Yields Surged, Stocks Tumbled after Fed Powell, Dollar in Half-Hearted Rally
Fed Chair Jerome Powell's lack of concrete hint on action against rising nominal rates sent treasury yield higher, and stocks lower overnight. Dollar rode on risk aversion and jumped sharply higher. Nevertheless, the greenback's rally was concentrated against Euro, Swiss Franc and Yen only. Sterling, Canadian, and Australian are...
Swiss Franc and Yen Resumed Selloff, Markets Mixed Elsewhere
Selloff in Swiss Franc and Yen is the main focus today. But the forex markets are mixed elsewhere. Commodity currencies are mildly firmer as led by Aussie, but major pairs are just bounded in very tight range at the time of writing. Euro, Sterling and Dollar are mixed for...
Currency Trading Subdued, But Risk Aversion Building Up
Huge volatility continues in stock markets as Asian indices dive following the selloff in US overnight. But movements in exchange rates are relatively subdued, and mixed. Swiss Franc, Yen and Euro are currently the weaker ones for the week, followed by Dollar. Australian Dollar is leading other commodity currencies...
US Crude Inventory Recorded Biggest Weekly Increase in History
Sluggish demand and rising output to profit from strong oil prices lifted US inventory significantly last week. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks dropped -2.8 mmb to 1282 mmb in the week ended February 26....
Dollar Recovers Despite Sluggish ADP Job Growth, Yields Up Again
Dollar recovers in early US session as sluggish ADP job growth drags down stock futures. Additionally, treasury yields are having a mild rebound. At this point, Sterling is following as the strongest followed the day, then Canadian. New Zealand Dollar is leading Australian Lower, followed by Swiss Franc and...
Aussie Supported by GDP, Dollar Turns Soft in Consolidative Markets
The markets are relatively mixed so far. Dollar's rally attempt was brought to a halt overnight while Euro and Swiss Franc recovered. Commodity currencies also recovered, as led by Aussie, with support from better than expected GDP data. Yet, major pairs and crosses are kept in tight range. In...
China PMIs Affirm Broad-based Slowdown in Activities
China’s PMI readings eased further in February, signalling that economic growth is losing steam. However, vaccination program worldwide is sending hopes that global economic recovery will accelerate later in the year. This would benefit China which is the world's largest exporter.
Caixin’s services PMI slipped -0.5 point to 51.5 in...
Euro Drops on ECB Comments, Swiss Franc Weaker
Euro is under some pressure today after a heavy ECB official indicated the readiness to response to surging yields. But Swiss Franc is not too far behind. The forex markets are mixed elsewhere. Dollar is currently the stronger one, together with Aussie and Sterling. Meanwhile, Kiwi is the weaker...
RBA Review – QE Might Increase Further to Curb Rising Yields and Exchange Rate
As widely anticipated, the RBA left all monetary policy measures unchanged. As a summary, the cash rate target, the 3-year Australian Government Bond ‘Yield Curve Control’ (YCC) target and the Term Funding Facility (TFF) interest rate all stay at 0.1%. The size of the asset purchase program (QE) is...
Aussie Steady after RBA, Yield Retreats, Stocks Mixed
Global treasury yields softened mildly this week, which helped the rebound in US and European stocks yesterday. But the positive sentiment is not much reflected in Asian session today so far. Selloff in Swiss Franc and Yen, and to a lesser extent Euro, appears to be slowing. But these...
Swiss Franc Sold Off Again as Stocks Rebound, Yields Turned Mixed
Swiss Franc is in deep selloff again today as risk sentiment further stabilized in the markets. European indices rebound broadly while US futures point to higher open. Global bond markets also turned mixed for now. Euro and Yen are following as next weakest. Meanwhile, Canadian Dollar is leading other...
Markets Stabilize in Tight Range, Employment and Prices Data in Focus
Commodity currencies and Sterling recover broadly as sentiments in Asian markets stabilized, after mixed economic data. In particular, Nikkei is trading up over 2% at the time of writing, with help from strong PMI manufacturing. On the other hand, Yen turn softer together with Swiss Franc, Dollar and Euro....
RBA Preview – Assessing Impacts of Rising Yields on Economy after Unexpected Increase in Bond Buying
At tomorrow’s meeting, the RBA should leave all monetary measures unchanged. The cash rate, 3-year yield target and the rate on the TFF program will stay unchanged at 0.1%. The QE program will likely remain intact as the central bank only doubled the size to AU$200B last month. While...
A Wild Week of Metals, Yields, Stocks and Dollar
Just after DOW hit new record high in the middle of last week, the rally was choked by skyrocketing treasury yields. Dollar surprisingly ended as the strongest one for the week, followed by Euro and then Sterling. Australian Dollar suffered most as it reversed some of the month's gains....
CFTC Commitments of Traders – Risky Currencies Pulled Back on Profit-Taking
As suggested in the CFTC Commitments of Traders report in the week ended February 23, NET SHORT of USD Index futures dropped -436 contracts to 13 851. Speculative long positions added +1 750 contracts while shorts were up 1 314 contracts. Concerning European currencies, NET LENGTH in EUR futures...
CFTC Commitments of Traders – Traders Trimmed Bets on Crude Oil after Strong Rally
According to the CFTC Commitments of Traders report for the week ended February 23, NET LENGTH for crude oil futures fell -2 873 contracts to 511 840 for the week. Speculative long position sank -14 214 contracts, while shorts declined -11 341 contracts. For refined oil products, NET LENGTH...
Dollar Strong as Stocks Stay in Red Even Though Yields Retreat
Even though treasury yields are retreating mildly today, stocks are staying in red in Europe and Asia. US futures point to a recovery but it's unsure if the rebound could sustain before close. Investors are digesting comments from central bank officials regarding surging real long term rates and inflation....
Yields Up, Stocks Down, Dollar and Yen Rebound
US stocks suffered steep selling overnight on sharp rally in treasury yields, and the selloff carried forward to Asian markets. Yen and Dollar ride on the turn in risk sentiments and rebounded, together with Dollar. Australian and New Zealand are in deep pull back, together with Sterling. Euro and...
Euro Attempts a Come Back, Global Yields Surge Continues
Surging global yields remain the major focus today, with Germany 10-year bund yield hitting as high as -0.234, while UK 10-year gilt yield reaching as high as 0.818. Earlier in Asia, Japan 10-year JGB yield closed strongly at 0.152. US 10-year yield is also trading above 1.45. In the...
Team Risk-On Extends Leads as DOW Hits New Records
As DOW hit another record with strong rise overnight, team risk-on is extending the lead over team risk-off in the currency markets. New Zealand Dollar is having a mild upper hand over Australian, Canadian and Sterling for now. But the Loonie is trying to catch up with rising oil...