Market Overview
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...
New Zealand and Australian Dollars in Steep Decline after Surprised RBNZ 50bps Rate Cut
New Zealand Dollar is clearly the worst performing one today as selloff intensifies after RBNZ's surprised -50bps rate cut. Australian Dollar is also dragged down deeply while Canadian Dollar follows as third weakest so far. Asian markets ignore rebound in US stocks overnight and weaken generally. Yen and Swiss...
Dollar Recovering While Yen Softens as Currency War Fear Recedes Mildly
Market sentiments stabilized with recoveries seen in European stock markets, while US futures also point to a solid rebound. The China's Yuan also pares back some of yesterday's steep losses on rumors that a PBoC official reassured foreign companies that the currency won't continue to weaken significantly. Though, the...
Sentiments Stabilize While US-China Trade War Turns into Currency War
Asian markets tumbled sharply earlier today in response to US designation of China as currency manipulator. USD/CNH also jumped to new high at 7.1399. But China's PBoC appeared to be trying to "smooth" Yuan's decline despite hard line rhetorics elsewhere. Asian stocks quickly pared back much of today's losses....
Risk Aversion Dominates Globally as Yuan Fall Drags Sentiments
Global markets are dragged down by the steep decline in the Chinese Yuan today. Major European indices are all in deep red today, following the selloffs in Asia. DOW future is currently down over -1.4% or -370 pts. Treasury yields also suffer with German 10-year yield breaking -0.5 handle...
Free Fall in Chinese Yuan Spills Over to Asian Markets, Yen and Franc Strong
Yen and Swiss Franc extends last week's strong rally as risk aversion dominates Asian markets. A key trigger is the free fall in the Chinese Yuan, which dives through psychologically important 7 level against Dollar, in response to trade war escalations. Major Asian indices are all in deep red...
Abrupt Trade War Escalation Overshadowed Fed’s Cut, Yen and Franc Jumped
The abrupt escalation of US-China trade war overshadowed Fed's rate cut last week. As the trade talks in Shanghai yielded no constructive result, Trump announced to impose 10% on USD 300B in Chinese imports, effective September 1. The list include practically all untaxed Chinese goods, which should have much...
Yen and Franc Strong on Trade War, Dollar Mixed Despite Solid NFP
Swiss Franc and Yen continue to trade as the strongest ones for today on risk aversion, as US-China trade war escalates. Global equity markets are under heavy selling pressure, with DOW futures down around -100 pts. German 10-year yield hits another record low at -0.499 and stays soft. Dollar...
Yen Surges on Risk Aversion as US-China Trade War Escalates
Risk aversion dominates the markets as US-China trade war escalates again with Trump's new tariffs. In particular, 10-year yield dived through 2% handle with ease and determination, to close at 1.894, lowest since November 2016. In the currency markets, Yen and Swiss Franc overtake Dollar's position as the strongest...
Sterling Softens after BoE, Yen Surges Through Key Resistance
Sterling weakens broadly today and remains the worst performing one for the week. BoE rate decision provided little inspiration while growth forecasts are notably lowered in the Inflation Report. Euro is the second weakest one on expectation of ECB easing in September. On the other hand, Yen is currently...
Dollar Powered Up by Fed Powell, Broke Key Resistance Against Euro
Dollar was shot up overnight as Fed's rate cut was, overall, less dovish as expected. At least, Chair Jerome Powell clearly indicated that it's not the start of a lengthy easing cycle. The greenback remains firm in Asian session, together with Australia and New Zealand Dollar. The latter two...
Dollar Shrugs Solid ADP Report as Fed Awaited
Dollar continues to trade with a soft tone in early US session. Job data from US is slightly better than expected. US-China trade negotiations concluded in Shanghai without any concrete progress. But traders' minds remain on FOMC rate cut later today. For now, New Zealand Dollar is the weakest...
Dollar Weakens Mildly as Focus Turns to FOMC Rate Cut
Dollar trading generally lower today as markets await Fed's highly anticipated rate cut. Though, the greenback is just the second weakest. New Zealand Dollar is the worst performing one for today so far on deteriorating business confidence. Swiss Franc is the third weakest as markets turned mixed. Australian Dollar...
Dollar Mixed after Core PCE Inflation Miss, Aussie Tumbles on Risk Aversion
Sterling remains the overwhelmingly weakest one on no-deal Brexit concerns. New Prime Minister Boris Johnson is pushing EU to re-open Brexit negotiation. But there is no sign from EU on a position shift yet. Australian and New Zealand Dollars are the next weakest as markets turn into risk averse...
Sterling Selloff Continues as No-Deal Brexit Risks Intensify
Selloff in Sterling remains the focus in Asian session today, as markets are adding their best to no-deal Brexit. The currency markets are relatively quiet elsewhere. Canadian Dollar is currently the second weakest, then Euro. Yen and Swiss Franc are the strongest, with help by falling treasury yields. Dollar...
Sterling in Free Fall as Johnson’s Government Steps Up Hard Line Brexit Rhetorics
Sterling drops broadly today as the new government is starting step up their hard line rhetorics on Brexit. Australian and New Zealand Dollar are also weak as markets await US-China trade negotiations that start tomorrow. Expectations for the talks in Shanghai are so far rather low. Swiss Franc and...
Yen Higher as Markets Turn Cautious in a Week of Fed, BoJ, BoE and Important Data
Yen opens the week broadly higher, following mild risk aversion in Asian markets. Traders are turning cautious ahead of FOMC rate decision, a string of worldwide economic data, as well as resumption of US-China trade negotiations. Swiss Franc is the second strongest so far while Dollar is the third....
Fed Rate Cut Still Expected after Solid Data, But Dollar Could Rally Further After That
Dollar ended as the strongest one last week as boosted by solid economic data from the US. While markets are still pricing in full chance of a Fed rate cut this week, strong data argue against the chance of further easing after that. Euro and Canadian Dollar were the...
Dollar Jumps on Strong Q2 GDP, Yet to Break Key Resistance
Dollar rises notably in early US session after stronger than expected US GDP data. The solid data rises further question on whether Fed would really cut interest rate next week. Even so, a -50bps cut is basically out of question. The greenback is followed by Yen and the Euro....
Dollar Cautiously Firm As GDP Awaited, Euro Recovery Lost Steam
Dollar turns mixed in Asian session today but remains the strongest one for the week. Recent economic data from US, including yesterday's durable goods orders, have been solid, and raised some doubts on the need for Fed easing. Sterling is currently the second strongest for the week, followed by...