Fundamental view: Gold price is on its way to the highest levels seen this year after recovering more than $220 since the bottom at the end of March. During the last week, Federal Reserve Governor Lael Brainard repeated that the Fed has the tools to guide inflation back down if it were to move persistently [...]
Fundamental view: The Australian dollar initially rallied during the course of the trading week but gives back the gains and reached the 0.76 level. Weakness in the Aussie may have been for a couple of reasons. The first reason is the drop in iron ore prices, with the Dalian Commodity Exchange (DCE) futures contract down over 17% [...]
Fundamental view: The US dollar has driven higher during the course of the week. The greenback has rallied significantly during the course of the week to break above the ¥110 level. Treasury Secretary Janet Yellen said that inflation would remain elevated through 2021 whereas Dallas Fed President Robert Kaplan noted that improving labor markets might warrant taper talks. [...]
Fundamental view: The British pound has taken the advantage of dollar weakness in the past week but could not take full advantage due to rising UK covid cases. Fed officials have taken a long list to the stage while repeating the same message that the rise in inflation is transitory while economy has a long way [...]
