Week Begins with Market Optimism, Metals See Strong Gains
Asian markets kicked off the week on a positive note, buoyed by the record-breaking rally in US markets last week. Despite escalating geopolitical tensions in the Middle East, which have spurred strong rallies in metals, stock investors appear relatively calm. Trading activity today may be muted due to bank...
Risk-On Sentiment Pushes US Stocks to New Highs, Safe-Haven Currencies Underperform
Risk-on sentiment dominated global financial markets last week, with investors buoyed by US inflation report that alleviated fears of another interest rate hike by Fed. The DOW defied gravity and surged to a new record high above the 40k mark, while S&P 500 and NASDAQ also set new records....
Dollar Still in Recovery With Indecisive Momentum; Eyes on USD/CHF Resistance
Dollar is gradually recovering from the selloff triggered by US CPI data release earlier in the week. However, the recovery momentum remains indecisive. US stock markets, after a record run, are taking a breather, but bullish sentiment still appears dominant. The stock rally might resume if DOW convincingly breaks...
Selling Pressure Shifts to Yen and Swiss Franc, Dollar Recovers on Fed’s Hawkish Remarks
Yen's selloff resumed after brief recovery yesterday and continued to weaken throughout Asian session. Markets largely ignored comments from former BoJ chief economist Toshitaka Sekine, who suggested the next rate hike could happen as soon as in June. The general understanding is that BoJ will at least wait for...
Dollar Recovers as US Stock Rally Stalls, Import Prices Pose Challenge
The strong rally in US stocks seen yesterday appears to lack follow-through momentum, with futures indicating a flat open today. The benchmark 10-year yield is fluctuating within a tight range, and Dollar is broadly recovering as selling momentum wanes. The strong increase in import prices serves as a reminder...
Dollar Selloff Continues as Risk-On Sentiment Drives US Stocks to New Highs
Dollar faced broad sell-offs overnight and continued to weaken in Asian session. Investors breathed a sigh of relief after US CPI data indicated that disinflation is progressing, which has reignited speculation about near-term rate cuts by Fed. Or at least, another rate hike is now highly unlikely, as repeated...
Dollar Drops as CPI Revives Hopes for Fed Rate Cut in Sep
Dollar falls broadly in early US session following the release of CPI data that shows disinflation resumed in April. This has reignited hopes that Fed is on track to start cutting interest rates by September, with Fed fund futures now indicating more than 70% probability of such a move....
Dollar Under Pressure as Markets Await Crucial US CPI , Aussie and Kiwi Lead Gains
Dollar remains broadly under pressure during Asian session as markets await the highly anticipated US CPI data. Expectations of Fed rate cuts have been building again since non-farm payroll data indicated a loosening job market. However, for the Fed to consider monetary easing, it is crucial that inflation shows...
Dollar Spikes on Strong PPI Data, Reverses as Bears Maintain Control
Dollar spiked higher after US PPI reported stronger-than-expected monthly rise. However, this upward movement was quickly reversed within minutes, indicating that bearish sentiment continues to dominate the greenback. The key question now is whether Dollar will see downside breakouts before tomorrow's crucial CPI release.
Sterling's movements have also been indecisive....
Yen Decline Persists, Pound Eyes UK Wage Data
Yen's decline persisted in Asian session, continuing to reverse its strong gains from earlier in the month. Traders seem confident that Japan will not intervene as long as Yen remains above 160 level against Dollar, with no apparent determination to push it through 150. This range appears to be...
Yen and Dollar Face Fresh Selling Pressure in Quiet Market
Fresh selling is seen in Yen and Dollar in early US session, as the markets are going through a quiet day. There is no immediate fundamental catalyst identified for these movements. Traders might be repositioning ahead of significant US economic data releases scheduled for later in the week. Producer...
Lower Inflation Expectations Weigh on NZD, Anticipation Builds for US CPI Release
New Zealand Dollar dips mildly as the new week began on a quiet note. This comes in wake of New Zealand weaker services data and the decline in short-term inflation expectations, which may provide some relief to RBNZ about the persistence of high inflation. However, the key question remains...
Global Markets Rally on Central Bank Easing Signals; Currencies Show Subdued Movements
Global markets were buoyed by pervasive risk-on sentiment last week, with both FTSE and DAX setting new records and major US indices posting substantial gains. Even Hong Kong HSI extended its rally from January's lows by 25%, underscoring a broad uptick in investor confidence. In Europe, enthusiasm was particularly...
Canadian Dollar Rallies on Strong Job Data, Sterling Support by GDP
Canadian Dollar surges in early US session after much stronger than expected job data that blew past market expectations. The Loonie is taking over Sterling's position as the best performer of the day, with the latter lifted slightly by strong UK GDP data. At the same time, Dollar is...
Weak Sterling Awaits UK GDP, Gold Poised to Reach Record High
Sterling remains one of the weakest performers this week, despite lack of strong selling momentum. BoE Chief Economist Huw Pill reaffirmed the market's expectations that the central bank would start to consider interest rate cuts in upcoming meetings. These messages echoed the slight dovish shift noted in yesterday's BoE...
Sterling Weathers Dovish BoE Impact; Dollar Slips on Poor Jobless Claims
British pound experienced some volatility following BoE's rate decision, which revealed a dovish tilt in both the voting pattern and the language used. Sterling dipped initially, but then made a swift recovery, surviving as Governor Andrew Bailey dovish remarks in his follow-up press conference.
Bailey stressed it's not time to...
Yen’s Struggle, Dollar’s Strength, and Sterling’s Anticipation
Yen continues to underperform as the worst for the week at this point, even in face of Japan's verbal interventions. As Yen breached 155 mark against Dollar again, Japanese Finance Minister Shunichi Suzuki reiterated his concerns over the detrimental impacts of a weakening Yen and promised a "thorough response"...
Dollar Making Progress in Quiet Markets, Yen Weakening Further
The financial markets are relatively quiet entering into US session. Despite a significant downturn in Japanese equities earlier, European markets have remained resilient, with major indices post modest gains. In the commodities sector, oil prices continue their near term decline, driven by expectations of increased supply coupled with dampened...
Dollar Recovery Continues, But Bulls Struggle to Secure Full Control
Dollar's rebound gained some momentum in Asian session today on resurgence of risk aversion. Selloff in Japan was most notable where key industry leaders like Fast Retailing, Nintendo, and Toyota saw substantial declines. The sentiment was further dampened after remarks from BoJ Governor Kazuo Ueda, who reiterated that Yen's...
Dollar Strengthens Modestly as Forex Markets Quiet
The forex markets are displaying some calmness today. While Dollar is trading as the strongest performer, it lacks clear upside momentum indicating a reversal of the decline started last week. With no significant economic data expected from the US for the remainder of the week, Dollar's next move hinges...