NFP Boosts Investor Sentiment, Pressures Dollar and Yields
Investors react favorably to the much-anticipated US Non-Farm Payroll data, sending stock futures soaring while Treasury yields and Dollar weaken. The latest numbers point to a more relaxed labor market, yet with decent job growth, which is what Fed would love to see. Additionally, the slowdown in wage growth...
Forex Markets Awaiting US NFP Data, Bitcoin Reverses Gains
Forex markets are showing unremarkable activity in today's Asian session, with major currency pairs and crosses largely contained within yesterday's trading range. The mood this week has been one of indecision, with sporadic movements failing to evolve into sustained trends. Despite China's intervention to bolster Yuan, the impact was...
Euro Slips after CPI and ECB Minutes, Dollar Shrugs PCE
Euro falls broadly today together with other European majors. Some might point to the expected slowdown in Eurozone core inflation in August as a factor. But indeed headline inflation was steady from the prior month, above expectations. Comments from ECB officials were also hawkish. Traders are probably just squaring...
Dollar Stabilizes Amid Lull in Asia; Eurozone CPI and US PCE in Focus
Markets took a breather in today's Asian trading session after Dollar experienced a significant selloff overnight. For now, the greenback seems to have found some footing, as market participants shift their focus to the release of high-impact data—Eurozone's CPI flash and US PCE inflation—slated for later today. Eurozone inflation...
Dollar Slumps on ADP Miss, Gold Extending Rally
Dollar is facing accelerated selloff following the release of disappointing ADP private employment data, which showed deceleration in both job and pay growth. Although the employment numbers were by no means dismal, the cooling job market is being perceived as a positive development by Fed and market participants. This...
Dollar Rally Faltered, With Focus Turning to ADP Jobs
Dollar's attempted rally quickly reversed overnight, following disappointing consumer confidence data. Interestingly, equities gained on what some market participants are calling a "bad news is good news" factor. The logic here is that Fed is now less likely to raise interest rates again this year, thereby giving stocks a...
USD/JPY Hits Year-High in Subdued Markets
In a relatively uneventful trading day, the notable standout is the rally in the USD/JPY currency pair, which has now reached its highest level this year. The bullish momentum for Dollar against Yen raises questions about whether traders are positioning themselves ahead of crucial employment and inflation data set...
Euro Underperforms Amid Weak German Consumer Sentiment; Gold Gains Momentum
Euro is trading lower across the board today, additionally dragged down by weaker-than-expected consumer sentiment data out of Germany. This latest indicator has added fuel to concerns that Eurozone's largest economy may become a drag on the broader region, heightening risk of a looming recession. Meanwhile, Dollar and Swiss...
Yen Staying Weak in Muted Trading, Chinese Yuan Softens
Trading in the forex market today saw a tempered tone, with most major currencies trading in a tight range due to a sparse economic calendar. An early uplift in market sentiment was observed, largely attributed to China's strategic moves aimed at boosting investor confidence. This positive wave continued into...
Stocks Surge on China’s Investor “Friendly” Measures; Markets Brace for Important Data This Week
Asian equities witnessed an upswing today, buoyed by China's announcement of several initiatives aimed at enticing investors back into the market. Among these measures, the decision to trim the stamp duty on stock transactions and a more gradual roll-out of initial public offerings captured investors' attention. Adding to the...
Dollar Stands Tall, Euro and Sterling Down on Recession Worries
Dollar clinched the title of the week's best performing currency, even though there was just muted impact from Fed Chair Jerome Powell's remarks at Jackson Hole. While Powell's renewed commitment to combating inflation prompted traders to elevate their expectations for another rate hike within the year, broader market reactions,...
Market Treads Cautiously Ahead of Powell and Lagarde’s Speeches
As the financial world gears up for the much-anticipated remarks from Fed Chair Jerome Powell and ECB President Christine Lagarde, market participants are treading with caution. Dollar has started to retreat, shedding some of its recent impressive gains. Simultaneously, Euro grapples to find solid ground elsewhere amidst a mixed...
Dollar Soars Amidst Market Jitters; Fed Powell and ECB Lagarde Remarks to Shape Market Outlook
A shift in market sentiment rattled investors as the optimism spurred by Nvidia was short-lived. DOW experienced its most severe daily slump since March overnight, while S&P 500 and NASDAQ posted their largest one-day drops since early August. This change in market dynamics played into the hands of Dollar,...
Dollar Resurgence Amid Rising Treasury Yields
Dollar exhibits renewed vigor in the early US trading hours, marking broad-based gains. While today's data showcased robust initial jobless claims and a mixed bag for durable goods orders, these don't seem to be the primary catalysts fueling the Dollar's ascent. A more plausible driver is the resurgence of...
Forex Markets Await Jackson Hole Cues; Dollar’s Position Remains Uncertain
The foreign exchange are mostly stable today, with major currency pairs and crosses staying confined within the boundaries set yesterday. Both Sterling and Euro have had a lackluster week, emerging as the weakest performers. US Dollar, while subdued, still fares better, positioned ahead of Canadian Dollar as the third...
PMI Woes Shoot Euro and Sterling Down; Yen and Dollar Seize the Opportunity
Sterling and Euro faced a sharp drop today after alarming PMI readings unveiled an unanticipated rapid decline in the service sectors of both the UK and Eurozone. The days of service-driven economic growth seem to be in the rearview mirror, with signs indicating probable contractions in the third quarter...
Euro Under Pressure Ahead of PMIs from EZ, UK and US
Euro faces headwinds this week, emerging as one of the more subdued performers, with all eyes set on today's Eurozone PMI data. Its trajectory, when compared to Yen and Aussie, remains uncertain, as both showed minimal response to their respective PMI releases. Conversely, Dollar's movement, in anticipation of the...
Euro Lags in Muted Markets; Eyes on Upcoming PMI Data
Euro is currently the weakest major currency in very quiet markets today, with little of note from the economic calendar. Meanwhile, other European majors are soft too, with Sterling just performing slightly better than Swiss Franc. Meanwhile, the rebound in metal prices is helping Aussie recover, while Kiwi is...
Yen Selloff Slows, But Remains Vulnerable
Yen's selloff experienced a mild respite during the Asian session, bolstered by a spike in 10-year JGB yield that touched its apex since 2014. However, given the widening yield disparities with both US and European counterparts, the outlook for Yen remains bearish, at least in the foreseeable future. Interestingly,...
Yen Faces Pressure Again Amid Rising Benchmark Yields in Europe and US
Japanese Yen is feeling the heat once again, buckling under the surge in major European and US benchmark yields. Notably, yield on Japan's 10-year JGB did jump, closing 0.655 today. However, this level has acted as a formidable ceiling for a while, even in the wake of BoJ's recent...