Market Overview
US Mid-Term Results Cheered by Stocks, But Dollar and Yields Pressured
Dollar's selloff continues as markets enter into US session. It's clear that Democrats have regained control of the House while Republicans retained control of Senate. The reactions in the financial markets are not too straightforward. Stocks are cheering the results as futures point to triple digit gain in DOW...
Dollar Suffers as Democrats Set to Regain House Majority
Dollar trades broadly lower as results of US mid-term election kick in. At the time of writing, Democrats already claimed victory of 163 seats in the House while Republicans got 159 seats. And the Democrats have already achieved a net gain of more than 23 seats up to regain...
Sterling Rally Continues Even Though UK PM May Achieved Nothing on Brexit at the Cabinet Meeting
Sterling remains rather resilient despite more Brexit negative news today. There seems to be no progress on negotiation at all and there is little hope for a November EU summit. Nonetheless, the Pound defies gravity and is trading as the second strongest one today. Australian Dollar is the strongest...
Australian Dollar Mildly Higher as RBA Raised Growth Forecasts, But Upside Capped
Australian Dollar trades broadly higher today after RBA stood pat but raised growth forecast a little. Though, it's being held below last week's high against both Dollar and Euro. More evidence is needed to prove its strength. Sterling, on the other hand, shows a bit promises by extending recent...
Sterling Firm Despite Weaker Data and Brexit News, Swiss Franc Weakest
Swiss Franc is clearly the weakest one for today so far. In particular selloff intensifies somewhat in European session. Weakness of the Franc also drags down Euro, which is trading as the second weakest. On the other hand, Sterling is taking turn to be the strongest with New Zealand...
Forex Markets in Range, Yawn Unambitious Chinese President Xi
The forex markets open the week rather quietly. Sterling and Dollar are generally firmer but are both kept below Friday's high. The Pound did attempt to rise against Euro at open but quickly retreated back into familiar range. On the other hand, New Zealand Dollar and Australian Dollar are...
Trade War Overshadows Fundmentals in the US, Election to Join the Party
What is a bigger driver of volatility in the markets, politics or monetary policy? Judging only from last week's development, politics got the nod, at least in the US. Investor sentiments initially sank on report that Trump was ready impose more tariffs on China, as soon as in December....
Dollar Trying to Recover as NFP Beat Expectations, Euro Strong as German-Italian Spread Narrows
After being pressured for most of the day, Dollar is trying to recover in early US session after better than expected job data. Though, momentum remains weak so far, and the greenback is trading mixed only. On the other hand, there is little change in Yen's fortune, which remains...
Progress in US-China Trade Talks Boosts Sentiments and Australian Dollar, Non-Farm Payroll Watched
Asian stocks, as well as Australian and New Zealand Dollar, are shot up by optimism that US-China trade negotiation is having some nice progress. At the time of writing, Hong Kong HSI is leading the way up with 2.4% gain. China Shanghai SSE is up 1.21%. Nikkei and Singapore...
Sterling Strong as Supported by More Confident BoE, Ignores Brexit Deal Dismissal and Weak Data
Sterling remains strong in general today, next to Australian and New Zealand Dollar. UK and EU officials came out dismissing the news regarding a Brexit financial services deal. But that didn't harm the Pound a bit. Instead, Sterling ignore weak manufacturing data and is supported by slightly more confidence...
Sterling Rides on Brexit Optimism, Look into BoE Economic Projections
Sterling surged overnight on Brexit optimism and is boosted further in Asia with more Brexit-positive news. Though, for today, it's overwhelmed by Australian and New Zealand Dollar on strong risk appetite. The Pound will need to look into BoE economic projections for more inspirations. Dollar, on the other hand,...
Dollar Lifted by Strong ADP Employment, EUR/USD to Take on 1.13 Key Support
Dollar is trading broadly higher today. In particular, new buying emerges after stronger than expected ADP employment report. USD/CHF breaches 1.0067 key resistance. Meanwhile, EUR/USD is also closing in on 1.1300 key support. Nonetheless, Dollar is overwhelmed by Sterling, which is the strongest one today. There is practically no...
Dollar Regains Control as Stocks and Yield Rebound, Facing Key Levels Against Euro, Sterling and Franc
Dollar index jumped overnight and breached 96.98 key resistance, with the help from rebound in stocks and treasury yields. But strength of the greenback mainly centered against Sterling, Swiss Franc and Yen. It's holding in range against Euro, Canadian and Australian for the moment. As for today, Sterling is...
Yen Extends Fall as Calm Markets Shrug US-China Trade War Threats
Yen trades broadly lower today as stock markets stabilized in both Asian and Europe. Meanwhile, Sterling, and Euro are following as the weakest. There is no sign of breakout of any kind in Brexit negotiation. Economic data out of Eurozone were also disappointing and point to further slow down....
Asian Markets Rebound as Trump Toned Down Trade War Threat, Dollar and Yen Soften
Early rebound in US stocks overnight initially supported Dollar. But the greenback couldn't hold on to the gains as stocks suffered steep reversal. Fed's rate hike was not the reason for the selloff. Instead, the trigger of the late selloff in US equities was threat of Trump's escalation of...
Yen Broadly Lower as European Stocks Surge on Italy, Dollar Mixed after PCE
Improved risk sentiment is the main theme of today. Italian stocks lead other Europeans higher as investors responded well to S&P's decision to keep Italy's ratings unchanged, two notches above junk. Additionally, auto shares are lifted by report that China is considering to cut car purchase tax by half....
Muted Reaction to S&P Rating Review on Italy, UK Hammond’s Budget Speech Awaited
Commodity currencies are trading mildly higher today as Asian markets turned mixed. Australian Dollar is the stronger one, followed by New Zealand. On the other hand, Swiss Franc is the weakest, followed by Euro and Yen. Reactions to S&P's rating review on Italy were rather muted. Sterling is also...
Investors Starting to Change Their Mind on Fed Hike Path after Global Stock Market Rout
Global stock market rout intensified last week with major indices ended in deep red. Over the week, Nikkei was the worst performing one and lost -5.98%. S&P 500 was the worst one in the US and dropped -3.94%. NASDAQ closed down -3.78%, DOW down -2.97%. In Europe, DAX was...
Dollar Firm as Q3 GDP Beat Expectations, Yen Even Stronger as Risk Aversion Intensifies Again
Yen and Dollar are trading as the strongest ones today as risk aversion intensifies again in European session. Stronger than expected Q3 GDP growth in the US is giving Dollar some support. But it's so far not enough to turn the tide with Yen. Commodity currencies are the weakest...
Australian Dollar Extends Down Trend, Yen Strong as Asian Stocks Ignore US Rebound
US equities staged a strong rebound overnight with DOW ended up more than 400 pts. But positive sentiment didn't carry on in Asia as major indices are all in red. Intensification in selloff in the Chinese Yuan is a possible factor even though we're not too convinced by this...