|

On the radar — Gold, ever the eccentric traveller

Nvidia: Range without breakout — boxed in $179–$185, watching for the first crack.

China’s AI fever — Cambricon is still vertical, STAR 50 is still overheated, mania mode is engaged.

Gold: CTAs reloading — $10bn of flow lining up, volatility the joker card.

Euro: Chasing at 1.1600 — France flare fades, hunting entries above old patience point.

Markets at times resemble a train station more than a battlefield — some locomotives idling, some overheating, others quietly switching tracks before the crowd notices. Nvidia, for instance, looks like a sleek engine that has pulled into a siding. The range between $179 and $185 is less a cage and more a resting platform, with the 50-day moving average acting like the guardrail keeping it from rolling backward. This isn’t exhaustion as much as recalibration; the crew is catching its breath before deciding whether the next run is uphill or downhill.

Meanwhile, China is hosting a carnival that makes even Wall Street manias look tame. Cambricon’s trajectory from CNY600 to nearly CNY1,600 is the stuff of parables — a rocket ship blasting through the upper atmosphere with “overbought” stamped on the fuselage. But in speculative China, overbought isn’t a warning, it’s a badge of honor. Traders there don’t debate whether the candle burns too hot; they lean closer to feel the heat. The STAR 50 index just erupted 7% overnight, its RSI straining against technical boundaries like an orchestra playing louder than the score permits. But when the music is this intoxicating, nobody dares ask the conductor to quiet down.

Leverage, of course, is the invisible accelerant. Margin debt is the gasoline sloshing in the tank, and in China’s riskiest corners it’s poured liberally. The charts of Cambricon, STAR 50, and speculation itself all march in lockstep, reminding us that when bubbles form, they demand to be ridden, not argued with. A skilled surfer doesn’t scold the wave — he rides it until it crests, then bails with discipline. Stops aren’t just risk management here; they’re the exit doors of a burning theatre.

Back west, the AI obsession hasn’t dimmed. Allocations to the Magnificent 7 and AI baskets are again pressing toward one-year highs. It’s not quite the fever of mid-2024, but the market pulse is strong enough to suggest that asset managers remain chained to the same narrative. The six-month correlation between their gross longs and Goldman’s AI semi basket is near maximum — like two dancers locked in rhythm, each unwilling to break step. Crowded trades can run further than anyone expects, but they carry the same fragility: when the music cuts, the scramble for chairs will be ruthless.

Gold, ever the eccentric traveller, has been marching to its own beat. Speculators tried to front-run the recent fall and were left stranded as the metal climbed higher. Now, CTAs, forced by their models, are preparing to add an estimated $10 billion in notional GC futures.

It’s a mechanical bid, but the implications are real: the machines are joining hands with the discretionary crowd. Gold has held firm even as volatility collapsed, a reminder that sometimes the safe haven doesn’t need drama to shine. But imagine if volatility does pick up again — what feels like a slow grind could quickly turn into a stampede.

As for the euro, the noise out of France is a familiar tune: political sparks that flare brightly but rarely spread. Unless flames leap across borders, these dramas seldom leave a scar on the single currency. Still, the euro trades like a sailor pacing the deck, waiting for clearer skies before committing to a tack. We’ve adjusted our stance accordingly, shifting our buy-the-dip sights from 1.1500 to 1.1600, moving from patience to pursuit. It’s less about conviction and more about pragmatism — in FX, you don’t wait forever at a locked door; you chase the opportunity that opens first.

So the Weekender tape reads like a patchwork of different moods: U.S. tech pausing, Chinese tech in delirium, gold waiting for tremors, and the euro caught between political fog and technical fences. The unifying thread is speculation itself — sometimes bottled, sometimes spilling, continually reshaping the map. Traders don’t control the train schedule; they simply decide which carriage to board and when to disembark.

Author

Stephen Innes

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

More from Stephen Innes
Share:

Editor's Picks

AUD/USD keeps range near 0.6950 after Australian trade data

AUD/USD consolidates near a two-month low, trading around mid-0.6900s in the Asian session on Thursday amid a bullish US Dollar. The US PCE data tempered October Fed hike bets, though oil-driven inflation fears remain supportive of elevated US bond yields. Meanwhile, Australia's trade surplus shrank sharply in August to AUD495M, having limited impact on the Aussie Dollar and the pair.


USD/JPY sits at weekly top above 158.00 as bullish USD counters intervention risks

USD/JPY is sitting at the top end of its weekly range above 158.00 in the Asian session on Thursday. Despite the softer US PCE data, oil-driven inflation risks keep US bond yields elevated near multi-year highs. Moreover, the US-Iran standoff benefits the safe-haven US Dollar and supports the pair. Broad US Dollar strength counters hawkish BoJ expectations and Japanese intervention risks.

Gold fails ahead of $4,200 as surging US yields and Iran risks lift USD closer to YTD top

Gold struggles to capitalize on a modest intraday move up to the $4,200 neighborhood, trading nearly unchanged for the day during the first half of the European session. Despite softer-than-expected US inflation data on Wednesday, US Dollar buying remains unabated as US bond yields continue scaling new multi-year highs. This is seen as a key factor undermining demand for the non-yielding bullion.

Hyperliquid pares gains as ETF outflows cap tentative bullish recovery

Hyperliquid (HYPE) is down 2% at press time on Thursday, trimming its 5% gains from the previous day. Institutional demand is easing, with $5 million in outflows on Wednesday, weighing on near-term investors' sentiment. The technical outlook for HYPE indicates a near-term mixed tone as the price remains capped below $90.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro (EUR) an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082.