is used in catalysts in fuel cells vehicles, where power comes from combining hydrogen and oxygen over a platinum catalyst. The game is defin...
Today is the day. Both Draghi and Yellen speak later at Jackson Hole. Although expectations for market moving news have been damped down, the market might be getting a little too complacent. Over the past month or so, bond markets have been drifting higher on the assumption the Fed would take a dovish wait-and-see approach to the introduction of quantitative tightening (widely expected to be started in September.) On the other side of the Atlantic, investors are increasingly pricing in a slower tapering to the ECB’s quantitative easing program, believing Draghi would rather overshoot than risk pulling a Trichet by tightening and then be for...
A battle between gold bulls and bears is taking place just below year highs and the upcoming Jackson Hole Symposium could be the catalyst for a big move. Record futures demand & ETF outflows Last month we witnessed record demand for gold futures. Of course, the sabre rattling between the US and North Korea was a key driver behind this, but dig a little deeper and a curious dichotomy is apparent. That’s because, in the same month, we also saw significant outflows in gold-backed ETF’s. The difference between gold futures and gold-backed EFT demand can be explained by hedge funds and market speculators favoring futures and longer-term fu...
The bullish trend is present in EUR/USD currency pair, 15 minutes chart. The price of EUR/USD currency pair is going to rise up now on a short-term basis to create a Bullish Zig Zag corrective Elliott wave pattern and Spot Forex traders should consider taking a possible buy trading chance. Strong key support level is present at 1.1772 price level which is the ending point of Bearish corrective wave B leg. In my opinion, price action in EUR/USD currency pair has completed bearish wave B corrective Elliott wave pattern. Based on Elliott wave analysis, Bullish Zig Zag pattern is now in progress. So, I expect the market to first move sideways an...
One of the big stories this year has been the weakness in the U.S dollar after a strong run in the second half of 2016. A confluence of factors is affecting the euro—from politics in the U.S. to monetary policy shifts that may occur later this year in the eurozone. This has caused a shift in the attention of investors, from a focus on currency-hedged strategies that have the goal of isolating the equity market returns alone to “double decker” strategies that add currency risk on top of the equity returns. Strategically, I believe there is a case to hold hedged strategies over the long run to reduce the uncertainty that comes with c...
AUDUSD remains in the uptrend from 0.7807, the fall from 0.7962 is likely correction of the uptrend. Another rise to test 0.7962 resistance could be expected, a breakout of this level could signal resumption of the uptrend, then next target would be at 0.8030 area. Support is at 0.7807, only break below this level could trigger another fall towards 0.7700....
I don’t want to start a religious war here but clearly, in 2017, BitCoin has vastly outperformed Gold as my first chart shows. I am still very positive that Gold and the PM sector will have its time in the sun again, but GBTC has given me another asset to trade while Gold and PMs have largely consolidated sideways for most of the year. That said, the move in BitCoin appears to me to be in Wave 5 of an Elliott Wave pattern which will lead to a major top. Once it tops, according to Mr. Elliott, we will very likely see an ABC correction which will move price much lower than most expect. That is what is needed to re-set investor sentiment to be...
EUR/USD The EUR/USD pair had a very quiet session on Thursday, as we continue to see this market offer buyers underneath. With the speeches by both Janet Yellen and Mario Draghi during the day, it’s likely that this will be the focus of the Forex world. When you look at this chart, I believe that this market is forming a bullish flag, and it’s likely that we will break out to the upside after the statements during the day, especially if Mario Draghi does not mention the value of the currency itself. The 1.17 level underneath should be supportive, and I think it based upon the bullish flag, we should probably go looking towards the 1.20 le...
Short-term USDJPY Elliott wave view suggests that the decline from 7/11 peak is unfolding as a double three Elliott wave structure. The decline to 108.71 low ended Minor wave W and Minor wave X bounce ended at 110.95 peak. Subdivision of Minor wave Y is unfolding as another double three structure of a lesser degree. Minute wave ((w)) of ((Y) ended at 108.59 low and our revised view suggests Minute wave ((x)) of (Y) bounce remains in progress to correct cycle from 8/16 peak towards 110.05 – 110.35 before the pair turns lower. We don’t like buying the proposed bounce, and as far as pivot at 110.95 remains intact, expect sellers to appear...
A senior Saudi official said on Thursday that his country is weighing the possibility of funding itself party in Chinese yuan, a move which would strengthen economic ties between the countries and give Riyadh more financial flexibility.The potential partnership would also be considered a huge success for China, the biggest consumer of Saudi oil, and would bring China one step closer to turning the yuan into a top international currency. Saudi Arabia is looking to raise money not only to cover its budget deficit but also to finance investment projects that would inject capital directly into the country’s economy and create more jobs.China ha...