Yen Stays Pressured on Surging Stocks and Yields, Dollar Keeps On Defending
Yen continues to feel much selling pressure, partly thanks to strength in treasury yields, and partly due to the strong rebound in US stocks overnight. Asian markets turned mixed, however, with Hong Kong and Singapore in slight red. New Zealand Dollar suffered notable selling on news that RBNZ is...
FOMC Minutes Reveal that Upgrade on Economy Greatly Hinged on More Fiscal Stimulus
The minutes for the September FOMC meeting reveals that the members generally agreed to adopt the new monetary policy framework and change the forward guidance in the way presented in the statement. While the economic projections were upgraded in the meeting, these were conditioned on the further fiscal stimulus...
Yen Plummets Again on Surging Yields, Dollar Awaits FOMC Minutes
Yen had a U-turn today and breaks near term support level against Dollar. Resilience in treasury yield is seen as a factor for Yen's weakness. After a brief set back yesterday, US 10-year yield looks set to extend recent rally through 0.78 handle. German 10-year yield is also trying...
Dollar Rebounds, Stocks Reversed as Trump Pulled Out of Stimulus Talks Abruptly
Dollar and Yen staged strong rebounds overnight, as stocks tumbled after US President Donald Trump halted stimulus talks abruptly. Though, markets somewhat stabilized in Asian session. Swiss Franc and Euro remain the strongest ones for the week for far but both have already pared back much of earlier gains....
Sterling and Aussie Turn Weaker, Dollar and Euro Mixed
Sterling is currently the worst performing one today so far, on the never-ending concerns of coronavirus infections and no-deal Brexit risk. Australian Dollar is closely following as second weakest after RBA indicated more easing ahead to support employment. On the other hand, New Zealand Dollar is currently the strongest,...
RBA Left Rates Unchanged at 0.25%. Hinted to Add Stimulus to Support Job Market
As widely anticipated, RBA left the cash rate unchanged at 0.25% at the October meeting. The yield curve control target also stays at 0.25%. This is the 7th consecutive month that the central bank has kept the monetary policy unchanged. While economic recovery is underway, policymakers judged that the...
Aussie Steady after RBA, Dollar Weak Despite Surging Yields
The forex markets are relatively steady in Asian session today, despite strong moves in stocks and treasury yields overnight. Australian Dollar is treading water after RBA left monetary policies unchanged. It's clear that the central is paving the way for more easing to support the job market. But the...
Euro Firmer on Data, Aussie Cautious ahead of RBA
Dollar and Yen remain generally weak today with main focuses on coronavirus infections news. It's still unsure if US President Donald Trump could be discharged form hospital today, but news regarding his coronavirus is so far positive. European Commission President Ursula von der Leyen had been tested negative for...
Asia Cheers Trump’s Health Improvement, Dollar Down
Yen and Dollar weaken in general as Asia markets recover on positive news on the situation of US President Donald Trump's coronavirus infection. Australian and Canadian Dollars are firm, but there slightly overshadowed by the Swiss Franc. But after all, movements in the markets are relatively limited, with most...
More Risk Aversion Likely after First October Surprise
Investors could have been anticipating an October surprise. But none could have expected it to come that early, with US President Donald Trump's coronavirus infections. The world has been in historically high level of uncertainty ever since the virus outbreak in Wuhan of China half a year ago. And...
CFTC Commitments of Traders – Greenback’s Near-Term Outlook Masked by US Political Uncertainty
As suggested in the CFTC Commitments of Traders report in the week ended September 29, NET SHORT for USD Index futures fell -3 591 to 5 555 contracts. Speculative long positions increased +2 908 contracts and short positions slipped -683 contracts. The greenback's outlook remains uncertain in the near...
CFTC Commitments of Traders – Safe Haven Buying in Gold Resumed
Net length in gold futures increased as a rise in speculative long positions was accompanied by a fall in speculative shorts. Traders also resumed accumulating gold on price correction. We expect net length in the yellow metal to rise further in the coming week as safe haven demand reemerged...
Mixed NFP Data Overshadowed by Trump’s Coronavirus Infection, Yen Staying Strong
Global markets are clearly staying in risk-off mode before weekly close. Mixed US job data was largely ignored. Eyes are staying on the development regarding US President Donald Trump's coronavirus infections, and the impact on the Presidential election which is just around a month away. Yen is currently the...
Risk-Off on First October Surprise, Trump Tested Positive for COVID
Markets suddenly turned into a risk-off mode on the first October surprise. US President Donald Trump and wife Melania had tested positive for coronavirus. Both were going to quarantine with Trump's scheduled cleared of all travels. Yen surges broadly as reaction. While Dollar follows higher, it's quickly losing momentum...
RBA Preview: Preparing the Market for Rate Cut and QE Expansion
RBA will likely use the opportunity of the upcoming meeting to prepare the market for more monetary easing in November. The stimulus measures due later this week should include reduction in the cash rate, yield curve control (YCC) target and Term Funding Facility (TFF) rate to 0.1%, from the...
Dollar Decline Paused after Better than Expected Data
Dollar attempted to edge lower earlier today but the bears are still not too committed. Selling has indeed turned to Yen in early US session, after some better than expected US data. The stocks markets are also lacking a clear direction as European indices open higher, but quickly reversed...
PMIs Suggest China’s Recovery Remained Intact in September. Yield Differential to Support CNY
The latest economic indicators show that China’s economy continued to recovery in September. NBS’ official manufacturing PMI climbed +0.5 point higher to 51.5 in September, beating consensus of 51.3. The non-manufacturing PMI also increased to 55.9 from 55.2 in August. The composite index gained +0.6 point to 55.1 last...
Dollar and Yen Pressured after Unconvincing Stock Rally
Dollar and Yen are generally weak in Asian, after being pressure overnight with a return to risk-on markets. US stocks were lifted on as Treasury Secretary Steven Mnuchin "made a lot of progress in a lot of areas" with House Speaker Nancy Pelosi on fresh stimulus. Yet, there was...
US Crude Oil Inventory Fell for Three Straight Weeks, while Cushing Stock Increased
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks dropped -0.57 mmb to 1421.11 mmb in the week ended September 25. Crude oil inventory dropped -1.98 mmb (consensus: +1.57 mmb) to 492.43 mmb. Stockpile decreased in 4 out...
Markets in Range, Trapped by Low Month-End Volatility
The forex markets are generally staying in tight range today, without much reaction to better than expected job data from US and GDP from Canada. Nor was there much movements after comments from ECB President and BoE Chief Economist. Subdued month-end trading is keeping volatility very low. Nevertheless, it's...