According to the CFTC Commitments of Traders report for the week ended March 26, NET LENGTH for crude oil futures jumped +33 873 contracts to 448 619 for the week. Speculative long positions rose +25 989 contracts while shorts plunged -7 884. Crude oil prices strengthened during the week....
Intensifying recession fear was the main theme in the markets in March, alongside never-ending Brexit and trade tensions. With downside risks to growth starting to materialize, major global central banks started their dovish turns. Most notably, Fed now forecasts no rate hike this year. ECB will keep interest rates...
Canadian Dollar jumps sharply in early US session after stronger than expected GDP data. At least, the three month-rolling average remained in expansion despite the contraction in December and November. Additionally, WTI crude oil surged through recent resistance to resume larger up trend to as high as 60.72. For...
The lack of momentum in economic activities would soon dent RBA's hope of higher household consumption (and eventually higher inflation), as a result of further decline in the unemployment rate. We expect the central bank to turn more cautious at next week's meeting. Although the members agreed in March...
Yen is under some mild selling pressure today as China stocks lead Asian markets higher. While US 10-year yield failed to sustain above 2.4 handle overnight, it looks like recent decline has stabilized some what. And some more recovery in yield could be seen before quarter end. US-China trade...
Dollar rises broadly in early US session with help from rebound in treasury yields. 10-year yield is now trying to regain 2.4 handle. Poor Q4 GDP is ignored while traders could be hopeful on some progress in US-China trade talks in Beijing. The development drags down the Japanese to...
The Brexit drama continues! What has recently happened has offered little help to clear the mist of the matter. Rather, Britons, as well as global investors, have become more uncertain about the outlook. On Wednesday, the UK parliament has rejected ALL eight Brexit options in the “indicative votes”. Recall...
The forex markets are relatively quiet as quarter end approaches. Sterling remains stuck in range as Brexit stalemate continues. The UK Parliament continued to tell the world what they don't want regarding Brexit, but not they really want. Meanwhile, US-China trade talks are resuming in Beijing today. There are...
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks climbed +0.06 mmb to 1221.91 mmb in the week ended March 22. Crude oil inventory increased +2.8 mmb to 442.28 mmb (consensus: -1.2 mmb). Inventories rose in 3 out...
Indicative votes on Brexit alternatives in the UK House of Commons will catch most attention ahead. Debate is due to start by 1500GMT. We'll see what alternative Brexit path could gain majority in the Parliament. House of Commons Speaker John Bercow will select which of the proposals will be...
Selloff in New Zealand and Australian Dollar is the main theme in Asian session today. Kiwi plummets after RBNZ stands pat and indicates that the next move is a cut. After that, a full RBZN cut in priced in November but there are speculations on as early as a...
As we expected, RBNZ has turned more dovish in March. A more pessimistic view about the domestic and global economic outlook has led members to adjust their forward guidance on the monetary policy stance. The members now expect to cut the policy rate in the next move. The market...
The forex markets are staying in consolidative mode today. Sterling rises notably as some Brexiteers are finally agreeing that Prime Minister Theresa May's deal is better than no Brexit. At least, there is a chance for future governments to adjust the relationship with EU further. But in any case,...
The forex markets are relatively mixed this week, in particular Sterling. Pound is staying inside familiar range even though the Parliament finally seized control over Brexit from the government. Focus will turn to Wednesday's indicative votes but it's uncertain whether the government will follow the results. Prime Minister May...
RBNZ is expected to leave the cash rate at 1.75% in March. However, as both domestic and global economic slowdown has intensified since the February meeting, we doubt if the central bank could maintain the guidance that next rate change could be “up or down”. Indeed, we expect the...
Market sentiments generally stabilized today after initial selloff in Asia. While major European indices are still in red, losses are so far very limited. German 10-year bund yield even managed to turn positive briefly. Better than expected German Ifo Business Climate gave sentiment a mild lift. Yet, the picture...
Risk aversion dominates in the Asian markets today as recession fears spread. But the currency markets are steady though. Major pairs and crosses are bounded inside Friday's range at the time of writing, with mild weakest in Sterling and Swiss Franc. After last week's poor Germany PMI manufacturing, investors...
After the much more dovish than expected Fed economic projections and shockingly poor Eurozone manufacturing data, it looks like major world economies are at the brink recessions. German 10-year bund yield turned negative for the first time since 2016, and it was as high as 0.12 during the week....
As suggested in the CFTC Commitments of Traders report in the week ended March 19, NET LENGTH in USD Index fell as speculative long positions dropped while shorts gained. NET LENGTH for USD index declined -9 139 contracts, to 25 935. All major currencies were in in NET SHORT...
According to the CFTC Commitments of Traders report for the week ended March 19, NET LENGTH for crude oil futures jumped +52 481 contracts to 414 746 for the week. Speculative long positions rose +34 394 contracts while shorts plunged-18 087. Crude oil prices strengthened during the week on...