Global Markets Unfazed by Central Banks’ Moves, Risk-On Sentiment Prevails
Despite policy tightening from ECB and Fed's hawkish hold last week, global markets largely shrugged off the central banks' actions. Investors' sentiment remained buoyant, propelling many global markets to impressive rallies. Germany's DAX index even recorded a new all-time high.
In the forex market, Yen took a significant hit and...
Euro Extending Rally But Sterling Outperforms, Yen and Dollar Continue Decline
Euro's broad based rally continues today as supported by a chorus of hawkish comments from ECB officials. But Sterling is outperforming on anticipation that BoE will continue with tightening next week, and probably more afterwards.
Despite the strong showings by European majors, Australian Dollar still leads the pack for the...
Yen Accelerates Down Again after BoJ, Dollar Staying Weak Too
In the wake of BoJ's decision to hold its monetary policy steady, we have seen an amplified sell-off in Yen, which is not surprising given the ongoing divergence in monetary policy with other major global central banks. The breaking of key levels in some crosses suggests that we might...
Euro Soars as ECB Hikes Rates Amid Upgraded Core Inflation Forecasts
Euro is making notable gains following ECB's decision to increase interest rates by a widely anticipated 25bps. The real kicker, however, is the significant upward revision of core inflation forecasts for both the current and following years, pushing the common currency up across the board. Swiss Franc capitalized on...
Markets Skeptical Despite Fed’s Hawkish Hold; Yen Plunges; ECB Next
Fed clearly delivered a hawkish hold overnight, signaling that two more rate hikes are underway. However, market participants appear skeptical about the Fed's aggressive posture. According to Fed funds futures, markets are still projecting interest rate to peak at 5.25-5.00%, anticipating just one more 25-basis point rate hike in...
Dollar Sell-Off Resumes after PPI; Spotlight Shifts to FOMC Hold
Dollar is facing renewed selling in early US session as data reveals a further slowdown in upstream inflation via PPI. All eyes are now on the much-anticipated FOMC rate decision where a 'hold' is broadly expected. However, the possibility of an upside surprise in both inflation projections and the...
Risk-On Mood Prevails as Fed Decision Looms; EUR/GBP in Spotlight First
The financial markets remain firmly entrenched in a risk-on stance as signs increasingly point towards Fed "skipping" tightening at today's rate decision. As a result, Yen, Swiss Franc, and Dollar are this week's worst performers, exhibiting no clear indications of a resilient bounce. On the other end of the...
Dollar Declines as Headline and Core CPI Slowed; Sterling Soars on Positive Job Data
Dollar falls significantly in early US session, reacting to reports that both headline and core CPI decelerated in May. This development boosts confidence to Fed policymakers to skip tightening at tomorrow's decision. Meanwhile, Canadian Dollar and Yen are following as the next weakest for now.
Contrarily, Sterling is witnessing a...
Risk-On Sentiment Dominates, Euro Jumps as EUR/CHF Takes Off
Financial markets are generally leaning towards a risk-on posture, with significant rise in Asia's Nikkei, following a solid close in the US overnight. However, this momentum will face a series of tests from significant events on the horizon, including today's US CPI data, tomorrow's much-anticipated FOMC rate decision, and...
Markets Mixed ahead of Fed and ECB; Aussie Extending Rally With Eyes on Copper and China
The forex markets are relatively mixed with a near empty economic calendar today. Australian Dollar is extending last week's rally, while Euro and Yen are following as next strongest. On the other hand, Swiss Franc and Sterling are trading as the worst performers. Dollar is currently mixed in the...
RBA and BoC Bombshells Stir Market Waters; Dollar, Euro and Yen Suffered
Last week marked the beginning of an avalanche of central bank surprises, with both RBA and BoC springing unexpected rate hikes on markets. However, the market reactions diverged substantially. Despite a weaker-than-anticipated Australian GDP report and terrible Chinese trade data, Aussie's underlying strength was striking. In contrast, the Loonie's...
Yen Staying Generally Weak, Canadian Shrugs Poor Job Data
Yen remains the worst performer for the day, but selloff appears to have slowed somewhat. Meanwhile, Euro and Swiss Franc are also softening, thanks to selling against Sterling. Canadian Dollar is mixed for now, with muted reaction to worse than expected job data from Canada. While the data doesn't...
Yen Selling Taking Off Again on Dovish BoJ Ueda
While Dollar is trading as the worst performer of the week at the time of writing, Yen's decline looks finally taking off today. BoJ Governor Kazuo Ueda repeated once again the need to maintain current ultra-loose monetary monetary. At the same time, some other major central banks are continuing...
Dollar Down after Poor Jobless Claims, More Downside?
Dollar falls broadly in early US session after much worse than expected jobless claims data. But it's so far still holding largely in range. Market pricing on whether Fed would hike on June 14 continues to flip-flop (at around 30% for a 25bps hike). For the week, Kiwi is...
Currency Markets Hold Steady, AUD and CAD Strong, JPY Eyes Yields
The global forex markets are in a state of relative tranquillity today, as the dust begins to settle following two central bank surprises. With a light economic calendar on the horizon, trading activity is predicted to stay muted. Australian Dollar currently retains its pole position, closely pursued by its...
Yen Softens Amid Rising Treasury Yields, But Loss Limited
Yen is encountering renewed selling pressure, particularly against European majors. This weakness is partly attributed to the rising treasury yields that have dampened enthusiasm for the Japanese currency. However, its losses remain contained for the moment. On the other hand, Australian Dollar is seeking to prolong its short-term rally,...
Aussie Holds Strong Despite Poor China Trade Data, Loonie Awaits BoC
Australian Dollar is staying generally firm in Asian session today, as supported by hawkish comments from RBA Governor Philip Lowe. More tightening could still be underway after yesterday's surprised rate hike. Aussie basically shrugged off Weaker than expected Q1 GDP growth. Meanwhile, market reactions to the poor set of...
Euro Down as ECB Survey Shows Falling Inflation Expectations, Aussie Staying Strong
Euro plummets broadly in today's market after a CB survey revealed significant drop in consumer inflation expectations. Sterling and Swiss Franc also recorded a generalized weakness. On the other hand, Australian Dollar held its ground as the day's strongest currency, buoyed by an unexpected interest rate hike by RBA....
RBA Shoots Up Aussie, Dollar Consolidating Against Europeans and Yen
Australian Dollar surges broadly after surprised RBA rate hike. Tightening bias is also maintained, so more hike(s) could still be in the pipeline. The move in Aussie is taking other commodity currencies higher. Now, a focus will be on whether BoC would follow and surprises the markets too. At...
Euro Soft on Poor Investor Confidence, Aussie Range Bound ahead of RBA
Euro is experiencing some selling pressure today, brought on by discouraging investor confidence data, with other European currencies also showing signs of distress. Meanwhile, US Dollar is making strides, superseding commodity currencies as it rides the wave of last week's late rally.
Australian Dollar is trading within a narrow range...