Market Overview
Canadian Dollar Selloff Extends after CPI and Retail Sales Misses, Dollar Rally Accelerating
Dollar's broad based rally continues today and is showing sign of acceleration. In particular, while Euro has been rather resilient, EUR/USD is starting to be dragged down by others as it dips through 1.23. While there is still some way to go, focus is now back o 1.2214 support...
Treasury Yield Rally Takes Dollar Higher, EUR/CHF Breaches 1.2
Dollar surged overnight as boosted by the strong rally in US treasury yield. 10 year yield gained 0.047 to close at 2.914, after hitting as high as 2.934. It's now close to a key resistance, February's high at 2.943. The greenback remains firm in Asian session. For the week,...
Sterling and Canadian Dollar Recover Losses, Markets Lack Dominant Theme
The major theme in the forex markets isn't too clear today. Sterling dips initially after retail sales missed expectation, but quickly recovered. Canadian dollar also pare back some of the post BoC decline, as lifted by strength in oil price. Australian Dollar gained earlier today but there is no...
Australian Dollar Shrugs off Job Data Miss, Sterling Looks into Retail Sales
Commodity currencies are trading broadly higher today as led by Australian Dollar. Strong rebound in the Chinese stock markets is seen as factor helping the Aussie, as SSE is gaining more than 1% at the time of writing. Canadian Dollar is also recovering some of yesterday's post-BoC loss. Sterling,...
Sterling Lost Ground and CPI Trend Raises Doubt on BoE May Hike
Sterling is the biggest loser today after CPI missed market expectations. Most importantly, it's the steep trend of slow down in inflation, from 3% in January to 2.5% in March that raised doubts on a BoE May hike. The Pound stabilized a bit after initial selloff. For the moment,...
UK CPI and BoC to Guide the Markets as Sentiments Improved
Markets sentiments turned positive as there were now continuous flow of bad news. All three of DOW, S&P 500 and NASDAQ closed higher overnight, with NASDAQ scoring the best performance. Technically, all three have taken out 55 day EMA decisively which suggests more near term upside. Nikkei follow and...
Sterling and Euro Reverse Gains after Disappointing Data, Dollar Rebounds Broadly
Sterling and Euro strengthened earlier today but both reversed earlier gains after disappointing economic data. On the other hand, Dollar is trying to make a come back as buying accelerates in early US session. It's more a coincidence than a response. But the greenback picks up momentum after US...
Sterling Firm as Markets Look into UK Unemployment Rate and Wage Growth, Aussie Lower after RBA Minutes
Sterling retreats mildly in Asian session today, against Dollar, Euro and Yen. But it remains the strongest one for the week. The breach of 1.4345 resistance in GBP/USD overnight signals medium term up trend resumption. But the rally slowed a little bit above there. For now, GBP/JPY is limited...
Dollar Weak after Mixed Data, Sterling Shines
Dollar remains general weak in early US session after mixed economic data, in particular against European majors. The greenback does try to rebound against Australian Dollar and Canadian Dollar. But momentum is being capped. Yen also tried to rebound earlier today but quickly lost steam. Sterling is emerging as...
Yen Making a Come Back in an Important Week for BoE and BoC
Yen is making a come back in Asian session today. The reaction to the Syria strike was muted. But risk aversion comes back with selloff in Chinese and Hong Kong stocks. Nikkei is maintaining slight gain of 0.25% at the time of writing. But China SSE and Hong Kong...
Yen and Franc Ended as the Weakest Ones as Risk Aversion Temporarily Eased, Reaction to Syria Strikes Watched
Easing risk aversion was the main theme last week as Japanese Yen and Swiss Franc ended as the weakest two. It's not the kind that investors were in euphoria. But nonetheless, major stock indices around the world ended up higher. Dollar ended as the third weakest despite markets firming...
Yen Selling Intensified, Dollar Supported by Hawkish Fed Rosengren
Yen continues to be the weakest one today as selloff intensifies in European session. Relieves from immediate risks are still as the major reason driving the Japanese currency down. Australian Dollar continues to be the strongest one with AUD/USD and EUR/AUD taking out key near term levels. Dollar was...
Australian Dollar Higher after China Data, EUR/AUD in Focus
Australian dollar strengthens broadly in Asia session as lifted mildly by China's trade data. The Aussie is also among the strongest ones for the week, together with Canadian Dollar and New Zealand Dollar. Euro suffered some selloff overnight, in particular against, Sterling. But the common currency quickly found footing...
Euro Tumbles after ECB Minutes, Dollar and Stocks Love Trump’s Uncertain Timing on Missile Strike
The financial markets don't always hate uncertainties. Sometimes, they embrace it. US President Donald Trump backed down from his initial tough stance on Syria, and it's now unsure when he will order firing of missiles over it. European equities cheered the newly created uncertainty with DAX turning initial loss...
Euro to Look into ECB Minutes for Guidance, Markets Steady in Asia
The Asian markets are relatively steady today as for now, there is no escalation in the situation in Syria. At the time of writing Nikkei is trading down -0.26% only while HK HSI is down -0.17%. Performance of US indices overnight were not too bad. DOW closed down 0.9%...
Risk Aversion Comes Back on Syria Tension, Dollar Gets No Help from CPI
Risk aversion comes back to the markets today. Syria tension comes into spotlight and US-China trade war leaves the stage temporarily. DAX turned south at initial trading and never looked back. It's currently trading down -1% at the time of writing. CAC id down -0.67% while FTSE is down...
Dollar Stays Weak as Focus Turns to US CPI and FOMC Minutes
Risk appetite stays strong so far with receding fear of full-blown trade war between US and China. Major US indices closed up overnight with DOW gaining 1.79%, S&P 500% risen 1.67% and NASDAQ up 2.07%. Hong Kong HSI is lifted further by more specific details regarding China opening up...
Yen and Dollar Broadly Lower, Markets on Risk on Mode as Trade War Fear Temporarily Relieved
Japan Yen and, to a slightly lesser extent, Dollar suffer broad based selloff today as global markets return to risk seeking mode. Major European indices are generally higher with DAX up near 1% at the time of writing. CAC is up 0.55% and FTSE is up 0.6%. That followed...
Markets Cheer as China Xi Didn’t Escalate Tension with US, Australian and Canadian Dollar Lead the Way Up
Asian markets responded positively to the highly anticipated speech by China President Xi Jinping. At the time of writing, Nikkei is trading up 0.65% and HK HSI is up 1.14%. But it should be noted that Nikkei is already trading way off today's high at 21933.99. We could see...
Sterling Surges Broadly, Taking Europeans Higher; Dollar Selling Emerges into US Session
Sterling surges broadly today and is so far trading as the strongest one. Some point to solid housing data as a trigger for the buying. Mortgage lender Halifax house price rose more than expected by 2.7% in Q1. And that should be something welcomed by BoE hawks on their...