Yen rises notably today as focuses turn back to US-China trade negotiations after central bank activities and economic data releases. There are renewed concerns that even if a phase one deal could be reached, the next phase(s) would be very difficult. Dollar remains generally soft and is currently trading...
Both Dollar and Canadian are under tremendous selling pressure after respective central bank announcements overnight. Fed chair Jerome Powell did signal a pause after yesterday's rate cut. Yet, his message was too non-committal and let Dollar bulls dissatisfied. On the other hand, BoC was clearly more dovish than expected...
BOC turned dovish in the October meeting, while maintaining the policy rate unchanged at 1.75%. For the first time, the central bank discussed about “insurance” rate cut, citing trade war’s damage to business investment and exports. The announcement sent the loonie lower, giving half of the gains made earlier...
FOMC delivered a hawkish cut at the October meeting. The central bank lowered the Fed funds rate, by -25 bps, to 1.5-1.75%. Yet, the Fed removed the language that it will act to sustain expansion at the forward guidance. This appears that the Fed has prepared to pause after...
Dollar continues to trade mixed in early US session. Negative effect of ADP job data is more than offset by stronger than expected Q3 GDP growth. The greenback will now look into FOMC rate decision for guidance. The key is whether Fed will signal the end of mid-cycle adjustment...
Dollar and Canadian are both trading with an undertone as markets await BoC and FOMC rate decisions, as well as US GDP data. Sterling appears to be mildly firmer as UK is finally heading towards election in mid-December. But there is no clear follow through buying. Swiss Franc and...
After EU’s approval of the request to extend Article 50 for another three months (January 31, 2020), the UK parliament passed a bill calling for early elections on December 12. The market remained cautious about these moves with both sterling and euro moving in narrow ranges. The best outcome...
Australian Dollar remains the strongest one for today as boosted by optimism over US-China trade deal. But the markets are relatively mixed elsewhere. Yen couldn't decide what to do as risk appetite fades in European session, while US stocks also open mildly lower. European majors are generally soft on...
Australian and New Zealand Dollar rise broadly on optimism that US and China are "ahead of schedule" in completing the phase one trade deal. Dollar and Canadian are not too far away but buying is relatively refrained ahead of Fed and BoC rate announcement. On the other hand, European...
Swiss Franc and Yen weaken broadly again today as risk appetite returns to markets. In particular, US stocks are set to challenge record high, on trade optimism, as well as expectation of another Fed rate cut. European stocks, except FTSE, also rise mildly as EU agreed on a three-month...
Dollar trades mildly higher in quiet trading today so far, but Euro is a bit stronger. On the other hand, Sterling and Canadian Dollar are the relatively weaker ones. All these four currencies have something to look at this week, which might trigger strong moves. In particular, the greenback...
The market has almost fully priced in a rate cut of -25 bps in the FOMC meeting this week. Some in the market are speculating that the Fed would change the forward guidance. Some expect the central bank to signal a temporary end to rate cut in October. This...
Although the Fed and ECB have resumed monetary easing, BOC is not expected to follow suit. This is also the key reason for the recent strength in Canadian dollar. At the meeting next week, we expect the central bank to leave the policy rate unchanged at 1.75%.
Upside surprise in...
As suggested in the CFTC Commitments of Traders report in the week ended October 22, NET LENGTH in USD Index declined -6 226 contracts to 31 210. Speculative long positions fell -3 455 contracts and short positions added +2771 contracts. USD fell across the board as market turned trade...
According to the CFTC Commitments of Traders report for the week ended October 22, NET LENGTH for crude oil futures soared +9 288 contracts to 366 172 for the week. Speculative long positions jumped +12 545 contracts while shorts added +3 257 contracts. For refined oil products, NET LENGTH...
Canadian and US Dollars ended last week as the strongest ones. It now appears that US and China are on track to complete the easier phase 1 trade deal in November. Optimism lifted stocks as well as oil prices, which indirectly helped the Loonie too. Also, recent developments in...
Trading in the forex markets remain subdued ahead of weekly close. Euro is generally softer as data showed German business and consumer sentiments remained weak. Also, professional forecasters downgraded Eurozone inflation and growth projections in latest survey. For the week, Canadian Dollar remains the strongest one, followed by Dollar...
Consolidations continue generally in the forex markets today, with the exception of notable strength in Canadian Dollar. The Loonie is so far the strongest one follow the week as helped by rebound in oil price. Dollar is currently following as second strongest but there is no committed follow through...
President Mario Draghi’s last ECB meeting came in without surprise. He sent a cautiously dovish message about Eurozone’s economy and reiterated the importance of the stimulus package announced last month. The new leadership will likely maintain the existing policy stance unless there are dramatic changes in the domestic and...
The forex markets remain generally steady in early US session. ECB rate decision triggered little reactions as widely expected. Also, markets was also indifferent to poor PMIs from Eurozone. Meanwhile, weak durable goods orders report from US was shrugged off. And positive news regarding US-China trade deal was ignored....