Swiss Franc Outperforms as Global Inflation Data Lack Lasting Impact on Forex
Inflation data were the key drivers in the forex markets last week, though they failed to produce any sustained movements across major currencies. Australian Dollar rallied following robust CPI figures, yet its gains were limited by the prevailing risk-off sentiment in the region.
Similarly, Euro received a modest boost after...
Euro Rallies on Inflation Surprise, US PCE Data Bolsters Stocks
Euro surges broadly today after Eurozone inflation data showed larger than expected re-acceleration in May. While this increase doesn't shift the consensus that ECB will proceed with a rate cut next week, it significantly dampens any remaining expectations for a subsequent cut in July. Market speculation now leans towards...
Inflation Data from Eurozone and US Takes Center Stage
Dollar continues its struggle to find direction, and stay in familiar range against most major currencies except against Swiss Franc. Markets shift their focus to the upcoming release of April US PCE data for guidance. Currently Fed fund futures are indicating a 50/50 chance of a rate cut by...
Swiss Franc and Yen Surge as Dollar Lags in Risk-Averse Markets
As US session commences, Swiss Franc and Japanese Yen are trading as the day's strongest currencies, fueled by risk aversion in US markets. While major European indices exhibit only modest fluctuations, US futures indicate notably lower opens, reinforcing the cautious sentiment among investors.
Swiss Franc's additional strength can be traced...
Treasury Yields Spike and Safe-Haven Currencies Ascend
The US financial markets were enveloped in a wave of risk aversion that continued into Asian session, primarily driven by the notable surge in Treasury yields. This uptick in yields followed an auction of seven-year debt that closed with higher than anticipated yields, raising alarms about weakening demand for...
Risk Aversion Dominates Amid Light Economic Calendar
Risk aversion is the prevailing theme in the global markets today, with major European indexes trading in the red and US futures pointing to a lower open. Australian Dollar reversed its earlier post-CPI gains and is currently the worst performer of the day, followed by New Zealand Dollar and...
Australian Dollar Strengthens Modestly on Surprising Inflation Data
Australian Dollar is having a modest bounce today after stronger-than-anticipated inflation figures. The data also revealed re-acceleration of inflation for the second consecutive month, with core inflation measures also rising. While most economists still view a further rate hike by RBA as unlikely, today's surprising data suggests that such...
Swiss Franc Rises Sharply Amid Middle East Tensions; EUR/CHF in Short-Term Correction?
Swiss Franc is having a significant surge today, likely due to flight to safe-haven assets amid rising tensions in the Middle East. Reports have emerged that Israeli military tanks were seen in central Rafah for the first time since the Israel Defense Forces entered the city earlier this month....
Aussie Rises Despite Sluggish Retail Sales, Boosted by Chinese Housing Measures
Australian Dollar strengthened broadly in Asian session today, shrugging off lackluster retail sales data. Instead, Aussie is responding positively to Shanghai's announcement of significant policy measures aimed at boosting the housing market. Yesterday, China's commercial and financial hub declared it would relax home purchase restrictions and provide subsidies for...
Subdued Holiday Trading Precedes Key Inflation Data Releases
Trading has been characteristically subdued in the Monday's Asian session. Japanese Yen is have a broad but weak recovery, with no clear indication of a reversal from its recent selloff. Australian and New Zealand Dollars are also mildly firmer, following rebound in Asian stocks. Meanwhile, Swiss Franc and Euro...
Sterling Climbs as Markets Dial Back BoE Rate Cut Expectations
Last week, global financial markets were heavily influenced by evolving expectations surrounding central bank monetary easing paths and unexpected political developments. British Pound emerged as the most significant gainer, buoyed by fading expectations of an immediate BoE rate cut in June. This shift was precipitated by latest inflation data...
Euro Rebounds With Sterling, Dollar Softens Despite Solid Durable Goods
Euro rebounded notably today despite the absence of substantial news from Europe. Sterling followed suit, shrugging off poor UK retail sales data. Conversely, Dollar ignored upbeat durable goods data and weakened alongside Yen and Swiss Franc. Commodity currencies displayed mixed performance. It appears that traders are lightening up their...
Dollar Gains Momentum as Fed Hike Re-Enters Markets Pricing, Despite Ultra Low Odds
Dollar's rebound is gathering momentum, as fueled by yesterday's data indicating a resurgence in the services sector, which could impede disinflation progress. While fed fund futures still reflect over 50% probability of a rate cut in September, there is now a 0.6% chance of a rate hike—an occurrence not...
Euro Recovers on Eurozone PMIs, But Gains Limited
As trading progresses into US session, activity in the forex markets remains relatively muted. Euro is showing signs of recovery ahead of key support levels against Dollar and crucial support against Sterling. Eurozone PMIs revealed that economic recovery is strengthening, with Germany, the region's largest economy, finally catching up....
Dollar Recovers Post-Hawkish FOMC Minutes, EUR/GBP in Focus
Trading has been relatively quiet in Asian session today. Dollar regained some ground overnight following hawkish minutes from the latest FOMC meeting, which revealed that several members are prepared to support further rate hike if necessary. Despite this, the greenback lacks clear follow-through momentum at present. For a more...
Sterling Up as BoE June Cut Hopes Diminish; But Dollar and Kiwi Outshine
Sterling climbed broadly today after data showed that UK disinflation progress was slower than anticipated, with services inflation remaining persistently high. This development dashed hopes for an imminent rate cut by BoE, causing the odds of a rate cut in June to plummet from around 50% to below 20%....
NZD Spikes on Hawkish RBNZ Decision, Focus Shifts to UK Inflation Data
New Zealand Dollar surged sharply higher following RBNZ's unexpectedly hawkish rate decision. While OCR was left unchanged, the central bank signaled the increased possibility of another rate hike this year and delayed projected timing of the first rate cut to the second half of 2025. However, Kiwi quickly gave...
CAD Sinks after CPI, NZD Await RBNZ
Canadian Dollar sees a broad decline in early US session due to growing speculation about rate cut by BoC in the near future. April's headline CPI slowed as expected, despite a significant increase in gasoline prices. Core inflation measures also showed more progress in disinflation than anticipated. While it...
Aussie and Yen Decline, Loonie Awaits Crucial CPI Data
Australian Dollar weakened broadly during Asian session as its recent rally lost momentum. Despite RBA minutes revealing that a rate hike was considered earlier this month, which should have been supportive for the Aussie, this positive sentiment was countered by weak consumer sentiment readings. Additionally, Aussie seemed to be...
Risk-On Rally Continues in Quiet Markets, Forex Lacks Direction
Global financial markets are trading with a risk-on sentiment today, starting from the Asian session and continuing through the European and early US sessions. However, gains in stocks have been relatively limited, partly constrained by recovery in benchmark treasury yields, and partly capped by low trading activity.
In the currency...