Forex Markets Await Direction with Key US Economic Data on the Horizon
In a typical Monday’s Asian trading session, the forex markets remained relatively subdued, with only modest movements observed. A mild sense of risk aversion was noted in the stock markets of Hong Kong and China, which exerted slight downward pressure on commodity currencies. This sentiment was largely driven by...
Rate Cut Hopes Eclipse Recession Concerns, Dollar Tracks Rising Yields
In the final week of August, financial markets delivered unexpected developments that caught many by surprise. Investor sentiment decisively shifted towards a risk-on approach, propelling major indices like DOW and DAX to new record highs. This optimism was largely driven by expectations of forthcoming monetary easing from key central...
Dollar Edges Up in Quiet Month-End Trading, Canada GDP and Eurozone CPI Shrugged Off
Dollar is showing mild strength in early US session despite slightly disappointing PCE inflation data. While the data reinforces the likelihood of a 25bps rate cut by the Fed in September, it does little to support the case for a more aggressive 50bps cut.
The greenback is getting a slightly...
Resilient Risk Sentiment Limits Dollar Rebound, Eurozone and US Inflation Reports Take Center Stage
Trading activity was notably subdued in the final Asian session of the week and August, but with a busy economic calendar ahead, volatility could pick up soon. Euro remains the weakest performer of the week, as the broad slowdown in inflation, reflected in data from Germany, Spain, Belgium, and...
Euro Sinks as Weak Inflation Data Bolsters Case for Faster ECB Rate Cuts
Euro fell notably in European session today, as inflation data from both Germany and Spain significantly underperformed expectations. The rapid deceleration in price pressures strengthens the argument for a September rate cut by ECB. With inflation slowing faster than anticipated, there is growing speculation that ECB could have the...
Kiwi Rallies on Strong Confidence Data, Nvidia’s Underwhelming Forecast Weighs on NASDAQ
New Zealand Dollar made significant gains in Asian session today, boosted by unexpectedly strong business confidence data from New Zealand. In retrospect, RBNZ's unexpected rate cut just two weeks ago now appears to be a timely and strategic move, welcomed by Kiwi traders. By initiating the policy easing cycle...
Euro Under Siege as Dollar Stages Recovery
Euro is facing significant selling pressure today, with its recent decline gaining momentum. Fresh data from ECB paints a grim picture: bank lending growth in July was notably sluggish, failing to meet even historical averages. Meanwhile, money growth, which had shown signs of improvement in prior months, remained stagnant...
Aussie Rises on Inflation Beat, Ethereum Takes a Sharp Dive
Australian Dollar rose broadly in the Asian session following the release of stronger-than-expected inflation data. The slight slowdown in inflation wasn't as pronounced as markets had anticipated, reinforcing RBA's stance that it is not yet ready to cut interest rates. While the data does reduce the urgency for another...
Euro Slips as German Recession Fears Mount, Aussie Awaits CPI
Euro weakened broadly today, weighed down by growing recession concerns in Germany. The Eurozone's largest economy confirmed -0.1% contraction in GDP in Q2. Consumer sentiment showing deeper-than-expected deterioration, particularly in economic expectations. This decline follows weak Ifo business climate released yesterday. The string of negative data points suggests that...
Swiss Franc and Loonie Lead as Geopolitical Tensions Keep Forex Markets in Check
Trading in the forex markets continued to be relatively subdued, as the initial buzz surrounding a Fed rate cut in September is quickly dissipating. Although there is still some speculation about the possibility of a more aggressive 50bps cut to kick off the easing cycle, the repeated reassurances from...
Libya and Middle East Tensions Drive Oil Surge
Geopolitical events dominate market movements today amid a sparse economic calendar. Oil prices have surged following an announcement from Libya’s eastern government in Benghazi that oil production and exports would be halted. This move stems from a dispute with the internationally recognized western government in Tripoli over central bank...
Caution Creeps Back as Markets Eye Crucial Inflation Data in the Week
Traders appear to be stepping back from last Friday's risk-on rally, showing more caution in the Asian session today. The mood in major indices is mixed; with Nikkei trading down by more than -1%, while HSI is showing gain of about 1%. This cautious sentiment is mirrored in the...
Dollar at Risk of Resuming Medium-Term Downtrend as Fed Confirms Rate Cuts Ahead
Fed Chair Jerome Powell's highly anticipated speech at Jackson Hole didn't disappoint market participants, as he clearly signaled that the time for easing monetary policy has arrived. This declaration provided a notable boost to US stock markets on Friday, with major indexes ending the week on a positive note....
Calm Before the Speech: Markets Steady Ahead of Powell
Trading in the forex markets remains muted as investors hold their positions ahead of Fed Chair Jerome Powell's highly anticipated speech at Jackson Hole. Market participants are keenly focused on any signals regarding the Fed's plans for monetary policy easing, beyond the expected rate cut in September.
Currently, Fed fund...
Buckle Up: Markets Brace for Fed Powell’s Jackson Hole Remarks
In the calm before what could be a stormy session, forex markets remained exceptionally quiet during Asian trading. Dollar managed a slight recovery overnight, bolstered by pullback in US equities, but the upward momentum has been notably weak. Traders are now laser-focused on Fed Chair Jerome Powell’s speech at...
Sterling Surges on Strong PMI Data, BoE Likely to Hold Off on Rate Cuts Amid Resilient Growth
Sterling surged broadly today, driven by stronger-than-expected PMI data indicating that the UK economy is on track for reasonably solid growth in the third quarter. This positive economic outlook comes at a time when inflationary pressures are easing, which would typically open the door for further rate cuts by...
Dollar Continues to Slide as FOMC Minutes Confirm September Rate Cut Likely
Dollar extended its broad decline overnight following release of FOMC minutes, which confirmed that a vast majority of Fed members see a rate cut in September as appropriate. However, the market reaction was relatively muted, as this outcome has already been largely priced in by traders. The real uncertainty...
Dollar Continues to Struggle Amid Market Lull
The forex markets are experiencing a lull today, with little movement in the absence of significant economic releases during European and early US sessions. The much-discussed non-farm payroll revision and the release of FOMC minutes later today are unlikely to spark significant volatility. Instead, markets are likely to remain...
Dollar Stays Pressured, NFP Revisions and FOMC Minutes Unlikely Change Its Course
Dollar remains under broad-based selling pressure, with markets likely to keep this trend until Fed Chair Jerome Powell delivers his speech at the Jackson Hole Symposium on Friday. While today's events, including the non-farm payroll revision and the release of FOMC minutes, warrant some attention, they are unlikely to...
Canadian Dollar Slips as CPI Solidifies Case for BoC Sep Cut, Gold Marches On
Canadian Dollar has come under broad pressure in the early US session following the release of the latest inflation data, which showed a further slowdown in inflation, with headline CPI fell to a 40-month low and core measures also easing. This set of data has strengthened market’s expectation that...