Poor China Data Knocks Down Asian Markets, Aussie and Kiwi Tumble
Asian stocks took a beating today as disappointing economic data from China put a damper on the region's markets. The bearish mood led to widespread selling of commodity currencies. Despite higher-than-expected CPI figures, Australian Dollar found little support, while an uptick in New Zealand business confidence did little to...
Sterling Jumps Broadly While Dollar Retreats as Month-End Trading Sets in
Dollar appears to be taking a breather, experiencing a broad decline in month-end trading as it reverses some of its recent gains. The initial support from the debt ceiling deal seems to be waning, while market participants are adopting a cautious stance ahead of this week's crucial non-farm payroll...
Markets on Standby; Aussie Down, Yen Recovers, as Traders Brace for Key Economic Data
Trading has remained muted as major markets recuperate from a lengthy weekend. Investors are not reacting dramatically to the agreement regarding US debt ceiling. Instead, they are casting a cautious eye towards Congress, awaiting indications of how the deal will be received. Compounding the apprehension, a slew of significant...
Dollar Dominates as Market Anticipates Another Fed Rate Hike in June
Last week saw the US Dollar dominating the currency markets, with a surprising rally buoyed by market sentiments flipping in favor of an imminent Fed rate hike in June. An atmosphere of growing optimism pervaded the scene, buoyed by increasing confidence in a forthcoming agreement on raising the US...
Dollar Buying Emerges Again after Inflation Data, Yen Extending Fall
While Dollar engaged in retreat for most of the day, some buying appears to emerge again in early US session. A surprising rise in both headline and core PCE inflation is considered to be a key factor driving this resurgence. While it's unsure whether that could result in sustainable...
Dollar Retains Weekly Lead But Started Losing Momentum
Dollar has maintained its position as the strongest performer for the week, despite the noticeable waning of its upside momentum over the past two days. Today, markets anticipates the release of several US economic indicators, including PCE inflation and durable goods orders. However, the primary driver is likely to...
Dollar Power Continues, Gold Resumes Near Term Fall
Dollar continues to be the strongest one for the week and sees fresh buying in early US session. Republican House Speaker Kevin McCarthy noted the debt ceiling negotiations have made some progress. But that was largely ignored by stock investors, even through treasury yields are on the rise. As...
Dollar Soars after FOMC Minutes and Fed Comments
Dollar surged overnight trade and maintained its momentum into today's Asian trading session. This robust performance followed the release of FOMC minutes, which depicted a high degree of uncertainty regarding the future trajectory of monetary policy. Despite this ambiguity, a pause in the tightening cycle by June does not...
Euro Sees Near-Term Boost, Commodity Currencies Pressured
Today's trading session saw broad selling pressure on commodity currencies, partially due to risk-off sentiment prevalent in the market and partly due to the dovish rate hike from RBNZ. As it stands, Euro seems to be the major benefactor, in part due to its rebound against Swiss Franc. However,...
GBP Bounces on CPI, NZD Down after RBNZ
New Zealand Dollar falls broadly today as the markets considered the RBNZ rate hike as a dovish one, probably with interest rate already peaked. The development also takes Aussie lower too. Meanwhile, Sterling is attempting a bounce after strong core CPI reading, as well as services prices. But buyers...
Forex Markets Turn Risk-Averse, Sterling Lower after PMI
Forex markets have turned noticeably risk-off today, with Aussie and Kiwi showing broad-based declines. Despite Loonie holding strong, it is being outperformed by both Dollar and Yen. Meanwhile, European majors present a mixed picture, with Sterling lagging behind Euro and Swiss Franc.
Today's PMI data illustrated a 'two-track' economy in...
Forex Markets Stable, Focus Turns to Global PMI Data
In today's quiet Asian session, forex markets have largely stayed within a narrow range, with minimal response to positive PMI data from Australia and Japan. Yen has seen a slight recovery but continues to be the weakest performer of the week, followed closely by Sterling and Dollar. On the...
Swiss Franc Surges, Yen Under Pressure, Aussie Looking at Copper
Yen is once again back under selling pressure today, with the selloff mainly concentrated against Swiss Franc, and to a lesser extent Euro. Risk-on sentiment, rising benchmark treasury yields, and the expectation of BoJ keeping policy ultra-loose will likely keep Yen weak for the time being. The only question...
Markets in Mildly Positive Mood as Another Debt Ceiling Talk Awaited
Mood is generally positive in Asian session today, with Hong Kong HSI leading other major indexes higher. While the G7 communique released after the meeting in Hiroshima drew furious response from both China and Russia, there was little reactions among investors. Dollar is trading mildly lower, followed by Canadian...
Yen Struggled as Global Stock Markets Shone, Kiwi Reigned Supreme
Last week, the financial markets made a dramatic U-turn, as many key global stock indexes recorded substantial gains. Despite underlying concerns, the looming issue of US debt ceiling seems on track to be resolved, thus avoiding a default. US Treasury Secretary Janet Yellen's explicit warnings appear to have had...
Dollar and Risk Sentiment Revert to Inverse Relationship as Week Ends
As we wind down the week, dollar seems to have resumed its inverse relationship with risk sentiment. Major European stock indices are trending upwards, with Germany's DAX reaching hitting a new record high. Meanwhile, Euro and other European currencies are registering notable gains against Yen and the greenback. However,...
Yen’s Mild Recovery Overshadowed by Risk-On Sentiment; Euro, Swiss Franc Trail Closely in Underperformance
Japanese yen made a modest recovery today, bolstered by yet another month of robust consumer inflation data. However, this uptick in the currency was held back by strong risk-on sentiment prevalent in Japan, with Nikkei surging to a 33-year high. BoJ's continued commitment to its ultra-loose monetary policy also...
Dollar Extends Rally, Gold Breaks Key Support
Dollar continues to power up today, as traders are rethinking Fed's policy path ahead. The odds of a hold at June 14 FOMC meeting has dropped to around 60%, as the economy continued to show resilience. The strong stock market rally this week is also helping. Canadian Dollar is...
Dollar Holds Strong Despite Risk Market Rally: Debt Ceiling Negotiations Offer a Glimmer of Hope
Market sentiment received a significant boost following upbeat news about US debt ceiling negotiations, and yet, Dollar remains resilient, showcasing an impressive strength. US President Joe Biden, following a meeting with Republican House Speaker Kevin McCarthy, presented an air of optimism as discussions continue. "Now we have a structure...
Dollar Extending Rally Against Euro and Swiss Franc, Sentiment Flip-Flops
Market sentiment continue to flip-flop on flowing headlines regarding US debt ceiling negotiations. But then, it should be remembered that it's not done until it's done. So uncertainties and volatility still lie ahead. Yen is the consistent one extending its near term decline. Commodity currencies are rebounding with Sterling....