Market Turbulence Returns as Deutsche Bank Shares Plummet, Shaking Currency Markets
The European session has been marked by a resurgence of market turbulence as Deutsche Bank shares nosedive, fueled by a surge in its credit default swaps. This development has had a domino effect on major European indexes and US futures, both experiencing significant drops. Investors are seeking refuge in...
Yen Takes Center Stage as Falling Yields and Strong Core-Core Inflation Boost Gains
Yen is drawing some attention in today's Asian trading session, supported by declining benchmark US and European treasury yields and robust core-core inflation in Japan. Risk-sensitive currencies, such as Sterling and commodity currencies, are under pressure as major Asian indexes trade lower. Dollar is recovering against the Euro but...
Muted Reactions to SNB and BoE Rate Hikes, Dollar Underperforms
Market's response to the rate hikes by SNB and BoE has been relatively muted. Following today's rate decisions, SNB signaled the possibility of further tightening, while BoE remains open to either a hike or a pause in the future. Dollar is currently the day's worst performer, followed by Swiss...
Euro Leads Gains as Dollar Struggles Post-FOMC; BoE and SNB Decisions Take Center Stage
Dollar faced broad sell-off overnight after the less hawkish than expected Fed rate hike and press conference, with Euro emerging as the biggest winner against the greenback. Sterling and Swiss Franc followed suit, while Australian and New Zealand dollars also strengthened but lagged on a weekly basis.
Attention now shifts...
Sterling Rises on Strong UK CPI Data and BoE Expectations, But FOMC Next First
Sterling is performing strongly after the release of stronger than expected UK CPI data, indicating a rise in inflation rather than a slow-down in February. As a result, it is highly likely that the BoE will hike interest rates by another 25bps during their meeting tomorrow. However, there is...
Financial Markets Exude Optimism, Awaiting Crucial FOMC Rate Decisions
As the mood in the financial markets seems to be rather upbeat, Asian markets are riding the wave of positivity, tracing the upward trajectory set by their US counterparts. All eyes are on FOMC rate decision today, with most expecting a 25 basis point increase. However, uncertainty lingers as...
Euro Strengthens Despite Poor German Economic Sentiment
Euro rises broadly today partly as overall sentiment stabilized. Technical also play a role as the common currency defended near term support levels against both Sterling and Aussie. Poor Germany economic sentiment data was basically ignored by the markets. Market participants appeared to dismiss the poor economic sentiment data...
Aussie Falters after RBA Minutes; Canada CPI Awaited
Australian Dollar is declining broadly as RBA minutes hinted at the possibility of a pause during their next meeting. Meanwhile, Yen has managed to hold on to the some gains it made earlier this week and appears poised for further rallying, particularly against commodity-based currencies.
Both Euro and Sterling have...
Swiss Franc Weakens While Euro and Sterling Firm, No More Safe Haven?
Market reactions to the ongoing banking crisis reveal a shift away from Swiss Franc, traditionally considered a safe-haven currency, as Credit Suisse shares lose over two-thirds of their value following the acquisition announcement by UBS. The broader markets in Europe are, however, relatively steady. Euro and Sterling are experiencing...
Weak Sentiment Persists; FOMC, BoE, and SNB in Focus This Week
Financial markets in today's Asian session exhibit a risk-averse sentiment, despite attempts on the weekend to stabilize the situation from the recent banking crisis. While UBS's acquisition of Credit Suisse may have provided slight support to Euro and Swiss Franc, stocks are trading in red, and commodity currencies are...
Yen Dominates as Market on Brink of International Banking Crisis
Last week, the world appeared to be on the brink of an international banking crisis. The situation might have stabilized with Silicon Valley Bank filing for Chapter 11 bankruptcy, First Republic Bank receiving aid in the form of deposits from major players, and Credit Suisse obtaining a CHF 50B...
Sentiment Taken Another Hit as SVB Filed Chapter 11, Yen Trying to Rally Again
Market sentiment seems to have taken another hit as Silicon Valley Bank filed for Chapter 11 bankruptcy today. Bank shares in the US are in sharp decline, dragging down the broader market. Yen surges again, bolstered by falling treasury yields too. Dollar, Euro, and Swiss Franc emerged as the...
Aussie Gaining Momentum, Dollar Pressured as Banking Fears Subside
Dollar faces renewed selling pressure as Asian markets exhibit a positive tone, following the overnight rebound in US stocks. The question remains: is the banking crisis over? It seems likely, at least temporarily, as major banks rushed to support First Republic and the situation surrounding Credit Suisse stabilized. If...
Euro Mildly Lower after Dovish ECB Hike, Yen Resuming Rally
Euro weakens mildly following the ECB's decision to increase interest rates by 50bps, in line with their previously stated intentions. However, the absence of any reference to future rate hikes in the accompanying statement hints at the possibility of a pause in upcoming monetary policy meetings. Concurrently, Yen is...
Euro and Swiss Franc Struggle as Markets Eye ECB Rate Decision Amid Ongoing Uncertainty
Daily Report:
Despite regaining some ground in the Asian session, Euro continues to trade as the week's weakest performer alongside Swiss Franc. Today's ECB rate announcement is the primary focus for investors, as uncertainty looms over the extent of the anticipated rate hike. The SNB's efforts to stabilize the markets...
Bonds Surge Again Amid Global Financial Crisis Fears; Euro Down, Dollar and Yen Up
The financial markets are once again in a state of panic as Credit Suisse saw its shares plummet by over -20% and hit a new record low, dragging European stocks deeply down with it. Bonds are becoming the go-to for worried investors again, with US 10-year yield breaking the...
Calm Markets Shrug Mixed China Data, Euro Lacks Momentum ahead of ECB
After days of market turbulence, Asian session has been relatively calm today. US stocks recovered overnight with a strong rebound in treasury yields, helping to calm market sentiments. Mixed economic data from China did not seem to have any significant impact on the markets.
With the banking crisis slowly fading...
Dollar Weakens as CPI Slowed as Expected, Easing Pressure on Fed
Dollar weakened slightly in early US session, following the release of economic data which showed that consumer inflation slowed in February to the level as expected. The absence of an upside surprise in the CPI readings means that Fed should be in a more comfortable position to address uncertainties...
Banking Crisis Overshadows US CPI Release, Fed Hike Expectations Lowered
Investors are eagerly awaiting the release of February US CPI figures today, although the banking crisis has overshadowed the event. The possibility of a 50bps hike by Fed next week has been priced out by the market. While traders still anticipate a 25bps hike, with a likelihood of over...
Sentiment Fragile as Banking Worries Remain, Yen and Swiss Franc Soar
The fallout from the collapse of Silicon Valley Bank continues to unsettle investors. Despite measures announced on Sunday by US Treasury, FDIC and Fed to calm the markets, concerns remain. European indexes saw sharp declines led by bank stocks, while benchmark treasury yields fell.
Additionally, the market is also showing...