HomeAction Insight

Action Insight

Dollar Soars on Sky-High Yields, Gold Plummets

Dollar's strength remains unabated, particularly against its European counterparts and Yen. The greenback rose alongside 10-year yield, which soared past the 4.6% mark overnight, a level unseen in over 15 years. The surging global treasury yields are a clear indicator of the market's expectation for a prolonged period of...

Dollar Rises Further after Durable Goods Orders, Aussie Falters on Evergrande Crisis

Dollar rally shows no signs of stopping in early US session, and the greenback it buoyed slightly by stronger than expected data on durable goods orders. Yet, looming in the background is the potential for the fourth US government shutdown in the last ten years, a scenario that's only...

Dollar Rally Continues With Tailwinds from Risk Aversion

Amid the backdrop of surging treasury yields, Dollar has pressed on, extending its recent rally. The mounting sentiment of risk aversion has provided additional tailwinds for the greenback, especially after the DOW experienced its sharpest decline since March. For now, Yen emerges as the day's runner-up in strength, shadowed...

Dollar Losing Some Momentum Amidst Government Shutdown Concerns

Dollar, although retaining its strength, is witnessing mild deceleration in upside momentum as US session starts. The spotlight now shines on any potential progress within the US Congress to prevent a partial government shutdown looming this Sunday. While the notion of a shutdown isn't unfamiliar in the US, having...

Surging Treasury Yields Propel Dollar to 10-month High, EUR/USD Breaks Key Support

Dollar is being the standout performer this week, bolstered significantly by surging US treasury yields. Dollar index, which gauges the greenback against a basket of six major currencies, reached a high not seen since the previous November, breaking 106 mark. Contributing to the bullish momentum, EUR/USD has plunged through...

Swiss Franc Weakens Amid Rising European Yields; Dollar’s Momentum Uncertain

Swiss Franc weakens broadly today, influenced predominantly by rally in benchmark European yields. Specifically, Germany 10-year yield breached 2.8% mark, reaching an 11-year peak. Euro managed to bounce back against the Australian and New Zealand dollars, which were burdened by concerns surrounding China's property sector. However, Euro's ability to...

Aussie Dips as Evergrande Concerns Resurface; More Global Inflation Data Ahead

Asian stock markets commenced the week with divergent performances. While Japan's Nikkei showed resilience, bouncing back after enduring its most challenging week this year, Hong Kong's stocks weren't as fortunate. The uncertainty surrounding China Evergrande Group's protracted debt restructuring initiative ignited a fresh wave of selling, impacting not just...

Dollar’s Conundrum: Bullish Factors Met with Lackluster Gains

Despite a confluence of favorable conditions that are typically Dollar bullish — a decidedly hawkish Federal Reserve, plummeting stocks, and soaring yields — the greenback's response was unexpectedly tepid last week. While it managed to gain ground against European majors and Yen, it faltered when squared against the robust...

Euro and Pound Feel PMI Squeeze, While Yen’s Descent Continues

Yen languishes as the day's worst performer, with sentiments taking a hit due to BoJ's silence on potential policy tweaks. European majors aren't faring much better, as subpar PMI data from both Eurozone and UK echo the sentiment that further tightening might not be on the cards for ECB...

Yen Down on Silent BoJ; DOW Stares at Key Support in Week’s Finale

In a move that left many market observers bemused, Yen declined in Asian trading session after BoJ opted for continuity, leaving its monetary policy untouched. Notably, the bank refrained from dropping any hints about potential alterations in its policy stance in the foreseeable future. With US 10-year yield surging...

Sterling and Franc Stumble on BoE and SNB; Yen Rises ahead BoJ

The currency markets faced significant shifts today, notably with Sterling and Swiss Franc, which are enduring considerable selloffs. Both BoE and SNB opted to maintain their current interest rates, prompting speculation that these institutions might have peaked in their tightening cycles. However, Australian Dollar bore the brunt of today's...

Hawkish Fed Spurs Dollar and Yield Surge, SNB and BoE Next

Fed's decisively hawkish stance overnight propelled both Dollar and yields upwards, albeit dampening the stock market. Majority of FOMC members maintained projections of another interest rate hike within the year, with a tempered pace of rate cuts anticipated for the forthcoming year. Fed's message resounded in the markets as we...

FOMC Rate Decision Looms, Dollar Softens Slightly

Dollar is slightly softer today as the financial world holds its breath for FOMC rate decision. With the market strongly anticipating a hold, eyes will turn to the dot plot for insights. The pivotal question remains: Will there be hints of another rate hike slated for this year? Furthermore,...

Sterling Takes a Hard Hit Following CPI; FOMC Dot Plot Awaited

Sterling finds itself under tremendous selling pressure following release of lower-than-anticipated headline and core CPI readings from the UK. This development is seen as a favorable turn of events for BoE policymakers, solidifying the anticipation that the rate hike expected to be announced tomorrow may be the last in...

Canadian Dollar Rides High on Inflation Data, Dollar and Euro Struggle

Canadian Dollar's rally gathers additional momentum during early US session, buoyed by data that depicted faster re-acceleration in Canadian inflation than anticipated. It is noteworthy that the surge in headline inflation figure was chiefly influenced by escalating gasoline prices, yet inflation excluding gasoline did not decelerate as BoC would...

Asian Markets Tilt Cautious, Canada CPI Watched

Asian markets manifested mild risk-off sentiments today, with Nikkei weighing down the broader region. As Japanese investors made their way back from an extended holiday weekend, notable sell-off in chip stocks took place. This reaction was prompted by reports that Taiwan's premier chipmaker, TSMC, had requested its major vendors...

Markets Steady as Traders Await Insights from RBA’s Meeting Minutes

In today's rather subdued trading sessions, most of the movements in the financial markets are limited. European indexes are somewhat in red, albeit with contained losses for the time being. Meanwhile, yields in US and Europe have experienced a minor increase. In the currency sphere, Sterling is mildly weaker,...

Gold Pressing Near Term Resistance, Central Bank Meetings and Key Data Awaited

Today's Asian financial markets have shown signs of calmness, partly due to holiday in Japan that has likely tempered trading activities. Dollar and Euro were mildly softer, while Aussie, Kiwi, and Yen exhibited slight strength. However, the fluctuations were confined within the ranges observed last Friday, pointing to the...

Rising Commodity Currencies, Mixed Dollar Fortunes, Crucial Decisions Looming on the Horizon

Commodity currencies were the biggest winners last week as the global tightening cycle draw closer to a prolonged pause. There was some optimism that China's economy is moving past the worst with improving economic data. The change in sentiment also lift oil prices, which was already lifted by tight...

Yen Hits Year Low on Yields, Euro Shows Signs of Stabilization

Japanese Yen registered notable slump today, recording a new low for the year against Dollar, a move driven largely by ascending benchmark yields in the US and European markets. Meanwhile, sentiment in risk markets appears to be on the upswing, partly propelled by encouraging economic data emerging from China,...