Market Overview
Yen Stays Strong on Risk Aversion and Trump Pushes for Auto Import Tariffs
Yen strengthens broadly today and remains the strongest one for the week. New wave of risk aversion trades was triggered by news that US President Donald Trump is using national security as excuse again to study imposition of tariffs on import cars. Nikkei closed down -1.11% at 22437.01 as...
Yen Crosses Dive with Treasury Yields on Risk Aversion, UK and Eurozone Data Misses
Yen surges broadly today as driving by steep decline in major European and US treasury yields. German 10 year bund yield dropped to as low as 0.497, comparing to prior day's close at 0.559, and it's now at 0.500. UK 10 year gilt yield reached as low as 1.446,...
Yen Surges Broadly Risk Appetite Fades, GBPJPY on Shaky Ground ahead of UK CPI
Yen surges broadly today and is trading as the strongest one, followed by Swiss Franc. On the other hand, Canadian, Australian and New Zealand Dollar are under heavy selling pressure. The boost from optimism in China-US trade talk faded quickly and the markets are back in risk-off mode. DOW...
Sterling’s Rebound Lacks Steam as BoE Carney Offered No Inspiration
The forex markets are lacking a clear direction today. Commodity currencies were generally higher earlier today but there was no follow through buying. Instead, as in early US session, the Swiss Franc is the strongest one. Dollar is retreating quite notably since yesterday. But again, there is no follow...
Australian Dollar Leads Commodity Currencies Higher on Strong Risk Appetite
Global markets are blessed by strong risk appetite this week so far. DOW closed up 298.2 pts or 1.21% at 25013.29. S&P 500 also gained 0.74% while NASDAQ jumped 0.54%. FTSE jumped to record high at 7859.17 while CAC 40 also extended recent up trend to 5637.5. These were...
Sterling Lower ahead of Important Week Brexit Talks, CPI and GDP Revision
The development in the forex markets are pretty much unchanged. Australian, Canadian and US Dollar remain the strongest ones for the day. On the other hand, Japanese Yen and British Pound have been taking turns to be the weakest. Receding risks of US-China trade war is a key focus...
Yen Lower as Receding Trade War Fears Lifts Risk Appetite, Dollar Extending Rally
Yen suffers broad based selling in today as lifted by return of risk appetite. Asian equities trade generally higher on receding fear of US-China trade war. The joint statement released on Saturday is seen as a "vow" to avoid trade war. It's affirmed by comments from US Treasury Secretary...
USD Index Futures Recorded Net Length, First Time since March
As we expected, USD Index futures turned to NET LENGTH of 18 contracts in the week ended May 15. This was driven by increasing pessimism over other major currencies. According to CFTC's Commitments of Traders report, reduction in speculative long positions greatly surpassed that of short for EUR futures,...
Dollar Rally Limited by a Number of Political Factors, Swiss Franc Ended as Strongest
Swiss Franc ended last week as the strongest one, very much thanks to the selloff in EUR/CHF. Uncertainty over the EU policy of the new Italian government sent Euro broadly lower, which ended as the weakest. Despite surge in 10 year yield to 7-year high, Dollar could only extend...
Euro Weighed Down by Italy, CAD Lower on Data, Dollar Back in Spotlight
Dollar takes back the driving street in early US session as it jumps higher against all other major currencies. Swiss Franc is probably the only one that can counter Dollar's strength, as helped by the selloff in EUR/CHF. Euro is weighed down by news that the populist parties of...
Canadian Dollar Lower on NAFTA Deadlock, Awaits CPI and Retail Sales
Dollar remains the strongest one for the week as supported by treasury yields. 10 year yield extended recent rally to close at 3.109 overnight, and it hits as high as 3.127 in Asian session. 30 year yield also jumped to near 30 year high at 3.246, breaking a key...
USDJPY Surges as 10 Year Yield Breaks 3.1, Sterling Pares Gains after May Dismissed Customs Union Stay
Dollar is extending its rally against Yen today, hitting as high as 110.79 so far. Persistent strength in treasury yield is giving the greenback some lift. 10 year yield reached as high as 3.12 earlier today and is staying firm at around 3.1. Nonetheless, while Dollar is firm against...
Sterling Rebounds as UK May Stay in Customs Union after Brexit, Beyond 2021
US treasury yields rally continues with 10 year yield hitting as high as 3.109 in Asian session. But the lift to Dollar is rather non-existence this time. The greenback is trading generally lower against others today and is mixed for the week. Sterling, on the other hand, is the...
Euro Cracked Down by Italian Populist Duo, Safe Haven Flow Caps Dollar Gains
Politics are the main drivers in the forex markets today. Euro tumbles broadly on concern of the populist policies of the coalition government in Italy. EUR/USD finally took out 1.1822 support decisively But the more important development could be in EUR/CHF which dives through 1.8 handle. Dollar actually doesn't...
Dollar Held by Near Term Resistance Despite Yield Inspired Rally
Dollar surged broadly as boosted by rally in US Treasury yield. 10 year yield hit as high as 3.90 overnight, the highest level since 2011, before settling at 3.08. While the greenback is strong, it's struggling to break through near term resistance levels decisively against Euro and Sterling for...
Dollar Shines as 10 Year Yield Hits Highest Since 2011
Dollar surges broadly today as boosted by strong rally in treasury yield. 10 year yield reaches as high as 3.049 so far today and breaks key resistance level of 3.036 (2013 high). TNX reaches the highest level since 2011. Released from US, retail sales rose 0.3% mom in April,...
Dollar Recovers as EURUSD Fails 1.2, UK Employment and German ZEW Watched
Dollar's corrective pull back yesterday was rather brief and shallow. EUR/USD reached 1.1995 but failed to break through 1.2 handle. It's now back at 1.1930. USD/CHF breached parity briefly to 0.9956 and is back above 1.0000 now. GBP.USD continued to stay in tight range above 1.3459 and failed even...
Euro Jumps as ECB Villeroy Indicates Rate Hikes Just Some Quarters Away from End of QE
Euro rises broadly today as lifted by hawkish comments from an ECB official. Sterling closely follow as the second strongest one. On the other hand, New Zealand dollar continues to suffer broad based selling pressure today, in particular against Australian Dollar. Yen follows as the second weakest on optimism...
Risk Appetite Returns as Trump Offers Concession ahead of US-China Trade Talks, Yen Weighed Down
Yen trades broadly lower today, expect versus New Zealand Dollar. Solid risk appetite is a factor pressuring the Yen. Nikkei closed up 0.47% at 28865.86, hitting the highest level in more than three months. Strong performance of cosmetics maker Shiseido is a factor driving the Japanese markets up. But...
Traders Getting More Bearish on AUD and Less Bullish on GBP
We initiate coverage on speculators' activities on major FX futures. According to CFTC's Commitments of Traders, speculators were bearish (NET SHORT) on CHF, JPY, AUD and CAD in the week ended May 8. Meanwhile, they remained bullish (NET LENGTH) over EUR, GBP and NZD. However, the positive sentiment has...