Market Overview
Aussie Stays Firm With Copper’s Rally Giving Extra Support
The forex market continues to display a mild risk-on mood, with commodity-linked currencies Australian, New Zealand, and Canadian Dollars gaining ground. In contrast, safe-haven currencies Japanese Yen, Swiss Franc, and Dollar are under pressure.
Australian Dollar jumps earlier today following RBA's decision to hold rates steady, combined with China's broad...
Aussie Jumps as RBA Holds Steady, Markets Lifted by China’s Stimulus Push
Australian Dollar surged broadly today following RBA's decision to leave interest rates unchanged at 4.35%, as widely expected. What caught the market's attention was RBA's continued focus on inflation risks, making it clear that the central bank is not considering a rate cut anytime soon. During the post-meeting press...
Euro Slumps on Weak PMI as ECB Oct Cut Speculation Heats Up
Euro took a sharp dive today following disappointing PMI data that fueled fresh speculation about ECB potentially moving up its anticipated rate cut. Markets had been bracing for a December cut, timed with the release of new economic forecasts. However, the mounting risks of stagnation and even recession in...
Aussie Gains Ground, Overcoming PMI Weakness on China’s Rate Cut Boost
Australian Dollar managed to climb modestly in a quiet Asian trading session today, despite underwhelming PMI data from Australia. With Japan on holiday, the session saw limited movement, but risk-on sentiment helped offset some of the negative impact from the weak data. In contrast, Yen and Swiss Franc extended...
Dollar With Limited Losses After Fed; Yen Slumps; Sterling Soars
Dollar finished last week on the back foot, reacting to Fed's decision to cut rates by 50 bps. While the greenback lost ground to most major rivals, its decline was relatively modest. Notably, Dollar managed to close higher against both Japanese Yen and Swiss Franc, and it continued to...
Sterling Rallies on Strong Retail Sales as Yen Struggles
Sterling climbed broadly today, fueled by unexpectedly strong UK retail sales data that more than compensated for the lackluster consumer confidence report. Despite ongoing high interest rates and persistent inflation, British consumers appear to be resilient, continuing to spend. This bolsters the position of hawkish members within the BoE's...
Risk-On Rally Continues, Yen Remains Soft Following BoJ Hold
Global markets continues to a wave of risk-on sentiment today, with Japan's Nikkei leading the charge in Asia. The index maintained its gains after BoJ decided to keep interest rates unchanged, a move that was widely anticipated.
This positive momentum stems from the strong performance of US equities overnight, as...
Sterling Gains on Cautious BoE, Investors Embrace Fed’s Message
Sterling surged notably today and reached its highest level against Dollar since March 2022. The move followed BoE's decision to hold interest rates steady as expected. The surprise came from Deputy Governor Dave Ramsden, who chose not to vote for a rate cut. The overall tone from BoE suggests...
No Fireworks After Fed Cut, Attention Turns to BoE
Market reactions were indecisive after Fed's much-anticipated rate cut overnight. The initial optimism that sparked a rally in US stocks quickly fizzled out, with major indexes closing in the red, while Treasury yields staged a recovery.
The reaction was somewhat anticlimactic but understandable given the unusually high level of uncertainty...
Sterling Climbs as UK Core Inflation Accelerates, Dollar Softens Ahead of FOMC Decision
Sterling strengthened across the board today after UK CPI data revealed reacceleration in core inflation. The uptick in core CPI provides additional support for hawkish members of the BoE's MPC, bolstering the case for a rate hold at tomorrow's decision. A rate cut is still expected in November, when...
Fed’s Moment of Truth: Will Markets Soar or Plunge After the Call?
The much-anticipated FOMC day has finally arrived, and the financial world is eagerly waiting to see if Fed will opt for a 25bps or a more assertive 50bps rate cut. With market expectations split nearly down the middle, and likely some internal divergence within FOMC itself, the outcome is...
Loonie Slips on Soft Inflation, Broader Market Stays Quiet as Traders Await Fed
Canadian Dollar is broadly lower in early US trading following weaker-than-expected inflation data. With CPI decelerating further than anticipated, this set of data provides BoC some breathing room to ease monetary policy more aggressively if necessary. The spotlight now shifts to the upcoming September employment report, which will be...
Investor Sentiment Wavers Despite DOW’s Highs, Loonie Pressured Ahead of CPI
Investor sentiment is currently mixed, reflecting the heightened uncertainty surrounding this week's crucial Fed meeting. While DOW surged to a fresh record high overnight, and S&P 500 edged closer to its historical peak too, the tech-heavy NASDAQ struggled, ending the session in negative territory. The mixed performance extended to...
Dollar Weakens as Traders Boost Bets on 50bps Fed Cut
Traders continue to ramp up bets on a 50bps rate cut by Fed this Wednesday, with market odds now sitting at 65%. This increasing expectation is driving DOW futures higher, positioning the index for a potential new record high in the upcoming regular trading session. However, S&P 500 and...
FOMC Uncertainty Looms Over Quiet Markets as Yen Strengthens
Market activity in Asia has been unusually subdued today, with trading volumes even quieter than expected for the first session of the week. The holiday closures in Japan and China are partly responsible for the reduced momentum, but a larger factor looms over the markets: the upcoming FOMC meeting,...
Rumors Eclipse Data in Market Sentiment, Dollar Braces for Downside Risk
The financial markets have been more influenced by speculations than by concrete economic data, as anticipation builds ahead of Fed's interest rate decision on September 18. Recent US economic indicators, including the latest CPI report and the prior week's non-farm payrolls, pointed toward a cautious and modest 25bps rate...
Yen Leads Weekly Gains While France Stages Come Back
Yen continues to strengthen broadly today, maintaining its position as the best-performing currency of the week so far. Renewed speculation around a possible 50bps rate cut by the Fed has provided an extra lift to the Japanese currency. Additionally, renewed weakness in US and European benchmark yields further supports...
Fed’s Rate-Cut Debate Intensifies, Dollar Tumbles Amid Renewed 50bps Speculation
Dollar fell sharply overnight as the probability of a 50bps rate cut by Fed next week increased significantly. According to fed fund futures, the odds of a half-point cut now sit at around 40%, a notable jump from just 14% the day before. Market participants had widely assumed that...
Euro Recovers Ground as ECB Cuts Rates; Gold Surges to Record High
Euro made a modest recovery following ECB's decision to cut deposit rate by 25bps, a move widely anticipated by the markets. The rate cut, decided unanimously, brings the deposit rate to 3.75%. During her post-meeting press conference, ECB President Christine Lagarde provided no surprise, reiterating the central bank’s commitment...
Impressive Stock Reversal after CPI Setback, Eyes Now on ECB Rate Cut
The stronger-than-anticipated core inflation data initially sent shockwaves through US equities overnight, sparking a deep sell-off. However, tech stocks led a remarkable recovery, with all major indexes finishing in green. Notably, S&P 500 posted a remarkable reversal, ending the day up more than 1% after having fallen over -1%...