Markets Lack Clear Direction, Dollar and Yen Recover in Range
Overall markets lack clear direction today. Major European indexes are mixed in tight range. DOW future is down over -100 pts at the time of writing, but NASDAQ futures are up. Dollar recover mildly together with Yen and commodity currencies are the softer ones. But overall, major pairs and...
RBNZ Preview – Strong GDP Growth and Inflation Expectations to Anchor RBNZ Optimism
Strong first quarter GDP growth and rapidly rising inflation pressure suggest that the RBNZ would at least maintain a hawkish stance at this week's meeting. While the monetary policy measures will stay unchanged, policymakers will likely react to market expectations of a rate hike in November, compared with RBNZ's...
Dollar and Yen Soft in Subdued Asian Trading, Three Central Banks to Meet This Week
Dollar and Yen remain generally soft in quiet Asian session today. Nikkei staged a strong 2.2% rebound but there is little reaction in the currency markets. Major pairs and crosses are generally stuck inside Friday's range. Trading could remain subdued today with an ultra light economic calendar, without any...
CFTC Commitments of Traders – Traders Increased Bets in USD Futures amidst Price Rebound
As suggested in the CFTC Commitments of Traders report in the week ended July 6, NET SHORT of USD index futures gained +8 017 contracts. Speculative long positions added +2 309 contracts while shorts decreased -5 708 contracts. Concerning European currencies, NET LENGTH in EUR futures fell -9 956...
CFTC Commitments of Traders – Net Long Trimmed in Crude Oil Futures after Weeks of Price Rally
According to the CFTC Commitments of Traders report for the week ended July 6. NET LENGTH for crude oil futures slumped -25 139 contracts to 497 351 for the week. Speculative long position declined -24 799 contracts, while shorts added +340 contracts. For refined oil products, NET LENGTH for...
Dollar and Yen Could Turn Weaker Again as Risk Bulls Didn’t Give Up
Market bears had multiple chances to probe a bearish reversal last week, riding on talks like Fed's tapering, spread of Delta variants, and China's crackdown on its own technology stocks, as well as foreign IPOs. Yet, the optimists just refused to give up and pushed US indexes to new...
Market Reversing Prior Moves, Canadian Dollar Supported by Job Data
The markets are now reversing prior moves in the week, with Dollar, Yen and Swiss Franc trading generally lower. Canadian Dollar is supported by strong job data, while Aussie and Kiwi also recover. Major European indexes are trading slightly up as DOW futures is also up over 260 pts....
Euro Losing Downside Momentum Against Dollar as Sentiments Stabilized
Yen and Swiss Franc turn softer today as overall sentiments stabilized. US stocks once again pared back much of earlier losses overnight and closed just slightly down. Asian markets were just mixed only, with Nikkei also reversing most of earlier losses. Dollar is currently the stronger one for today,...
Swiss Franc and Yen Soar on Deep Risk Averse Sentiment
Risk aversion generally dominates the global markets today. Following selloff in Asia, major European indexes open lower and are trading down around -2%. DOW future is also losing around -500pts. Swiss Franc and Yen are overwhelmingly the strongest ones for the day, as followed by Euro and Dollar. Commodity...
Yen Rises Broadly as Hong Kong Free Fall Triggers Risk Aversion in Asia
US stocks surged to new record overnight, shrugging off FOMC minutes. But Asian markets are walking another path, as led by the free fall in Hong Kong stocks. Yen surges broadly on risk aversion, followed by Swiss Franc. Commodity currencies are generally pressured, with Aussie weighed down by dovish...
FOMC Minutes Reveals that QE Tapering to Begin Later this Year
The FOMC minutes for the June meeting confirmed more optimism over the economic outlook. Unwinding of stimulative monetary policy would likely begin earlier than previously anticipated. As the members would begin tapering discussions in coming months, we expect an announcement would be made by end of the year. Meanwhile,...
Dollar Softens as Risk Sentiments Stabilize, FOMC Minutes Next
The forex markets are generally range bound as traders await FOMC minutes. The main focus will be on discussions on the timing of tapering, which wasn't clearly indicated in the statement and economic projections. Dollar's rise appears to be losing steam as global sentiments stabilized today. DOW futures point...
Dollar and Yen Rebounds, Following Mixed Stocks and Sliding Yields
Yen and Dollar surged strongly overnight, but lost some momentum after on stocks recovered from initial steep selloff. Both are still firm with Asian markets in risk aversion mode. Canadian Dollar is currently the worst performing for the week, followed by Aussie. Focus will now turn to FOMC minutes...
Euro Drops after Germany ZEW, Kiwi and Aussie Maintains Gain
Euro drops broadly today following sharp decline in Germany ZEW economic sentiment. Swiss Franc is following down closely too. On the other hand, New Zealand Dollar remains the strongest on RBNZ rate speculations while Australian Dollar follows as support by RBA tapering. Yen and Dollar are mixed, together with...
RBA to Begin QE Tapering in September
As widely anticipated, the RBA announced some changes in the monetary policy. The overall tone of the meeting and the policy statement is upbeat about the economic recovery while cautious over the uncertainty and subdued inflation.
Policymakers remain optimistic over economic developments. As noted in the meeting, “the outlook for...
Kiwi Surges on RBNZ Hike Talks, Aussie Firm after RBA
New Zealand Dollar is the star winner in Asian session today on RBNZ rate speculations. The Kiwi has taken Aussie higher today, but the latter lost some steam after unsurprising RBA policy decision. Though, Aussie is still maintaining most of gains, together with Sterling. On the other hand, Dollar,...
Euro Shrugs Strong Investor Confidence, Markets in Subdued Holiday Trading
Overall, the forex markets are relatively mixed today and trading will probably continue to be subdued with US on holiday. Sterling is currently the stronger one, followed by Yen and Aussie. Canadian is the weakest, followed by Kiwi and then Swiss. Eurozone is mixed despite strong investor sentiment data....
RBA to Announce Adjustments in QE and YCC Programs
Important decisions will be made at this week’s RBA meeting. All monetary policy measures would remain unchanged. Yet, as indicated in June, policymakers would discuss on the format of QE purchases after completion of the current tranche in September, and the maturity of bonds in yield curve control. While...
Markets Shrug Weak China Services Data, Euro Soft ahead of Investor Confidence
Dollar and Yen recover some ground in mixed Asian session today. Stocks in Japan and Hong Kong are slightly down by China and Singapore are steady. Much weaker than expected services data from China triggered little reactions. Swiss Franc is retreating against other major currencies but losses are limited....
CFTC Commitments of Traders – Net Longs Declined in European Currencies
As suggested in the CFTC Commitments of Traders report in the week ended June 29, NET SHORT of USD index futures slipped -62 contracts. Speculative long positions added +629 contracts while shorts increased +567 contracts. Concerning European currencies, NET LENGTH in EUR futures dropped -1 911 contracts to 87...