Dollar Jumps as Moody’s Bank Rating Cuts Spark Risk Selloff
Dollar is surging broadly in early US session as risk aversion appears to be intensifying slightly. The appears to be a reaction to Moody's cut the credit ratings of a host of small and mid-sized U.S. banks late Monday, and changed its outlook to negative for 11 banks. 10-year...
Yen Down on Japan Wage Data; China Trade Figures Sends Aussie Lower
Today's Asian session witnessed a revitalized forex market, triggered largely by pivotal economic data releases. Japan's weaker-than-anticipated wage growth data placed Yen under notable pressure, reinforcing BoJ's commitment to persist with its ultra-loose monetary policy. Simultaneously, unexpectedly poor trade figures from China exerted downward force on Hong Kong stocks,...
Euro Shrugs Confidence Data, Quiet Markets with Eyes on Yen
Today's financial markets exhibited subdued activity, with few standout movements. Notably, even as Eurozone's investor confidence data outperformed expectations, Euro lagged, moving in tandem with Swiss Franc. On the other hand, Sterling is trading mildly higher, echoing the rise of commodity currencies, while Dollar is steady, devoid of fresh...
Market Awaits Clear Direction Amid Market Lull
As we are now in the traditional summer quiet period, market activities appear largely subdued, a pattern expected to persist into first half of the week. US Dollar is attempting to gain momentum to revive its recent rally, but it's still kept way off last week's peak against other...
Dollar Dominates Amid Bond Market Turbulence; Sterling and Commodity Currencies Lag
Last week ended with Dollar taking center stage as the best performer, driven by significant turbulence in the bond markets that sent long-end yields sharply higher and provided a mid-week uplift. Although the greenback experienced a notable pullback following non-farm payroll report, it still stands poised for potential further...
Dollar Dips Following Non-Farm Payroll Disappointment
Dollar falls broadly in early US session following slightly below-expectation non-farm payroll job growth. However, the downside is currently limited, thanks to stronger-than-expected wage growth. The market behavior seems to suggest that traders are merely lightening their positions ahead of the weekend and CPI data release next week, rather...
Dollar Losing Momentum as Markets Anticipate the Dual-Faced Impacts of NFP
Dollar maintains its position as the week's strongest major currency, although momentum has noticeably started to wane. The release of today's non-farm payroll report is poised to be a critical determinant in whether the greenback can sustain its near-term rally. However, market reactions could be complex, given that robust...
Sterling Suffers as BoE Treads Cautiously with 25bps Rate Hike; Dollar Maintains Weekly Lead
Sterling falls significantly today following BoE's decision to raise interest rates by only 25bps. This cautious, along with Governor Andrew Bailey's clear indication that a 50bps hike was not on the table, has resulted in substantial pressure on the Pound. Meanwhile, currency markets remain mixed elsewhere, with Canadian and...
Dollar Rally Continues on Risk-Off Sentiment and Rising Yields; Markets Eye BoE Rate Decision
Dollar continues to strengthen today, bolstered by prevailing risk-off sentiment that has carried over from US to Asian markets. The surge in benchmark 10-year yields is providing additional support to the greenback, as even Euro has finally conceded a near-term support level against Dollar, further affirming the underlying momentum.
Meanwhile,...
Dollar Getting a Boost from Strong ADP Data and Risk Aversion
Dollar is making an effort to extend its near term rebound in early US session, bolstered by significantly stronger-than-expected ADP private job report. Concurrently, the greenback is finding support from the risk-off mood triggered by Fitch's unexpected downgrade of US sovereign rating, which sent global equities lower. However, Dollar's...
Asian Markets Skittish Following Fitch’s US Rating Downgrade; Commodity Currencies Bear the Brunt
Market sentiment in Asia today leans heavily toward risk aversion, following the unexpected move by Fitch Ratings to downgrade US sovereign rating. Consequently, commodity currencies are grappling with strong sell-offs. New Zealand Dollar is leading the downward spiral, despite strong wage growth reflected Q2's employment data. Australian Dollar, still...
Dollar Rising With Treasury Yields, Aussie Selloff Gains Momentum
Dollar rises broadly today, in the first trading day of August. The greenback is bolstered by mild risk aversion and rallying US yields. Meanwhile, traders are also probably starting to position ahead of the heavy weight data this week. However, the greenback is stuck below last week's high against...
Aussie Slips after RBA But Downside Limited, Dollar Firmer Ahead of ISM Manufacturing
Australian Dollar is trading broadly lower after RBA opted to keep interest rates on hold. However, the currency's losses remain contained was not too much out of expectations. RBA's continued bias towards tightening, albeit arguably less emphatic than before, is currently helping to limit Aussie's downside, keeping it within...
Copper Takes Aussie Higher ahead of RBA
Commodity currencies are trading generally higher today on mildly positive market sentiment. Australian Dollar is the stronger one among them, ahead of RBA's rate decision tomorrow. Opinions on whether RBA would hike by 25bps next month (i.e. August 1 tomorrow) are divided . Major local banks exhibit this split...
Yen Extending Fall, Markets Eye RBA and BoE, US NFP This Week
Yen extended its late last week's slide in Asian session today, a downward trajectory that prevailed despite a notable ascent in 10-year JGB yields above the 0.6% mark. Market watchers seemed to have absorbed BoJ's recent communication effectively — that the added flexibility to its yield curve control doesn't...
Yen Staying Bearish after a Wild Ride; Dollar Index Presses Key Resistance
The global financial markets found themselves in a flurry of volatility in the past week, underpinned by policy decision of three major central banks in North American, Europe, and Asia. Yen and Nikkei had the wildest roller-coaster ride in reaction to BoJ's tweak to their Yield Curve Control. In...
Dollar Down Again on PCE Inflation, Yen Reverses Too
Dollar is reversing much of yesterday's gain as both headline and core PCE price indexes showed more than expected moderation. Meanwhile, Yen is also reversing earlier gains around BoJ policy decisions. On the other hand, European majors are making a notable comeback, with Sterling outperforming Euro and Swiss Franc....
Yen Skyrockets as BoJ Moves a Step Towards Stimulus Exit, Dollar Staying Firm
Yen was already rallying ahead of BoJ policy decision, and managed to maintain most of its advances, despite some post-announcement jitters. Initial reactions saw some gains pared back as the policy appeared largely unchanged on the surface. However, some key alterations, including the central bank's decision to buy 10-year...
Dollar Resurges after Strong GDP Data, Euro Weakens Post ECB Rate Hike
Euro turns weaker after ECB's expected rate hike. Downside momentum is also picking up when ECB President Christine Lagarde indicated that even minor alterations in the statement's phrasing were intentional. ECB has shifted its wording from interest rates "will be brought to" to will be "set" at a sufficiently...
Bullish Sentiment Surfaces in Asia after Fed Hike, ECB and US GDP Awaited
Asian markets are trading in positive mood today, even though US stocks were unmoved by FOMC's rate hike overnight. Fed Chair Jerome Powell was predictably non-committal regarding next policy decision. But investors appear content to go along with the prevailing trend. Meanwhile, this upbeat sentiment is giving a notable...