Technical Insights

Investor and trading community is aware that the Japanese Yen is one of the currencies which has depreciated sharply against the US Dollar since the start of 2021. Before going deeper, it is important to look at the stance of the Central bank of Japan and the US FED to get more clues. As we know, majority of Countries like US, Europe, India, etc. are battling with higher inflation. To keep the inflation under control, the Central banks have started to increase the interest rates. Thus, there is a reversal in the interest rate cycles. However, the story of Japan is different because it has gone through severe deflation for many decades. Since 1989 Japan’s Inflation rate has failed to surpass above 4.5%. Due to this, the Japanese Central banks

Well, Crude price has been all over the place in the last couple of years. In the year 2020 we saw a major crash with negative rates on WTI Crude. Fast forward now to current Russia-Ukraine War where we saw WTI Crude test the highs near $129 which is about $20 away from the highs made in 2008. In the meantime, Brent Crude touched $138 which is nearly $10 away from the previous life time highs.   Current Market scenario is quite dynamic where every day we see new updates on the China Lockdown, OPEC+ supply outlook or any development on the War. This has actually opened up a range of scenarios and it is crucial to remain objective rather than follow the crowd.  

Gold continues to be in the limelight whether its in an uptrend or a downtrend. This commodity is always on the investors and traders radar! From the highs it has lost almost 20% and now seems to be ready to shift gears again. From an Intermarket perspective, US Dollar index (DXY) and US 10 Years T – Yields have an inverse co-relation with Gold. During 2020, DXY and US 10 Years T – Yields, both were tumbling which acted as good tailwinds for Gold, however post August 2020, Yields started to rise (from 0.49 to 1.77) due to which Gold failed to perform well and remained under pressure. Thus it is important to keep a close eye on Yields as well as DXY. US 10 Years T – Yield Daily chart: US

DXY trend: Looking at the trend of the US Dollar index (DXY) is very important to gauge the movement of Bullions and Base Metals, as these have an inverse relationship to this trend. While Bullions still account for other Geopolitical situations while factoring in the prices, Base Metals have a distinctly inverse relationship with the US Dollar index. US Federal Bank’s Policy:  In the last one and a half years, we saw the Dollar’s demise on the back of the US Federal Bank’s monetary policy. Weaker Dollar boosted base metal prices. In the wake of that, the US Dollar index seems to have taken greater support close to the level of 89.00 and has bounced back towards 93.73. In the September meeting of the US Fed,

The year 2020 was a roller coaster ride for the world of Financial markets. Last year around the same time, a majority of the crowd was talking about how low this market can go, and now fast forward to present scenario where a majority of the crowd is talking about how high the market will go. It is funny but a  proven fact (lesson) in the market that, “only one thing is certain in the market which is everything is uncertain.” US equity market is leading the ongoing rally in the global equity markets and one of the major reasons behind the same is US federal reserve’s stimulus of $7.7 trillion. This has flooded the market with liquidity. As is regarded by many pundits, Liquidity is the