Market Overview
Markets Sold Off on Coronavirus Worries, Dollar Momentum to be Capped by Yen Strength
China's new coronavirus overshadowed central bank activities last week and prompted global risk aversion. At the timing of writing, death toll jumped to 41 while more than 1300 people have been infected globally. The virus has already spread from Wuhan to other major cities in China, and globally to...
Euro and Sterling Dip after PMIs, Dollar and Canadian Firmer
European majors are generally weaker today. Stronger than expected UK PMIs add to the case for BoE to stand pat next week. But the Pound shrugs off the data. Euro also receive no particular support from PMIs, which signals that the economy failed to pick up momentum for recovery....
EUR/GBP Weak ahead of Eurozone and UK PMIs
Euro continues to trade with a soft tone in Asian session, and there is no sign of recovery after yesterday's post ECB selloff. Australian Dollar is also weak after poor PMI data, even though markets are pushing RBA cut bets from February to April. On the other hand, market...
Euro Weakens after Uninspiring ECB, Risk Aversion Dominates With Coronavirus Fears
Euro is trading as one of the weakest major currencies, together with Canadian Dollar, for today. There is little inspiration from ECB rate decision and press conference. Canadian Dollar is weak on free fall in oil price, with WTI pressing 55 handle now. Australian Dollar continues to be the...
Aussie Recovers on Receding RBA Cut Bet, But Yen Stronger on Coronavirus Worries
Australian Dollar rises broadly today as markets pare back bet on RBA rate cut in February, following better than expected job data. Though, upside is limited by risk aversion while Aussie is just following Yen as the second strongest. Asian stocks trade generally, deeply lower, after China halted travel...
Sterling Surges on Record Improvement in Business Optimism, Traders Pare BoE Cut Bets
Sterling jumps broadly today as traders pare back bet on an imminent rate cut by BoE next week. Record improvement in quarterly business optimism is seen as a trigger for the sharp change in expectations. Canadian Dollar attempts to rally after CPI met expectations. But there is no range...
Canadian Dollar Mixed Awaiting BoC and CPI, Dollar Firmer
Yen and Swiss Franc turn mildly softer today as risk aversions receded. Asian stocks recover generally even though upside is limited. Traders remain cautious on coronavirus outbreak in China, which has already spread to the US. Sterling, Euro and Dollar are currently the stronger ones. Canadian Dollar is mixed,...
Sterling and Euro Rebound on Data, Risk Aversion Remains
Sterling and Euro rebound strongly today as lifted by solid economic data. But overall market sentiments remain weak concern of outbreak of coronavirus in China, ahead of lunar new year mass travel. Commodity currencies continue to trade as the weakest ones, following decline in stock markets. Yen is also...
Risk Aversion Dominates on Concerns of Coronavirus Outbreak in China
Risk aversion dominates the Asian markets today on concerns of coronavirus outbreak in China. Hong Kong HSI leads the way down, additionally pressured by Moody's downgrade. In the currency markets, commodity currencies are broadly lower, with Australian Dollar suffering biggest selloff. Yen and Swiss Franc are the strongest for...
Dollar Rises Again after Brief Retreat, EUR/USD Pressing Key Support
Dollar, Canadian and Yen are so far the strongest ones in a relatively quiet day. The greenback is supported by recent data as well as easing trade tension. But as the US economic calendar is ultra light this week, Dollar's fate is likely on others' hands. Canadian Dollar is...
Dollar Retreats Mildly in Quiet Markets, Three Central Banks to Meet this Week
The financial markets are generally steady in Asian session today. Dollar turns slightly softer against Euro and commodity currencies, but losses are so far limited. Though, Sterling is clearly weak as pressured by speculations of BoE rate cut. The Pound will face some more challenges from economic data this...
Dollar Could Be Staging Bullish Reversal as Trade Tensions Eased
The completion of US-China trade deal phase one was well received by investors. There was an additional bonus of scrapping the label of China as currency manipulator by the US Treasury. The is no time frame for the phase two negotiations yet. But the US is already working with...
Dollar Rises Broadly, But Upside Capped by Mixed Data
Dollar strengthens broadly today but upside is somewhat limited by mixed US economic data. Canadian Dollar is following as the second strongest as oil prices recover mildly. On the other hand, both Swiss Franc and Euro are paring some of this week's gains. Weakness also spread to Sterling, which...
Dollar Mildly Firmer in Mixed Markets, Aussie Soft
Dollar is trading with a mildly firm tone in Asian session today, riding on solid data from US released overnight. But there is no clear committed buying seen yet. Meanwhile, Australian and Canadian Dollars both turned weaker but New Zealand Dollar is trading higher broadly. Over the week, Yen...
Yen and Dollar Lower as US Investors Cheer Trade Deal, Markets Mixed Elsewhere
Yen and Dollar trade broadly lower today while markets are having different reactions to US-China trade deal phase one, which was signed finally yesterday. Asian stocks were mixed while European stocks are soft. But US futures point to higher open, probably extending recent record runs, while 10-year yield is...
Markets Shrug US-China Trade Deal, Dollar Await Retail Sales
The US-China trade deal phase one was finally signed but market reactions were muted. US stock indices hit record highs but gains were limited. On the other hand, there were notable fund flows into bonds and Swiss Franc over political uncertainties in Russia. In the currency markets, over the...
Swiss Franc Surges after Russian Prime Minister Resigns, Taking Euro Higher
Swiss Franc jumps broadly on political news from Russia today and takes the Euro higher. Yen follow as third strongest on risk aversion as European stocks also dive on the news. Sterling is among the weakest, following weaker than expected CPI, as well as dovish comments from a BoE...
Sentiments Softer as Tariffs Will Stay after US China Trade Deal Phase One
The forex markets are rather mixed today as traders are holding their bets ahead of signing of US-China trade deal phase one. Sentiments turned softer after US indicated that tariffs will stay in place before conclusion of phase two. But the impact is so far limited. Sterling pares back...
Dollar Firm as after CPI, EUR/CHF Downside Breakout
Dollar rises broadly in rather quiet markets today. Consumer inflation data from the US is supporting the greenback's firmness, but provides not further lift. Indeed, Swiss Franc is even stronger, as the best performing one today so far. China Yuan is also notably stronger than Dollar, after US scrapped...
Sentiments Lifted as US Scrapped China’s Currency Manipulator Label
Yen weakens broadly today as markets are generally in risk on mode. US stocks rose broadly overnight with S&P 500 and NASDAQ closing at record highs. Sentiments were lifted as US scrapped labeling of China as currency manipulator, just ahead of trade deal signing on Wednesday. Asian stocks are...