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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- Since the start of the year, the surge in geopolitical risk has led to a strong performance in ‘safe havens’ USD and Gold.
- Correlations between Gold and DXY index (daily returns) have been soaring, with the 3M correl bouncing back to positive territory in the past month (see chart).
- A simultaneous rise in both USD and Gold has historically been perceived as a sign of market stress by investors.
- Previous spikes in Gold/DXY correlations generally followed economic or/and market shocks (Covid, Brexit, Eurozone crisis…).
- Risk off environment has been mainly driven by the renewed geopolitical tensions with Western allies preparing for new sanctions.
- USD index broke above the psychological 100 level in today’s trading session; next level to watch on the topside stands at 100.5560.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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