CFTC Commitments of Traders – Traders Bet Crude Oil, Gold and Silver Prices Higher
According to the CFTC Commitments of Traders report for the week ended February 18. NET LENGTH for crude oil futures gained +14 995 contracts to 411 764 for the week. Speculative long positions dropped -5 903 contracts while shorts declined -20 898 contracts. For refined oil products, NET LENGTH...
Safe Haven Flows into Gold and Treasuries on China Coronavirus Contagion
Outbreak of China's Wuhan coronavirus continued to be a big market mover last week. According to China's own numbers, new cases in the country seemed to have slowed even though new daily deaths maintained at around 100 level. What's worrying is that contagion to other countries, in particular Asia,...
European Majors Recover after UK and Eurozone PMIs
European majors recover today following better than expected PMI data from UK and Eurozone. Concerns of China's coronavirus hasn't materialized into business confidence data yet. On the other hand, commodity currencies are generally lower, followed by Dollar. For the week, while New Zealand and Australian Dollars are among the...
Markets Worried as Coronavirus Outbreak Widens, Aussie Decline Continues
Market moods turned sour again today as outbreak of the coronavirus seems to be getting more serious outside China. In particular, South Korea cases surged by 52 to 156. In China, there were 889 new confirmed cases yesterday, with total accumulated cases rose to 75465. China's Science and Technology said...
Dollar Firm after Solid Job and Manufacturing Data, Selling Focus Turns to Sterling
Dollar remains generally firm today as supported by solid job and manufacturing data. Euro's selloff seem to have temporary passed a near term climate and focuses turn to other major currencies. Australian Dollar suffer deep selling after job data, dragging New Zealand Dollar lower. Meanwhile, Yen is closing following...
Uncontrollable Coronavirus Spread Could Force the Fed to Resume Easing
The FOMC minutes for the January meeting revealed that policymakers remained content about the domestic growth outlook. However, they acknowledged the growing uncertainty emerged from the coronavirus outbreak. This could present significant downside risks to global growth. The situation of the epidemic has deteriorated significantly since the last meeting....
Aussie Tumbles as Unemployment Rate Surged, Yen Weak on Coronavirus Contagion
Australian Dollar is in free fall in Asian session today as surge in unemployment rate adds to case of April RBA cut. Sentiments are also generally weak as markets disapprove China's tiny rate cut. Instead, investors are concerned with sign of contagion of Wuhan coronavirus to other Asian countries,...
Sentiments Stabilized on China Stimulus Hope, Yen Falls on Political Pressure
Yen is under broad based selling pressure today as sentiments somewhat improved with expectations of more stimulus from China to counter the impact of Wuhan coronavirus outbreak. Additionally, Japanese Prime Minister Shinzo Abe is under increasing political pressure on handling the spread of the coronavirus in the country. Sterling...
Markets Stabilized as Focus Turns to FOMC Minutes, Dollar Resilient
Yen, Swiss Franc and Dollar weaken mildly today as risk markets stabilized. On the other hand, commodity currencies recover generally. But the movements are so far limited. Investors remain vigilant on the development of China's Wuhan coronavirus outbreak, but there is no breakthrough in either direction yet. FOMC minutes...
Euro Tumbles Again as Economic Sentiments Deteriorates Sharply, Markets Stays Risk-Off
Markets remain in risk-off mode today after Apple's warning that China's Wuhan coronavirus outbreak would hurt sales. Deep deterioration in German economic sentiment also reflect the impact on confidence. Investors will likely remain fragile until there is sign of full operation resumption in China. But that won't happen soon....
Haunted by Domestic Weakness and Coronavirus Uncertainty, Euro’s Weakness is Set to Continue
Currently trading at 1.083 against USD, lowest since April 2017, the single currency has plunged -2.4% in the first half of February. This follows a -1% decline in January. Disappointing economic data, renewed speculations on further rate cut by ECB and intensified global uncertainty as driven by coronavirus outbreak...
RBA Minutes Reveal that Members Consider Cutting Rates Below 0.75%, Warn of Coronavirus Uncertainty
In contrast to February’s RBA meeting statement, which demonstrated a less dovish outlook, the minutes revealed that the members considered lowering the policy rate further. Yet, they decided to keep the powder dry on concerns over “risks associated with very low interest rates”. The central bank was upbeat about...
Risk-off after Apple Warning, Euro Extending Decline ahead of German ZEW
Markets are back in risk off mode in Asia after Apple's warning. While Wuhan coronavirus cases in China might appear to have slowed, investors remain vigilant. More risks lie ahead with German economic sentiment data featured today. For now, commodity currencies are the weakest ones as led by Australian...
Markets Quiet With US on Holiday, Investors Shrug PBoC Stimulus
Markets are generally quite today with US on holiday. PBoC's stimulus measure might have boosted Chinese stocks higher. Reactions from other markets are rather muted. Investors remain generally cautious as this week's February sentiment data will reveal how much China's Wuhan Coronavirus outbreak is hurting confidence. In the currency...
Yen and Nikkei Lower on GDP Contraction, Pessimistic Outlook
Asian markets are mixed as another week starts. Nikkei weakens, together with Yen, as data showed the Japan economy suffered worst contraction in six years. Singapore Strait Times is also mildly lower after the government downgrade this year's growth forecast. Yet, China and Hong Kong stocks are trading mildly...
Euro Collapsed on Coronavirus Spillover Fears, Next Two Weeks Crucial
While China's Wuhan coronavirus outbreak remained a major focus last week and triggered much volatility. But overall, stocks investors seemed not too bothered, with US indices continuing record runs. Other major markets are mixed only FTSE and Nikkei ended the week lower only. Gold closed higher but is well...
CFTC Commitments of Traders – Gold Consolidates at High Level as Safe-Haven Demand Increases
According to the CFTC Commitments of Traders report for the week ended February 11. NET LENGTH for crude oil futures slipped -605 contracts to 396 769 for the week. Speculative long positions added +238 contracts while shorts gained +843 contracts. For refined oil products, NET LENGTH for gasoline added...
CFTC Commitments of Traders – Weak Economic Developments in Eurozone Drove Euro Lower
Weakness in Eurozone's economic data has led traders to trim bets on higher euro but raise short bets for further decline. As suggested in the CFTC Commitments of Traders report in the week ended February 11, NET LENGTH in USD Index gained +2 353 contracts to 19 486. Speculative...
Dollar Mixed after Shrugging Off Retail Sales, Euro Trying to Recover
Economic data released today are generally ignored by the markets. Dollar is mixed, paying little attention to US retail sales. Euro recovers mildly today on short profit taking ahead of weekend. But it remains the weakest one for the week. Swiss Franc and Yen are trading as the next...
Euro Selloff Deepens on Growth Concern, No Sign of Bottoming Yet
Euro remains the weakest one for the week as selloff deepens. It seems that markets believe the coronavirus outbreak in China would hurt Eurozone's economy more, in particular the export led German economy. Optimism of recovery this year is dented. Swiss Franc is somewhat dragged down by the common...