Market Overview
Dollar Mildly Lower in Quiet Markets, G20 Eyed
Dollar trades broadly lower in relatively quiet markets today. Trading is rather subdued firstly due to quarter end effect. More importantly, traders are awaiting the highly anticipated Trump-Xi meeting. It's cautiously optimistic that some form of agreement would be made to avert further tariff escalations. But this is far...
Markets Turn Cautious With Eyes on G20, US & Eurozone Inflation
Asian markets trade broadly lower today as traders lighten up positions ahead of the highly anticipated Trump-Xi meeting tomorrow. Yen and Swiss Franc are currently the strongest ones as sentiments turn cautious. Nevertheless, both are contained well above recent lows against other majors currencies for now. Directions in other...
Markets Going Nowhere ahead of G20, US & China Exchange Words ahead of Trump-Xi Meeting
The financial markets are generally in consolidative mode, awaiting the start of the two-day G20 summit in Osaka, Japan tomorrow. For traders, main focus will be on face-to-face meeting of Trump and Chinese President Xi Jinping. Hopes are high for some form of agreement to stop further escalations in...
Yen & Swiss Franc Lower Again as Stocks Rise on Trade Optimism
Asian markets trade broadly higher on increasing "optimism" regarding US-China trade war. Some form of agreement is anticipated out of the Trump-Xi summit on Saturday to avoid further tariff escalation. Yen and Swiss France are trading as the weakest one for more, followed by Euro. Australian and New Zealand...
Sentiments Lifted by Mnuchin’s Trade Optimism, Capped by Trump’s Tariff Threats
Risk appetite firms up mildly today as lifted by US Treasury Secretary Steven Mnuchin's upbeat comments regarding trade negotiation with China. There are also reports that US would delay new tariffs without deadline, to bring China back to negotiation table. However, the positive lift is capped after Trump reiterates...
Dollar Rebounds as Fed Dismissed Aggressive Cut, NZD Rebounds Despite Dovish RBNZ
New Zealand rises broadly even though RBNZ hints on an August rate cut. The easing bias is actually well priced in and traders responds to the positive reference to the economy instead. Dollar also trying to extend yesterday's rebound as even the most dovish Fed official dismissed an aggressive...
Yen Surges on Renewed Weakness in Treasury Yields
Yen rises broadly today as major treasury yields are resuming recent decline. German 10-year yield hits new record low at -0.33 while US 10-year yield is back below 2.0 handle. Though, New Zealand Dollar is even stronger as record export in May solidifies the case for RBNZ to stand...
Yen & Gold Jumps on Fresh Iran Sanctions, Dollar Awaits Fed Powell
Yen and Gold surge today as global sentiments are weighed down by new US sanctions on Iran. In particular, Gold hits as high as 1439 and is currently up more than 1%. Nevertheless, New Zealand Dollar outshines Yen and is currently the strongest one for today. Kiwi is boosted...
Dollar Ignores Trump’s Fed Attack, Euro Mixed after German IFO
Dollar stays generally soft in quiet markets but selling seems to have slowed in early US session. Trump criticizes Fed as sticking like a "stubborn child" on interest rates. Such comments are ignored by markets, sensibly, in general. The key to Fed's policy is whether Trump is able to...
Dollar Stays Soft as Markets Await G20, Aussie Mildly Firmer
The financial markets are relatively steady in a light day today. The imminent risk of war between US and Iran is eased, as Trump opts for more economic sanctions. Meanwhile, it appears that US and China are both preparing for the Trump-Xi summit at G20 in Japan later in...
Fed & ECB Turned Dovish, But It’s Too Early to Confirm July Policy Actions
Major global central bankers sang a chorus of dovishness last week. Most importantly, both ECB and Fed signaled the possibility of rate cuts ahead. Comparatively, RBA's indication of more rate cut was not much a surprise. In the background, it appeared US and China were back on track to...
Euro Jumps as Eurozone PMIs Show Tentative Signs of Turnaround
Euro rises broadly today as PMI data showed no further deterioration in sentiments in Eurozone. Underlying growth momentum remained weak, but there were more tentative signs of improvement in Germany and France. Swiss Franc remains firm on Middle East Tension. It's reported that Trump has given Iran a warning...
Dollar in Weak Recovery as Focus Turns to Eurozone PMIs
Dollar recovers mildly today but there is apparently no follow through buying for a turn around. The greenback is still feeling heavy on dovish Fed which opened the door for rate cut at this week's FOMC meeting. Weakness in Dollar is also apparent in the strength of Gold, which...
Middle East Tensions Overshadow Dovish Central Banks, Swiss Franc and Canadian Steal the Show
Dollar remains broadly weak, suffering heavy selling pressure after Fed turned dovish yesterday and opened the door for rate cut. Though, Swiss Franc and Canadian Dollar steal the show today on escalating middle tensions. WTI crude oil rises over 4% on news that a US drone was shot down...
Dovish Fed Sent Dollar and Yields Lower, More Downside in Near Term
Dollar drops broadly overnight after Fed indicates that it's ready to "act as appropriate" on interest rates, depending incoming data. It's clearly a sign that Fed is opening door for rate cut, even though it may not come as soon as in July. Selling picks up momentum today together...
Canadian Dollar Jumps on CPI, Dollar Mixed Awaiting FOMC Guidance
Canadian Dollar jumps broadly in early US session, after stronger than expected inflation data remove another reason for BoC rate cut. Though, for now, Loonie is overshadowed by Sterling and Swiss Franc, which are the strongest ones. Meanwhile, risk appetite recedes mildly ahead of FOMC rate decision. Dollar is...
Sentiments Boosted by Trump and Draghi, But Traders Hold Their Bets ahead of FOMC
Market sentiments were given two strong boosts yesterday, first by ECB's indication of monetary stimulus ahead, then by renewed optimism of US-China trade negotiations. Positive sentiments carried forward to Asian session, with strong rally seen in major indices. Though, reactions in currency markets are relatively "refrained" as traders are...
Euro Tumbles, German Yield Hits Record Low as ECB Prepares for More Easing
Surprisingly dovish comments from ECB President Mario Draghi sent Euro sharply lower, and German 10-year yield to new record low today. There are some speculations that ECB could eventually cut interest rates, with a tiered system", alongside released of new economic projections in July. The comments also send German...
Australian Dollar Tumbles on Dovish RBA Minutes, Sterling Weakens Too
Australian Dollar drops broadly today after RBA minutes confirm that more rate cuts are underway. Additional, worse than expected house price data gives the Aussie more selling pressure. Sterling is not far away as second weakest, ahead of the next round of UK Conservative leadership voting today. For now,...
Euro Rises on Strong Wage Growth, Dollar Softens on Weak Data
Euro strengthens broadly in mixed forex markets today. Record wage growth in Q1 is a factor under-pinning the common currency. Poor US economic data also helps. But at this point, strength mainly centers in crosses, against Aussie most notably. Meanwhile, New Zealand Dollar is the second strongest one for...