Market Overview
Australian Dollar Mildly Higher after RBA Minutes, But No Follow Through Buying Seen
Asian markets opened higher earlier today, following another day of strong rebound in the US overnight. But buying lost momentum entering into European session. Australian Dollar is currently the strongest one for today as RBA minutes indicates the central bank will stand pat in September first. New Zealand Dollar...
Risk Appetite Coming Back on Huawei Reprieve and Stimulus Talks
Global markets stage a strong rebound today with help from talk of global stimulus. China has already indicated that it will reform rate system to lower lending cost. There were also talks that Germany is considering stimulus measures. Markets response well to US decision to delay Huawei sanctions for...
Risk Appetite Lifted by PBoC Reform, But Forex Markets Shrug
Risk appetite is striking a come back as another week starts, lifted by China's measure to lower lending rates. Though, the response in the currency markets is rather muted. For the moment, major pairs and crosses are stuck inside Friday's range. Dollar and Euro and the firmer ones while...
An Important Week for EUR/USD as Fed and ECB Easing Expectations Built
Euro ended last week as the weakest one as comments from a top ECB official suggested a forceful easing package to be announced in September. Additionally recession fear in Germany sent 10-year bund yield to new record low. New Zealand Dollar followed as the second weakest on dovish RBNZ...
Euro Selloff Continues as German 10-Year Yield Hits Another Record Low Below -0.7%
Selloff in Euro picks up momentum again today as Germany yields dive on ECB easing expectations. Swiss Franc is also pressured as SNB could sometime be forced to intervene. Yen is the third weakest, following rebound in stocks rather than falling yields. On the other hand, Sterling recovers broadly,...
Dollar Mildly Higher as Sentiments Stablized, Yields Remain Pressured
Asian markets turned mixed after US stocks stabilized overnight. Treasury yields remain pressured though, as 10-year JGB yield hit the lowest level since 2016. In the currency markets, Dollar strengthens mildly today after a Fed dove dismissed an emergency rate cut. Though, Australian Dollar is the strongest one. On...
Euro Dives on German Yield, Dollar and Pound Supported by Retail Sales
The global financial markets turned a bit mixed today even though risk aversion remains the underlying theme. European stocks are generally lower while US stocks recovers, turning into consolidations. Comments from China suggests that retaliation is still underway despite delay of part of the new US tariffs. Germany 10-year...
Risk Aversion Continues as Markets Await UK and US Retail Sales
Risk aversion stays in Asia after the -3% crash in Dow overnight. More importantly, treasury yields took another dive on recession fears. US 30-year yield even drops through 2% handle in Asia and hit as low as 1.964. In the currency markets, though, Australian Dollar rises generally after better...
Risk Aversion Back on Recession Fear, Yen Regains Control
Risk aversion quickly comes back to the market as German data suggests that the economy is on the edge of recession. Major European indices are trading in deep red and German 10-year yield also hit new record low at -0.649. Sentiments are further weighed down by US Commerce Secretary...
Sentiments Lifted by Delay of Some US Tariffs on China, But Markets Stay Cautious
Market sentiments staged a strong rebound overnight after US Trade Representative announced to delay tariffs on some Chinese imports. However, there seems to be no committed follow through buying/selling yet. DOW hit as high as 26426.97 but closed at 26279.91, up just 1.44%. It's also technically limited below 55...
Dollar Shrugs Pick-up in CPI Inflation, Swiss Franc Rises on Risk Aversion
Swiss Franc rises broadly today as risk aversion stays in the markets, even though Yen is firm but relatively unmoved. Sterling also recovers with help from stronger than expected wage growth. On the other hand, New Zealand and Canadian Dollars are the weakest while Australian is not too far...
Forex Steady Despite Risk Aversion, UK Job Data Watched
The forex markets are rather calm so far despite deep risk aversion elsewhere. Most notably, US 30-year yield plunged sharply by -0.118 to 2.130, closing in to 2.102 historical low. Major Asia indices are all in red, following selloff in US overnight. Nevertheless, all major forex pairs and crosses...
Markets Remain in Risk Aversion as Yen and Swiss Franc Maintain Momentum
Risk aversion is the main theme even though trading is generally subdued today. Yen is currently the strongest one, followed by Sterling and then Swiss Franc. The Pound is trying to recover upside is so far capped by no-deal Brexit risks. Commodity currencies are generally lower, led by Australian...
Yen and Franc Firm in Quiet Trading, More Upside Ahead
The financial markets are relatively quiet today with Japan and Singapore on holiday. Yen and Swiss franc generally firmer but there is no clear follow through buying to extend last week's rally yet. On the other hand, Dollar is soft, but focus should be more on weakness in Sterling...
Global Risks Materializing, Stocks and Yields Tumbled, Yen and Franc Surged
US-China trade/currency war, no-deal Brexit, global slowdown and central bank easing were the main themes last week. The perceived risks to global economy were moving closer to materializing. Free fall in Chinese Yuan at the start of the week triggered US in designating China as currency manipulator. New 10%...
Sterling Tumbles as GDP Contraction Raises Recession Fears
Sterling weakens broadly today as surprised contraction in Q2 UK GDP raised concerns of recession. In the background, risk of no-deal Brexit continues to weigh on sentiments. Canadian Dollar is suffering some renewed selling in early US session after worse than expected job data. Dollar is not much better...
Sterling Soft as Markets Await UK GDP and Productions
Sterling stays soft in Asian session and remain the second worst performing one for the week. Risk of no-deal Brexit continues to weigh on the Pound. UK GDP and production data could add more selling pressure. For the week, New Zealand Dollar remains the weakest one after the surprised...
Sterling Under Pressure as Johnson Might Delay General Election after Brexit Date
Sterling is back under pressure again in early US session and is trading as the weakest for today. Prime Minister Boris Johnson urged MPs to keep the promise to people an deliver Brexit on October 31. At the same time Financial Times reported that Johnson, if loses a confidence...
Markets in Consolidations as China Trade Data Support Sentiments
The forex markets are rather quiet today as major pairs and crosses are stuck in consolidations. Better than expected trade data from China gives sentiments a mild boost. But momentum of recovery is very weak so far. Treasury yields are also trying to recover after yesterday's steep decline. For...
Yen Strengthens Again on Falling Treasury Yields, Swiss Follows
Yen strengthens broadly today, mainly follows decline in major benchmark yields. German 10-year yield hit another record low at -0.597. US 10-year yield also breaks 1.7 handle. Yields are pressured after deeper the surprised -50bps cut by RBNZ and expectation of more global central bank easing. Asian stocks ended...