The Pound Sterling (GBP) finds temporary support on Tuesday after facing a sharp sell-off in the last few trading days due to rising yields on the United Kingdom (UK) gilts.
EUR/USD continued to explore the bearish side of the charts on Monday, declining into the 1.0200 handle for the first time since late 2022, etching in a fresh 26-month low before staging half-hearted recovery later in the day.
You can see that during the trading session on Friday, the US dollar really took off against the Swiss franc as the jobs number in America came out hotter than anticipated.
The recent steepening of the yield curve is what is known as a bear steepener where long-term rates rise faster than short term rates. That type of steepening is not associated with recession or economic slowing.
In the last trading session of last week, the bulls’ control over the USD/JPY pair culminated in a move towards the resistance level of 158.88, the highest level for the pair in six months.
The Australian Dollar to US Dollar currency pair (AUDUSD) is currently in a counter-trend phase, as indicated by Elliott Wave Analysis on the daily chart.
Especially at this cycle’s perilous turning point, politics and policymaking have become fundamental to market, financial, economic, and geopolitical analysis
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close.
EUR/GBP extends its upward momentum as the Pound Sterling struggles amid mounting concerns over stagflation in the UK. The Pound Sterling faces challenges as a 30-year UK gilt yield has climbed to 5.36%, its highest level since 1998.
USD/CHF trades in positive territory for the fifth consecutive day round 0.9170 in Monday’s early European session. The stronger US December employment report supports the USD. Trump policy risks and safe-haven flows could boost the CHF.
GBP/JPY tests the lower boundary of the descending channel at 190.80 level. The 14-day RSI declines toward the 30 level, reinforcing the persistent bearish bias. The nine-day EMA at 194.52 appears as the primary resistance.
Last week saw continued risk-off sentiment, with fears of President-Elect Trump's recent tariff threats, as well as slowing growth data in many G20 nations. This was accompanied by a bullish focus on the US dollar, with US treasury yields rising.
The US dollar initially fell against the Canadian dollar during the course of the trading week, before it then turned around to form a massive hammer. This seemingly demonstrated just how much upward pressure has been seen in the currency pair.
Bitcoin’s decline may be linked to EU/US MiCA regulations targeting Tether. In the silver market, we’re seeing tightness driven by anticipated tariffs.
Forward rates suggest three-month Treasury yields could rise by 15-20 basis points in the next 12-18 months, implying a potential rate hike if economic data remains strong and inflation persists. The steepening yield curve supports this outlook.
