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,...
Europeans Lag as Commodity Currencies Ride the Wave of Optimism
Australian Dollar advanced during Asian session, bolstered by stronger than anticipated data emanating from China and the injection of CNY 191B of fresh liquidity into the banking system by PBoC. The injection, which involved CNY 34B through 14-day reverse repos at a reduced rate of 1.95%, down from the...
Euro Stumbles on Dovish ECB Hike, Dollar Rides on Strong Data
In a twist of events today, Euro takes a considerable hit following ECB's dovish rate hike which communicated a possibly peak in the tightening cycle. The downgrading of core CPI and GDP growth forecasts for the coming years - 2024 and 2025 - further aggravates the descent. This bearish...
Markets Juggle Mixed Signals as AUD Rises and ECB Decision Looms
Australian Dollar rises broadly today, as lifted by stronger than expected headline employment data. But the details are less impressive, as the vast majority of job growth were part-time, while hours worked decline. That's nonetheless welcome news for RBA, as the job markets while starting to cool, appeared to...
Dollar Indecisive after CPI, Sterling Down But Not Out after Poor GDP
Dollar attempts to rally in early US session after modestly stronger than expected US consumer inflation data. But there is no clear follow through buying. Headline CPI's bounce back to a 14-month high was slightly above expectations. Meanwhile, core CPI's monthly reading also beat market forecasts. Yet, it appears...
Euro Resonates on ECB Whispers; Markets Await US and UK Key Releases
Euro experienced a bounce amidst whispers that ECB forthcoming inflation projections might support an imminent rate hike on Thursday. Nevertheless, this uptick was moderate, as the revelations originated from an anonymous source. Simultaneously, investors worldwide are gearing up for pivotal US CPI data and UK GDP figures set to...
Euro and Sterling Falter Amid Dismal Data; Dollar Finds Buyers, Gold Tumbles
Euro and Sterling stumbled today as they responded to less than impressive economic indicators. Despite a slight uplift in German economic sentiment, the broader picture reflected deteriorating current situation, adding pressure on the common currency. Concurrently, the Pound exhibited a steeper reaction to the shrinking payroll employment coupled with...