Dollar Dips after Durable Goods Orders Contractions, Euro Pare Losses
The currency markets are relatively quiet today, with major pairs bounded inside yesterday's range. Dollar weakens after poor durable goods orders data, but New Zealand Dollar is even weaker. Euro recovers after yesterday's selloff, followed by Canadian Dollar ans Swiss Franc. For the week, Aussie is the strongest one,...
Euro Stays Weak in Mixed Markets, Canadian Attempting a Rebound
Euro and Swiss Franc remains broadly pressured today even though there is no follow through selling yet. But markets elsewhere are relatively mixed. While Australian and New Zealand Dollar attempted for a rebound, Dollar and Yen are not overwhelmed yet. Canadian Dollar is slightly stronger for now as oil...
Euro Downside Breakout after Terrible PMIs, Dollar Dragged by Jobless Claims
Euro suffers heavy selling in today on terrible PMI data, which suggests that the coronavirus pandemic damage could be far more severe than imaginable. The common currency drags down the Swiss Franc too. Dollar couldn't ride on Euro's weakness and even faces some selling after another set of astronomical...
Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price Collapse
Canadian dollar has only edged lower amidst the recent collapse in crude oil price. This is not usual given the strong correlation between the loonie and oil price, as well as the contribution of the energy sector to the country’s economy. We believe the FX market has not fully...
Euro Awaits PMIs as Markets Need More Guidance
Directions in the markets are relatively unclear for now. US stocks closed higher overnight, but relatively close to opens. Asian markets are mixed with slight gains in Nikkei and HSI. WTI crude oil seems to be stabilizing above 10 handle after horror actions earlier. In the currency markets, Dollar...
Downside Risks on WTI Crude Oil Remain High as Inventory Continued to Build Rapidly
WTI crude oil for May delivery expired at US$10.01/bbl on Wednesday, following a collapse to the negative territory a day earlier. The June contract (front-month) settled at US$ 13.78/bbl on the day. Lack of storage remains a problem in the US as demand has been sharply lowered due to...
Dollar Pares Gains as Oil and Stocks Recover, Yen Softens Too
Dollar pares back some of this week's gains as global risk markets recover. WTI crude oil June contract also trades higher and is back pressing 13 handle. Naturally, Yen follows the greenback as the second weakest for the day. On the other hand, Australian Dollar is the strongest, followed...
Dollar Firm on Risk Aversion, Oil Stays Pressured
Dollar and yen are staying in the driving seats for the week so far, on risk aversion. After the historic horrors of the May WTI oil contract, the markets are now into June contract, which is down at around 10. Asian markets are trading generally down, following the US....
Sterling and Commodity Currencies Pressured as Oil Rout Continues
Risk aversion stays in the markets today as WTI crude oil May future is back in negative territory above a brief stay above zero. Investors also turned cautious on news about critical health condition of North Korean leader Kim Jong-un. Yen and Dollar continue to trade as the strongest...
Negative Oil Price Prompts Risk Off, Dollar and Yen Jump
Markets are generally back in risk aversion, as selloff was sparked by historic move in oil prices. Yen and Dollar strengthen broadly as a result. Canadian dollar was weighed down slightly too but selloff is limited so far. Instead, New Zealand and Australian Dollars are the weakest for now....
WTI Crude Oil Price Dived to Negative as Oversupply Sparks Concerns about Storage
A day ahead of expiration, WTI crude oil futures for May delivery slumped into the negative territory for the first time on history. Plunging by over 100%, the May contract slumped to as low as US$ -40.32/bbl before settling at -37.63. In Asian session today, the contract recovered to...
Euro Mixed While Risk Markets Dragged By Oil Price, No Clear Direction For Now
Markets are in mild risk averse mode as oil price tanks further. But losses are limited so far based on recent standard. Major currency pairs and crosses are also stuck in Friday's range, except that New Zealand Dollar is lifted by lockdown exit. Canadian Dollar is the weakest one...
PBOC Cut Policy Rate to 3.85%, More Easing on the Way
PBOC cut the 1-year loan prime rate (LPR), by -20 bps, to 3.85% today. The move has been widely anticipated as the central bank lowered the 1-year MLF rate by the same size last week. LPR is the best lending rate offered by commercial banks, while the MLF rate...
Nikkei and Yen Lower as Japan’s Export Hit Hard by Coronavirus
Markets are rather quiet in Asia today. Nikkei is pressured after poor trade data from Japan. But movements in other major Asian centers are muted. New Zealand Dollar appears to be lifted by the country's plan to exit top level lockdown. Dollar is currently the second strongest. On the...
CFTC Commitments of Traders – Traders Bet Higher Euro on First Sign that Coronavirus Pandemic is Under Control
As suggested in the CFTC Commitments of Traders report in the week ended April 14, NET LENGTH in USD Index added +333 contracts to 15 357. Speculative long positions gained +1 044 contracts and short positions added +711 contracts. Concerning European currencies, NET LENGTH in EUR futures rose +6...
CFTC Commitments of Traders – Signs of Bargain-Hunting Emerged as Crude Oil Price Slumped to Two Decades’ Low
According to the CFTC Commitments of Traders report for the week ended April 14, NET LENGTH for crude oil futures gained +25 774 contracts to 510 669 for the week. Speculative long positions jumped +44 703 contracts while shorts added +18 929 contracts. Traders bet high crude oil prices...
Yen Ended Higher, Dollar Mixed, Despite Risk Rally
Global stock markets were some what supported by talks of staged exit of coronavirus lockdown. There was optimism that finally a cure for the virus too. Nevertheless, the extended rebound in stocks were not much reflected in the currency markets. Yen ended the week as the strongest one, followed...
Markets to End on a High Note? Yen and Oil Might Not Agree
Global markets are set to end the week on a high note. There is optimism that Gilead's coronavirus drug remdesivir could be the cure for the coronavirus. Also, traders responded positively to US President Donald Trump's three-stage reopening plan. Commodity currencies are trading generally higher today. Dollar, Euro and...
China’s GDP Contracted the Most in Decades as Driven its Self-Produced Coronavirus
The coronavirus outbreak, started in China, has evolved into a global pandemic, causing great damage to the world economy. The latest data show that it led China to the worst economic downturn on record. Major macroeconomic indicators in March show less significant contraction than a month, a result of...
Staged Lockdown Exit and March Chinese Data Lift Sentiments, Dollar Softens
Dollar weakens mildly again as risk appetite is lifted by the three-stage plan to exit lockdown in the US. While Q1 GDP contraction in China was deeper than expected, March data also provided some optimism of return to normal. As Asian markets rebound, Yen and Swiss Franc are following...