Sterling Upside Attempt, Yen Maintains Gain in Mixed Markets
The forex markets has been rather quiet for most of the day. But activity seems to pick up in early US session. Yen remains generally firm despite strong global risk appetite. But it's losing ground to Sterling as the the latter attempts for a rally. Euro is currently trading...
Powell Signals He Would be More Cautious in Face of Uncertainty
Weaker USD, lower Treasury yields, higher equities… Market reactions showed that Fed’s chair Jerome Powell’s speech at Jackson Hole symposium was interpreted as “dovish".
Discussing about “Monetary Policy in a Changing Economy”, Powell revealed the challenges of navigating the stars – u*, the natural rate of unemployment, r*, the neutral...
Yen Rises Despite Strong Risk Appetite, Dollar Regains Some Ground
Risk appetite was rather strong in Asian session today. Nikkei closed up 0.88% at 22799.64. At the time of writing, Hong Kong HSI is up 2.05%, China Shanghai SSE is up 1.70% and Singapore Strait Times is up 0.63%. The rally in stocks is partly due to record close...
CFTC Commitments of Traders – Bets in USD Might Drop Next Week as Powell Dovish at Jackson Hole
As suggested in the CFTC Commitments of Traders report in the week ended August 21, NET LENGTH of USD index rose +2 089 contracts for 34 122 contracts for the week. However, this was driven by the decline in speculative short positions offsetting that of longs. during the reporting...
CFTC Commitments of Traders : Bearish over Commodities
Traders have turned bearish on the commodity market, amidst concerns over deceleration in Chinese economic growth and US oil production. According to the CFTC Commitments of Traders report for the week ended August 21, traders trimmed speculative long positions of crude oil futures by -13 183 contracts. Meanwhile, they increased...
Dollar in Medium Term Correction after Plunging on Trump and Fed Powell
Yen ended the week broadly lower, as the worst performing one, on return of risk appetite. That came with S&P 500 and NASDAQ closing at record highs. Dollar ended as the second weakest one as it's firstly talked down by Trump. Secondly, markets took Fed Chair Jerome Powell's speech...
Mixed Fedspeaks and Durables, Dollar Recovery Lost Steam as Powell Eyed
Dollar trades broadly lower today, except versus Yen as it's recovery quickly lost steam. Comments from Fed officials are mixed while markets are awaiting Fed chair Jerome Powell's speech at Jackson Hole symposium at 1400GMT. Durable goods orders report is mixed too, with weak headline numbers, but solid details....
Australian Dollar Higher on ScoMo Win, Powell in Jackson Hole Watched
Australia Dollar recovers broadly today as markets cheered Scott Morrison's win in the Liberal Party's leadership challenge. But upside is so far limited. New Zealand Dollar is trading as the second strongest one for today so far, followed by Dollar. On the other hand, Yen is under broad based...
Dollar Rebound in Progress But Momentum Weak, Aussie Selloff Extends
Dollar is still trading as the strongest for today even though the rebound looks a bit unconvincing. In particular, the greenback is effectively just range bound against against European majors. And in fact, it's taking turn to be the strongest with Swiss Franc. Meanwhile, Australian Dollar remains the weakest...
Australian Dollar Plunges on Political Turmoil, Dollar Higher as Tariffs on China Kicks In
Political turmoil in Australia takes the headline over from the US as the Aussie dives broadly today. While two former aides of Trump are likely going to jail soon, special prosecutor Robert Mueller's investigation will take long to complete. However, Australia could have the seventh Prime Minister in a...
FOMC to Continue Rate Hike Despite Trump’s Criticism
The minutes for the July FOMC meeting affirmed that the policy rate is prone to increase in September, notwithstanding Trump’s pressure. The members remained upbeat over the economic growth outlook but warned on downside risk due to intensifying trade tensions. They acknowledged the need to amend the language to...
Dollar Selloff Intensifies on Trump, Euro and Swiss Franc Surge
Dollar suffers fresh selling entering into US session, in particular against Euro and Swiss Franc. Two former aides of Trump, campaign manager Paul Manafort and personal lawyer Michael Cohen are found guilty on a range of charges. More importantly, Cohen's attorney Lanny Davis said in a statement that Cohen...
Sterling Lifted by Positive Brexit Meeting, Yen Weak as S&P 500 Hit Record
Dollar and Yen remains the weakest one for the week. While sell-off slows a little bit in Asian session, there is no sign of bottoming yet. Dollar is apparently still weighed down by Trump's comments on Fed policy. On the other hand, Yen is pressured by solid risk appetite....
Dollar Stabilizes Mildly as Selling Focus Turns to Yen
Dollar and Yen are pressured by all other major currencies throughout the day. The greenback continues to be weighed down by Trump's attack on Fed, and Jerome Powell personally, regarding rate hikes. Nonetheless, the greenback is showing a little sign of stabilization and sell focus turns to Yen. At...
RBA Too Early to be Confident over Consumer Spending
The RBA minutes of the August meeting contained little news, in particular after release of the quarterly Statement of Monetary Policy two weeks ago and Governor Philip Lowe’s parliamentary testimony last week. The minutes reiterated confidence over domestic economic development, hinging on the robust employment market. We also notice...
Jackson Hole Symposium Preview: Two Questions on Fed’s Monetary Policy
While it is not a practice for Fed chairs to offer hints on the monetary policy outlook at the annual Jackson Hole symposium, their speeches at the event have always caught market attentions and sometimes move the market. At the upcoming meeting on August 23-28, Fed Chair Jerome Powell...
Dollar Sold Off on Trump’s Personal Attack on Fed Chair Powell
Dollar weakens broadly overnight on Trump's attack on Fed's policy. It started after Bloomberg reported that Trump lamented Fed chair Jerome Powell for not being the "cheap-money" chair he expected. Then Trump reiterated his comments that he's "not thrilled" with interest rate hikes in Reuters interview. But this time,...
Sterling Mildly Higher But Markets Stay in Overall Consolidative Mode
The forex markets are staying in quiet consolidative mode today. Sterling trades generally higher and is the strongest one for the time of writing. But the momentum is nothing more than that we see inside corrective trading. That is, rather weak, without follow through. Swiss Franc follows as the...
Markets Range Bound; US-China Trade Talk, Brexit and German-Italian Spread to Watch
The forex markets are rather quiet today with major pairs and crosses bounded in Friday's range. It's back to business as usual for a Monday, without any surprise. For now, Swiss Franc is trading as the strongest, followed by Dollar. New Zealand Dollar, Euro and Australian Dollar are the...
CFTC Commitments of Traders: EUR Turned to NET SHORT Amidst Contagion Fear
As suggested in the CFTC Commitments of Traders report in the week ended August 14, NET LENGTH of USD index increased further, by +1 931 contracts, to 30 102 for the week. This was driven by the fact that the increase in speculative long positions doubled that of shorts.
EUR...