Pepperstone

Pepperstone Broker

Energy markets are front of mind – we see crude into new cycle highs and riding the 5-day EMA – clients are progressively increasing short exposures, although we’re not at historically high skews. Nat Gas (NG) – the wild west of energy markets – has broken the $1.91 to $2.82 range it has held all year, and the Bollinger Band volatility squeeze is firmly on. EU...

Pepperstone Broker

As is typically the way in FX trading the breakout traders see a set-up on the higher timeframes and either the market uses these levels to fade the move, or the breakout fails to gain traction and ultimately reverses. Those seasoned traders who use breakouts for trade entry – often momentum and trend-followers – know the percentage of breakouts that lead to...

Pepperstone Broker

The BoJ would be comfortable with the reaction towards the recent tweak to its YCC program – there has been limited gyrations in Japanese equity markets and bank equity is about to break to new highs. Predictably, we’ve seen the 10yr JGBs grind higher to 63bp, but the market is firmly of the view that the back-up in JGB yields will not promote a rush from pension...

Pepperstone Broker

After a solid tightening of financial conditions over the week we watch to see if the negative tone spills over into the new trading week. On the week, the NAS100 fell close to 3%, with Apple closing below its 50-day MA; a factor that had been acting as a solid trend filter since late January. Instead of buying dips, could we be looking at selling rallies now in...

Pepperstone Broker

Last week was some ride and I feel like I’ve aged 10 years, but what have we learnt? The Fed and the ECB are almost done tightening and market pricing shows this front and centre. In the case of the US, core PCE and the Employment Cost Index (ECI) showed us that price pressures and wages are abating. However, the US Q2 GDP print grew at an above-trend pace (at...

Pepperstone Broker

It’s the week that every risk manager has on the radar. It’s time to get in front of the screen as this week has it all. We navigate corporate earnings from several global titans. We get several marquee economic data releases, central bank meetings from three of the world’s price makers, and we’re likely to hear of stimulus to be announced from China’s Politburo...