Dollar Rebound Lacks Conviction, Except Versus Aussie and Possibly Yen
Dollar jumps broadly overnight but it's rally is starting to lose steam again in Asian session. Instead, while Yen remains the weakest one for the week, it's starting to regain some strength. So far, the Japanese is not benefiting from risk aversion this week. Even though stocks attempted to...
Risk On Again as Stocks Futures Rebound on Facebook, Yen and Swiss Franc Dive
The pattern of risk on/risk off continues today. After opening lower, European indices pare back much losses with FTSE now back in black at the time of writing. US futures also point to slightly higher open. Tech stocks, who were the main reason of yesterday's selloff, recover mildly. Facebook's...
US- China Trade Tensions: Trump’s Soap Opera to Get Better Deal
Over the past months, US trade policy has been a major cause of the wax and wane of the financial markets. The White House has triggered a number of investigations under the rarely used 1972 US trade law since Trump took office. All investigations have resulted in tariff imposition,...
Euro Stays Strong after Volatility in Thin Holiday Markets
There was some volatility seen yesterday in the forex markets. But as dusts settled, Euro is staying as the strongest one for the week, followed by New Zealand Dollar and Sterling. On the other hand, Yen and Dollar are trading as the weakest one, followed not too far away...
Dollar Rebounds as Quarter End Position Squaring Starts, Stocks Lifted by Receding Trade War Fear
After being pressured initially, Dollar staged a strong come back European session. The greenback is now trading as the strongest one for day, followed by Canadian Dollar and then Yen. On the other hand, Sterling and Euro are suffering broad based selling together with Aussie. There is no apparent...
EUR/USD to Look into Confidence Indicators for Guidance, as Risk Aversion Eased
The financial markets responded positively to news that US and China are back on the table for trade negotiation. At least for now, the fear of further escalation in tension is eased. DOW ended yesterday up 669.40 pts or 2.84% at 2420.60. S&P 500 gained 70.29 pts or 2.72%...
Yen Lower as Trade War Fears Recede, Euro and Sterling Surge
Risk sentiments stabilized as markets reacted positively to the possibility of a trade deal between US and China. Major European indices are trading higher even though gains are only at 0.35-0.55% in FTSE, CAC and DAX only, at the time of writing. US futures also point to triple digit...
US Treasury Mnuchin in Trade Talk with China, But No One is Cheering Yet
The financial markets opened the week rather quietly. Nikkei and KOSPI opened lower and turned black as the session went on. But other major Asian indices stayed slightly in red. US is apparent in talk with China on trade agreement. But no one in the markets is cheering for...
Global Stock Market Crashed, Dollar Tumbled after Episode 1 of US-China Trade War
Global stock markets suffered steep selloff last week as US President Donald Trump has finally declare the start of trade war with China. Dollar was under broad based pressure with the development, but it was only the second weakest one. Australian Dollar suffered most for it's close trade link...
Canadian Dollar Lifted by CPI, Markets Stabilizing after Panic Selloff
After steep selloff in the Asian markets, sentiments stabilized mildly in European markets. At the time of writing, DAX is trading down -1.45%, CAC down -1.2 and FTSE down only -0.25%. US futures also point to a flat open, and stocks may recover from yesterday's panic selloff. In the...
Global Markets Crash, Yen Surge as US-China Trade War Starts
US stocks tumbled sharply in the final hour of trading overnight, taking out key support levels in the wake of the start of US-China trade war. DOW closed sharply lower by -724.42 pts or -2.93% at 23957.89 overnight as fear of trade war intensified. S&P 500 was down -68.24...
Yen Steals the Show on Trade War Worries, Sterling Reversed after Brief BoE Spike
Sterling attempts to rally after BoE rate decisions but failed to sustain gain. On the other hand, Yen is quietly stealing the show on risk aversion. Investors are worried that the world is finally entering into the phase of trade war with US President Donald Trump's scheduled announce of...
BOE Voted 7-2 to Leave Bank Rate Unchanged at 0.50%
BOE voted 7-2 to leave the Bank rate at 0.50%. The members voted unanimously to leave to asset purchase program unchanged at 435B pound. The members were generally positive over the economic outlook, noting that "recent data releases are broadly consistent with the MPC's view of the medium-term outlook...
Dollar Broadly Pressured after FOMC, Sterling Strong ahead of BoE
Dollar stays broadly pressured today as post FOMC selloff extends. While Fed delivered the widely anticipated rate hike, it maintained the forecast of a total of three hikes in 2018 only, not four. Aussie is the only failing to join the party against Dollar today after weaker than expected...
FOMC Projects Two More Rate Hikes This Year, Followed By Three In 2019
FOMC's rate hike of +25 bps is not news. What caught market attention the most was the median dot plot (which continued to project 3 rate hikes in 2018) and the upgrades in the economic projections. US dollar plunged from almost a three-week highe after the announcement. The message...
USD and NZD Weak ahead of FOMC and RBNZ, Sterling lifted by Job Data
Sterling is staying in the spotlight today as the set of job and wage data boosts the chance of a May BoE hike. The central bank's announce tomorrow is now rather important as some hawks could come back flexing their muscles. Similar strong for today is Canadian Dollar, riding...
UK And EU Reached Transition Deal, Erasing Key Uncertainty Of BOE’s Rate Hike Path
Despite initial rally following the announcement of a Brexit transition deal, British pound has retraced much of its gains. Both UK and EU officials have hailed the agreement. While UK's Brexit negotiator Davis David noted that the deal contains 'a large part of what will make up an international...
Dollar Turns Soft as Markets Await FOMC Hike, Sterling Looks into Job Data
Dollar trades broadly softer in Asian session today as yesterday's rebound attempt lost steam. Traders are also turning more cautious ahead of FOMC rate decision. While Fed is widely expected to hike, the main question remains on whether there will be three or four hikes this year. Also, Jerome...
Euro Reverses as Germany Outlook Worsened Considerably, Sterling Pare Gains after CPI Miss
Euro and Sterling trade notably lower today as economic data missed expectation. Sterling remains relatively firm and stays as the strongest major currency for the week. The CPI miss was just 0.1% yoy, and Brexit transition deal should still give BoE policy makers a confidence boost. Euro, on the...
RBA Minutes Reiterated The Impacts Of Low Wage Growth On Inflation
Aussie remains under pressure although the RBA minutes contained little surprise. The minutes signaled that policymakers were encouraged by recent economic growth. However, subdued wage growth and elevated household debt have suggested that policymakers would keep the powder dry. Meanwhile, the slowdown in the housing market has diminished the...