Market Overview
Dollar Firm Despite Durable Order Miss, Aussie Awaits RBA Minutes
Dollar edged higher in subdued holiday trading, maintaining its recent strength but staying within a narrow range below last week’s highs against major currencies. Markets largely brushed aside the disappointing US durable goods orders data, as the series is known for its volatility. Moreover, traders are prioritizing labor market...
Dollar Holds Ground Amid Quiet Holiday Forex Markets
As markets wind down for the year-end holiday period, forex trading activity turns subdued, with limited momentum across major pairs. Dollar, while maintaining its position as the strongest currency of the month, is facing challenges in decisively breaking last month’s highs against European majors. However, the greenback still made...
Dollar to Pause for Consolidation After Failing to Break Euro Resistance Post-Fed
The financial markets were jolted by Fed’s hawkish rate cut last week, sending ripples across stocks, bonds, currencies, precious metals, and even cryptocurrencies. Fed’s indication of prolonged restrictive monetary policy fueled risk aversion, pushing Dollar to end the week as the strongest performer in the currency markets, supported by...
Dollar Pauses After PCE Miss, Markets Digest Fed Comments
Dollar's strong rally paused in early US trading after PCE inflation data came in below expectations, easing concerns that Fed might maintain higher rates for an extended period. Markets are also digesting remarks from Fed officials following the hawkish rate cut earlier in the week.
Most notably, Cleveland Fed President...
Yen Recovers Slightly on Japan’s Inflation and Verbal Intervention, But Dollar Remains Unstoppable
Yen, which has been one of the weakest currencies this week, showed a modest recovery during today’s Asian session. The rebound came on the back of stronger-than-expected inflation data and renewed verbal intervention from Japan’s Finance Ministry. November’s inflation figures revealed a sharp reacceleration, driven by significant increases in...
Sterling and Yen Underperform After BoE and BoJ
Both Sterling and Japanese yen are among the weakest-performing currencies today, following their respective central banks meetings. BoE left rates unchanged at 4.75%, but the surprise came from a dovish shift in the MPC, with three members voting for a cut. While BoE reiterated that a "gradual approach" to...
Market Chaos Unfolds Despite Widely Expected Fed Hawkish Cut
Fed’s hawkish rate cut overnight sparked an outsized market reaction, with DOW plunging over -1100 points and NASDAQ losing -3.5%. Fed’s messages didn't deviate from expectations leading to the meeting, indicating a slower easing path in 2025 with likely just two more rate cuts and a terminal rate near...
Markets Hold Steady with Fed’s Rate Cut and 2025 Outlook in Focus
The forex and stock markets are holding steady today, with limited volatility as traders anticipate FOMC rate decision and updated economic projections. A 25bps rate cut, reducing the target range to 4.25–4.50%, is virtually certain. However, the market’s focus lies on the tone and guidance Fed delivers. Critical questions...
Dollar Awaits Fed Clarity on Easing, Sterling Shrugs Strong Inflation Data
Dollar has strengthened against commodity currencies this week but remains range-bound against Euro and Pound, as markets await Fed’s rate decision to gauge the next move. While a 25bps rate cut is fully expected in with no chance of deviation, the focus is on how hawkish Fed's messaging will...
Canadian Dollar Weakens on CPI; Dollar Firm After Retail Sales
Canadian Dollar trades broadly lower today while commodity currencies are generally soft. Canada's CPI report reinforced the outlook of stable inflation hovering around target. BOC has likely completed its aggressive rate-cutting phase and pauses in policy easing are anticipated at some meetings next year. Nonetheless, the direction remains clear:...
Sterling Holds Firm on Strong Wages Growth, GBP/CHF Upside Breakout
Sterling remains resilient, as supported by UK employment data indicating that wages remain robust. This development aligns with improved conditions in the UK’s services sector, as seen in yesterday’s PMI release, and suggests that underlying price pressures have not diminished despite growing pessimism tied to the Autumn Budget’s uncertainty....
Yen Under Pressure on BoJ Expectations; Bitcoin Soars on Trump’s Bold Crypto Vision
Yen weakened across the board today in an otherwise consolidative market , as traders increasingly anticipate that BoJ will hold steady on monetary policy at its upcoming this week. BoJ policymakers appear to see no urgency in extending the tightening cycle this month, preferring instead to wait for January’s...
Markets Start With Mild Risk-Off Mood, Central Bank Bonanza Continues
The forex market began the week on a subdued note, with mild risk-off sentiment setting the tone. China's latest economic data painted a bleak picture, with retail sales significantly underperforming expectations and fixed asset investment experiencing a deeper decline. While industrial production growth met forecasts, it failed to offset...
Inflation Pressures and Yield Surge Anchor Dollar as Top Performer
Dollar ended as the strongest performer last week, boosted by a surge in U.S. Treasury yields following persistent inflation data. Despite expectations of another 25bps rate cut at the upcoming FOMC meeting, stubborn price pressures are likely to slow the pace of policy easing next year. Adding to the...
Euro Rebounds on ECB Gradualism, Sterling Struggles
The Euro rebounded broadly today, buoyed by reassurances from a number of ECB officials that the central bank remains committed to a gradual approach to policy easing. Yesterday's 25bps rate cut appears to have had solid consensus backing, with no indications that a more aggressive 50bps cut was even...
Sterling Drops on Surprise UK GDP Contraction, Dollar Strengthens
Sterling slumped broadly today after UK GDP unexpectedly contracted in October, missing forecasts of modest growth. This contraction underscores the challenges facing the UK economy, which has been grappling with persistent inflation and uncertainty following the Autumn Budget. The government’s recent pledge to transform the UK into the fastest-growing...
European Majors Struggle After SNB, ECB Cuts
European majors are broadly under pressure today, with Swiss Franc leading losses. SNB’s unexpected 50bps rate cut caught markets off guard, and its significantly downgraded inflation projections suggest more easing is on the table for 2025. Meanwhile, Euro managed to hold steady after ECB’s widely anticipated 25bps cut. ECB...
SNB and ECB to Cut, Aussie Rebounds on Job Data
Australian Dollar staged an impressive rebound today, driven by robust employment data that surprised markets and cast doubt on the likelihood of a February rate cut by RBA. The stronger-than-expected labor market performance challenges the dovish sentiment established earlier in the week when RBA softened its inflation vigilance stance.
In...
Dollar Steady Post-CPI as Yen Slips; Aussie Faces Key Jobs Test
Dollar showed minimal reaction, other than some initial jitters, to November’s US CPI data, holding steady within its range as the report largely aligned with expectations. Headline inflation edged up, while core inflation remained flat, refusing to trend lower. With no surprise, the data cleared the way for a...
Aussie Slumps on Yuan Depreciation Speculation; US CPI and BoC Loom
Australian Dollar continued its decline today as speculation mounted that China might allow Yuan to weaken in 2025 to counteract the economic impact of increased US trade tariffs under the incoming Trump administration. While no official announcement has been made, Beijing appears to ready to signal greater reliance on...