Market Overview
Dollar Staying Range Bound an PCE Matched Expectations, Sterling Rebounds after Initial Selloff
Dollar remains firm in early US session after release of personal income and spending data. But now, the green back is held below Friday's high against all but Sterling. Canadian Dollar follows as the second strongest. The Pound was initial sold off earlier today but then quickly rebounded. It's...
Forex Markets Steady as Heavy Weight Data from US, Eurozone and UK Awaited
The forex market open the week rather steadily with major indices stuck inside Friday's range. Aussie is generally lower followed by Yen. Meanwhile, Sterling, Dollar and Swiss Franc are generally higher. But the picture could quickly change as volatility comes in. The week ahead is full of important events...
Dollar and Yield Reached Critical Junctures after Strong Rally, Determining Events ahead
Dollar was given a powerful boost last week on a couple of factors. Firstly, 10 year yield extended recent bull run and hit 3% level for the first time since 2014. Secondly, Euro was sold off steeply after the confusing messages from ECB President Mario Draghi during the post...
Dollar Rally Exhausted after Multiple Boosts this Week, Sterling and Euro Tumbled on GDP Misses
Dollar's rally seem to be a bit exhausted in early US session. After all, the greenback was lifted firstly by yield earlier this week, then by ECB yesterday. Additional buying jumped in after French GDP miss and than UK GDP miss in European session. Hence, even though the greenback...
US and UK GDP to Take Center Stage, BoJ Stands Pat
Dollar is trading mildly lower today but remains the overwhelmingly strongest one for the week. The greenback was, on the one hand, pushed higher overnight thanks to the steep post ECB selloff in Euro. Dollar index hit as high as 91.63 and continued to build up the case of...
Euro breaks down after reassessing ECB Draghi, where next?
We've pointed out in the quick comment updates that there was no follow through buying in Euro despite the rebound attempt. That rebound was initially triggered by ECB President Mario Draghi's introductory statement that talked about the "solid and broad-based expansion" despite weaker than expected data. However, there was...
Euro Holding on to 1.2154 against Dollar on Cautiously Upbeat ECB Draghi, Dollar Weakens as Yields Retreat
Euro recovers against Dollar after ECB president Mario Draghi tried to play down concerns over recent weak Eurozone data. But his usual cautiousness is so far capping Euro buying. On the other hand, Dollar's rally also loses some steam, in particular against Yen as 10 year yield dips back...
EUR/USD Eying 1.2154 Key Support as Markets Seek ECB Draghi’s View on Q1 Slowdown
Dollar retreats mildly in Asian session today but remains the strongest one for the week. US 10 year yield finally took out 3% level overnight with some conviction. TNX hit as high as 3.035 before closing at 3.024, up 0.041. The development helped lifted Dollar Index above key near...
Dollar Surges as 10 Year Yield is Having Another Take on 3%
Dollar jumps again today as 10 year yield is having another attempt at 3% handle today. The greenback is trading above yesterday's high against all major currencies except Sterling. And for now, Yen is actually not the weakest one. Instead, commodity currencies and Swiss Franc are the worst performers....
Intermarket Movements to Drive Forex Trading with Light Calendar Today
Dollar traded mixed overnight as while 10 year yield breached 3% handle, there was no follow through selling in bonds that kept it above that level. On the other hand, the situation was complicated by the selloff in stocks due to earnings, which propelled Japanese Yen briefly higher. The...
Dollar Turned into Consolidation, German Ifo Miss Gives Euro No Support
Dollar engages in consolidative trading today as markets digest recent sharp gains. Also, as pointed out before, 10 year yield should a sign of hesitation ahead of 3%, and it might take a bit more time to overcome this level. While housing data is a focus in the US...
Dollar Pares Gain as Yield Hesitated ahead of 3%, German Ifo Watched
Dollar pares back some gains in Asian session today after yesterday's yield driven rally. 10 year yield hit as high as 2.990 during regular trading hour before closing at 2.973, up 0.022. However, that was below open at 2.975 and thus, showed a bit of hesitation ahead of 3%...
Dollar Marches on as 10 Year Yield Presses 3%
Dollar's broad based rally extends today with the support of surging US treasury yield. 10 year yield hit as high as 2.99% in premarket, and is flirting with 3% level. Meanwhile, Japanese yen are trading as the weakest one. Euro suffered some selling earlier today after mixed PMI data....
Quiet Start to a Week of Guaranteed Volatility, on Yields, Central Banks, Data and Politics
The financial markets are pretty quiet as another week starts. Despite positive news regarding Korean peninsula, major Asian indices are trading slightly lower. At the time of writing, Nikkei is down -0.28%, HK HSI is down -0.66%. In the currency markets, major pairs and crosses are bounded in Friday's...
Dollar Dominated the Markets as Treasury Yields Could be Reversing Multi-Decade Down Trend
Dollar ended broadly higher last week as boosted by surge in treasury yields. 10 year yield finally completed its consolidation that started back in February, and rose through 2.943 high to close strongly at 2.951. That came with the background that recent comments from Fed officials affirmed its gradual...
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,...