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....
Forex Markets See Uncertainty, Yen’s Slide Persists, Gold Back Below 2000
Clear direction is yet to be established in the forex markets this week, with the exception of Yen's continued depreciation, albeit at a slow pace. Canadian Dollar's rally, spurred by CPI data, was abruptly halted due to worsening risk sentiment, marked by DOW's over -330pts drop. US Treasury Secretary...
Canadian Dollar Rises on Unexpected Inflation Uptick; Australian Dollar Continues to Struggle
Canadian Dollar is enjoying a broad rally in early US trading session, fueled by data that revealed unexpected reacceleration in Canadian consumer inflation for April. The evidence for BoC to resume tightening measures is steadily accumulating. Amid slight risk-off sentiment in US markets, due to persistent uncertainties over debt...
Australian Dollar Tumbles on Weak Consumer Sentiment and China Data
Australian Dollar took a dive in today's Asian trading session, reeling from a sharp decline in consumer sentiment and a slew of weaker-than-anticipated economic data from China. Despite the headwinds facing Aussie, New Zealand Dollar held its ground, buoyed by Westpac's predictions of continued monetary tightening by RBNZ from...
Market Sentiments Rebound on US Debt Ceiling Negotiation Optimism
Market sentiments show signs of revival today, appeared to be buoyed by optimism over a potential debt ceiling agreement between US Democrats and Republicans. Over the weekend, Treasury Secretary Janet Yellen delivered upbeat remarks, indicating that negotiations were in full swing and marked by "some areas of agreement."
This optimism...
Yen Weakens Amid Nikkei Rally; Dollar Softens as Safe Havens Digest Recent Gains
Yen declines broadly in Asian session, appears to be more of a reaction to rally in Nikkei, which broke through 29500 level for the first time since November 2021, and now seems poised to challenge 30000 psychological level. Dollar, along with its safe-haven counterpart, Swiss Franc, also trended lower...
Dollar, Yen, and Swiss Franc Lead Currency Markets, Suggestive of Risk Aversion
In the currency markets last week, Dollar, Yen, and Swiss franc Emerged as the standout performers. Conversely, New Zealand and Australian dollars lagged, painting a picture suggestive of risk aversion within the markets. However, this sentiment has not yet manifested itself in the stock markets, at least not with...
Dollar Strengthens Amid Rise in Import Prices; Euro Breaks Near Term Support
Dollar is capitalizing on its recent rebound in early US sessions, bolstered by data that showed a 0.4% month-on-month rise in import prices for April – marking the first increase since late 2022. This resurgence places the Greenback on track to be this week's top performer, trailed by Japanese...
Sterling Hit by BoE Bailey; Aussie Suffers Amid Copper Price Decline
In the wake of comments from BoE Governor Andrew Bailey suggesting a potential pause in rate hikes, Sterling has taken a sharp downward turn overnight. Despite the expected 25bps hike yesterday, Bailey's interview with Bloomberg TV sent ripples through the market, causing a broad sell-off of the Pound. With...
Sterling Mixed Reaction to BoE Rate Hike; Yen Climbs With Dollar
Sterling's response to BoE rate hike has been somewhat ambivalent. Despite BoE's openness to further tightening and a rosier economic outlook, forecast for inflation indicates a marked downturn, with a "material" undershooting expected in the forecast horizon. The voting pattern held no surprises, leaving the Pound now turning its...
Sterling Soft Ahead of BoE Rate Hike, Euro Staying Pressured
As the market holds its breath for today's BoE rate decision and economic projections, Sterling is trading on a softer note, barring against Euro. Overnight attempts to resume the recent rally against Dollar were short-lived, with the Pound returning swiftly to its familiar range. The potential for hawkish and...
Dollar and Yield Down after US CPI, Aussie Firming Up
Dollar finds itself on the back foot in early US trading as data showed both headline and core CPI slowed in April. This data release has also sent 10-year yield plummeting below 3.5% mark. Japanese Yen is finding some strength, bolstered by the drop in yields. On the other...
Dollar Mixed Ahead of US Consumer Inflation Data, Stocks Resilient
Dollar is trading mixed in Asian session today as market participants eagerly anticipate April's consumer inflation data from the US. The much-anticipated meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy unfolded as expected, with no resolution on the government's self-imposed USD 31.4T debt limit. This...
Dollar and Yen Strike Back as Biden-McCarthy Meeting Eyed
Dollar and Yen are striking back on mild risk-off sentiment while Commodity currencies are paring some gains too. Eyes will be on the meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy on debt ceiling. A final agreement on raising the debt limit is not expected...