Market Overview
Risk Markets Surged on Receding Political and Trade Uncertainties
Risk aversion eased notably further last week as some of the imminent risks receded. New Italian government was sworn in as 5-Star Movement and bitter rival Democratic Party agreement to form a coalition. UK lawmakers passed a bill to force Prime Minister Boris Johnson to delay Brexit if no...
Dollar Lower on NFP Miss, Supported by Wage Growth
Dollar drops mildly in early US session after weaker than expected employment data. Yet, downside is limited as support by stronger than expected wage growth. At the time of writing, commodity currencies are the strongest one for today with help from China's RRR cut. Canadian Dollar is additionally supported...
Markets Remains Risk On as Focus Turns to Non-Farm Payrolls
The financial markets remain in risk on mode today. Yen, Swiss Franc and Dollar continue to feel tremendous selling pressure. Meanwhile, commodity currencies are generally the strongest. Euro and Sterling are mixed for now as it's still unsure where Brexit uncertainty is heading to. The common currency's rally attempt...
Risk Appetite Strong on Trade, Brexit and Italy
Risk appetite is general strong today on rather positive news. Firstly, US and China both confirmed that trade negotiations are continuing and both teams are in preparing for a high-level face to face meeting in October. There is no specific date for the meeting yet. But with new tariffs...
Sentiments Lifted as US-China Trade Talk Will Resume Next Month, Yen Weakens
Asian markets are generally lifted by confirmation that US-China trade talk is going to resume next month. Commodity currencies gain most as led by Australian Dollar. Swiss Franc and Yen are pressured in risk seeking environment naturally. But Sterling also turns softer on overnight condition. It's getting much more...
Yen Lower on Return of Risk Appetite, Sterling Support by Hope of No No-Deal Brexit
Yen drops broadly today, as stock markets rally on supposed easing tension in Hong Kong. After more than two months of continuing protests, Hong Kong leader Carrie Lam finally announced withdrawal of the controversial extradition bill today. HSI closed up 3.9% on rumors leading to the announcement while HK...
Australian Dollar Rebounds on GDP and Services, Sterling also Recovers
Australian Dollar rebounds notably today as GDP data met market expectations while services data showed improvement. Though, upside is capped so far as RBA is still on track to another rate cut later in the year. Sterling is the second strongest after lawmakers cleared a hurdle to block no-deal...
Sterling Stays Pressured on Brexit, Canadian Dollar Pressured Too
Sterling and UK treasury are the major focuses today as all eyes are on Brexit again. UK Prime Minister Boris Johnson has indicated that he will call an election on October if the MP's bill to seize control of the Commons timetable to force Brexit delay is passed. The...
Sterling Selloff Continues on UK Politics, GBP/USD Breaks 1.2
Sterling's selloff continues today as UK is entering into two crucial days regarding Brexit, and general election cold be called. Euro also follows as the second weakest on ECB easing expectations. On the other hand, Dollar is the strongest one as markets are awaiting more news on US-China trade...
Sterling Tumbles on Poor Manufacturing Data and Political Uncertainties
Sterling drops sharply today as after poor manufacturing data. Also, political and Brexit uncertainties remain in UK. There are "very strong" rumors that a general election could be called this week that could take place before Brexit date of October 31. Australian Dollar follows as the second weakest for...
Dollar and Yen Mildly Higher as Markets Shrug New US-China Tariffs
Dollar and Yen firm up mildly in Asian session as markets started the month mixed. New round of US-China tariffs took effect over the weekend but market reactions are muted so far. Australian Dollar softens mildly, followed by Swiss Franc and then Sterling. But overall, major forex pairs and...
EUR/USD Resumed Down Trend as Dollar Surged after China Backed Down on Tariff Escalations
Dollar ended as the strongest major currency last week, largely thanks to late buying before weekly close. It remains to be proved whether that was due to month end flows. But somewhat receding risk of US-China decoupling and expectations of aggressive Fed cut could have provided some help too....
Canadian Dollar Higher on Solid GDP, Dollar Shrugs PCE Inflation
Markets turned a bit mixed as month end approaches. European stocks are generally higher while DOW up over 100pts at open. Meanwhile, treasury yields are steady tough, with German 10-year yield slightly lower, but US 10-year yield is recovering. In the currency markets, Canadian Dollar is notably stronger after...
Markets Cautious as Hong Kong Tensions Overshadow Trade Optimism
Asian markets opened higher earlier today following the strong close in US markets. China appeared to be backing down on further tariff retaliation, and there's hope for continuation in US-China trade negotiation. But sentiments turned sour quickly on escalating tensions in Hong Kong.
Two prominent activists in HK are arrested...
Stocks Rebound as China Backs Down on Tariff Escalation, Dollar Mixed
Stock markets stage a strong rebound today after China appears to be backing down from its hard line stance in trade war with US. Yen and Swiss Franc turn soft while commodity currency regain reverse earlier losses. Euro is also weak despite improvement in confidence indicators. Sterling remains mixed...
New Zealand Dollar Leads Commodity Currencies Lower, Yen and Franc Firm
Commodity currencies remain generally pressured on risk aversion today. In particular, New Zealand Dollar is weighed down by poor business confidence data. Australian is not much better after contraction in private capital spending. On the other hand, Yen and Swiss Franc are strongest on falling stocks and treasury yields....
Sterling Tumbles as Johnson Takes UK into Constitutional Crisis
Sterling is back in focus today as UK is heading into constitutional with Prime Minister Boris Johnson's move to suspend the government. Risk aversion return of risk aversion also keep commodity currencies generally soft. On the other hand,Yen is generally stronger following further decline in major global treasury yields....
Dollar, Euro and Pound Stronger in Consolidative Markets
Dollar, Euro and Sterling are trading as the stronger ones today while commodity currencies are generally weaker. Dollar somewhat shrugs offer weaker treasury yields as markets await the next move in US-China trade war. Euro is underpinned by possible political resolution in Italy. Meanwhile, Sterling is lifted as UK...
Sterling Jumps as UK Oppositions Seek Brexit Delay, Swiss Franc Weakens
Sterling rises broadly today as UK opposition lawmakers are moving to seek Brexit delay. Swiss Franc weakens broadly at the same time, partly due to the same reason. The forex markets are otherwise mixed, staying in tight range as consolidations continue. Yen is having a slight upper hand with...
Risk Rebound to be Short-Lived, Yen Crosses Stay Bearish
Yen strengthens broadly today again as the pull back lost momentum. After all the words and rhetorics, US-China trade war is still in progress for escalation. Yesterday's early selloff in risk markets might be overdone. But current recovery doesn't indicate any change in the down trend in stocks, nor...