Faraday Research

“Come with me and we’ll write that brighter future. Come with me and we’ll make that change. Come with me as we rise to meet this moment. Come with me and together let’s seize the day.” Lyrics from the first platinum single by Backstreet Boys / One Direction / a.n.o.t.h.e.r boy band? (delete as appropriate). […]

EUR/USD EUR/USD spent the majority of last week oscillating within a 50 point range before breaking decisively lower on Friday’s US jobs data. The intense period of consolidation which preceded Friday’s sell-off is significant because it increases the probability of continued selling pressure. We certainly see scope for a press down into the 1.0500 marker. […]

We addressed the advance in the yen a few weeks ago as risk-off sentiment pervaded the markets. The reflation trade had been deflated by the Trump administration’s setback regarding healthcare reform. Markets, more significantly, further questioned the Fed, the supposed ‘dovish hike’ and their desire to increase interest rates at least three times this year. […]

Global cruise operator Carnival delivered a bullish earnings update on Tuesday, upping its full year EPS guidance by over 4%. Below, I take a closer look at the numbers and undertake a quick technical review of the stock. Earnings Review Advanced bookings for 2017 and average price well ahead versus the year prior as well […]

The day has finally arrived – for those who voted for Brexit it is a day to celebrate as a bonfire is put under all those ‘banana’ shaped European regulations. Brexit will benefit everyone by expanding wealth and liberty so the 52% say. In contrast, those who voted to remain are labelling today Black Wednesday […]

Investor sentiment and equity markets have tumbled as of late. The risk-off move and subsequent shift to defensives as well as safe haven currencies has resulted in the FTSE 100 falling over 100 points from Wednesday’s highs and US stocks recording their first 1% daily decline in 109 sessions. Although no precise catalyst for this […]

It’s fascinating when thinking of what to write each week that sometimes, the topic “du jour” is staring right at you. In this case, our daily routine includes what currencies are the best and worst performers of the year. In top place of course is the aussie which has been top of the charts for […]

After last week’s flurry of central bank policy statements, we have a much calmer looking calendar ahead of us this week. The reduced levels of event risk should create a platform for some trends to develop. Here’s a technical snapshot of how the major pairs are shaping up. EUR/USD EUR/USD’s recovery continued last week following […]

On the back of last week’s Fed economic policy projections indicating that only a further two US rate hikes are likely in 2017, the dollar weakened and commodities rallied. This in turn resulted in the miners rallying powerfully. To put this in perspective, FTSE 100 mining stocks were up on average over 4% the day […]

We’ve had a stacked calendar of risk events already this week, with wild swings in sterling and oil to kick off proceedings. There have been new calls for referendums, multiple central bank meetings are on the horizon and Dutch elections will highlight if the populist theme will further reverberate into Europe. Of course, we do […]