Aussie Dips after RBA, Pound Marches On
Australian Dollar dips broadly today after RBA delivered a smaller than expected rate hike. But the selloff in Aussie is so relatively limited. New Zealand Dollar follows lower, ahead of tomorrow's RBNZ rate decision. RBNZ is expected to hike by 50bps, but now it's not totally certain given that...
Euro and Swiss Franc Down, Sterling Extending Rebound
Funds appear to be flowing out of Euro and Swiss Franc, in relatively quiet trading today. Some focuses are on the Euro-denominated bonds issued by Credit Suisse, which dropped to record lows. Investors are concerned about the Swiss bank's restructuring program, due to be announced later in the month....
Sterling Rises on PM Truss U-Turn Rumor
Sterling strengthens entering into European session, on rumors that UK Prime Minister Liz Truss to preparing to do a U-turn on tax and spending cuts. The talks came after Truss faced heavy scrutiny from Tory rebellions at the Conservative Party Conference. Markets are steady elsewhere, though. Traders are holding...
Risk-off Sentiment to Continue, But the Worst is Behind Sterling
Sterling surprisingly ended as the best performer last week, as it staged an impressive U-turn after initial selloff. BoE's intervention should have saved the Pound for now. The development also helped Euro rebound while Dollar trailed behind as third. Rally in Dollar looked a bit exhausted as it failed...
Dollar Lifted Mildly by Core PCE Reading, Euro Losing Momentum
Dollar is lifted mildly after stronger than expected core PCE inflation reading. But overall markets are relatively quite in quarter-end trading. Sterling is still keeping its place as the strongest one for the week, but rebound appears to be losing some momentum. Euro is following as second, and then...
GBP/CAD Pressing Key Cluster Resistance as Pound Extended Rebound
Sterling's rebound extended further overnight as sentiment towards it continued to stabilized. Indeed, the Pound is trading up against Aussie and Canadian for the month. Sterling looks set to have a strong close for the week too. Commodity currencies are generally pressured today, together with steep decline in Japan...
Pound Attempting Further Recovery in Consolidation Markets
The forex markets are generally in consolidation mode today. Risk sentiment is slightly on the off side, but there is no serious selloff in stocks. Treasury yields in US, Germany and UK are trading mildly higher, giving Yen a little pressure. But commodity currencies are the weaker ones. On...
Dollar Retreats as Stocks Rebound, Yields Tumble
Dollar retreated notably overnight, following the rebound in US stocks and steep pull back in treasury yields. But it's so far staying as the second strongest for the week, next to Swiss Franc, while Euro is third. Sterling stabilized further with another recovery attempt in progress. Commodity currencies are...
BoE Intervention Couldn’t Pop Sterling Up
In a surprised move, BoE announced to intervene in the gilt markets. While 10-year gilt yield drops notably on the news, the recovery in FTSE is just mild. Sterling also just fluctuates and it's trading as the weakest one for the day. On the other hand, Swiss Franc buyers...
Dollar Up on Risk-Off Sentiment, Yuan Accelerating Down
Risk-off sentiment dominates Asian markets today, as the Chinese Yuan's free fall accelerates. The steep depreciation could limit the room for the government to ease monetary policy further to help the economy that's still troubled by pandemic measures. Yen and Dollar are currently the stronger ones in the currency...
Dollar Edges Higher after Consumer Confidence, But Stays in Consolidations
Dollar edges mildly higher after better than expected consumer confidence reading, but stays range bound. Overall, the forex markets are in consolidation mode. Sentiment appears to be supported as US stocks open higher, which European indexes are steady. One focus for the rest of the day is US 10-year...
Dollar Takes a Breather While Gold Extends Decline
The currency markets have turned into consolidation mode temporarily. Sterling further stabilized after BoE said in a statement that the assessment of the government's growth plan will be done at next "scheduled" meeting, ruling out an emergency meeting. Dollar is also taking a breather even though 10-year yield rose...
Sterling Stabilizes and Recovers, But Too Soon to Confirm Bottoming
Dollar is extending its broad-based rally today. But other positions are somewhat changing. Sterling is now recovering as traders take profit, while awaiting an unconfirmed statement from BoE. Euro is also paring some recent losses. Meanwhile, Swiss Franc, Yen and Canadian soften in general. Australian and New Zealand Dollar...
Sterling Free Fall Continues Even Against Weak Euro
Sterling's free fall extends into Asian session today, even against the weak Euro which is pressured against all other major currencies. Dollar is currently the strongest one and would likely remain so for now. Yen, Swiss Franc and Canadian Dollar are also firm. Australian and New Zealand Dollar are...
Sterling Nose-Dived, Dollar Skyrocketed, Yen Saved by Intervention
It's such a week of surprises. The biggest one was probably the free fall in Sterling, as markets reaction to the "mini-budget" of the new UK government was overwhelmingly negative. Commodity currencies and Euro were also pressured on risk aversion.
Dollar emerged as the strongest one after hawkish Fed hike,...
Sterling in Free Fall on Mini-Budget
Sterling is in free fall today as markets reacted negatively to the "mini-budget" of the new government. Selloff came after Finance Minister Kwasi Kwarteng announced to cancel and planned rise in corporation tax, reverse a recent rise in income tax, and cut taxes for businesses in designated investment zones....
Dollar and Yen Staying Strong on Risk-Off Sentiment
Dollar, Yen and Swiss Franc are currently trading as the strongest ones for the week, as supported by risk-off sentiment. Yen overpowers the other with help from intervention by Japan. Dollar is supported by hawkish Fed while Swiss Franc clearly lagged behind. Nevertheless, the Franc is still up against...
Yen Rebounds on Intervention, Swiss Franc Tumbled after SNB
Extreme volatility was seen in the markets in the past 24 hours. Yen rebounds broadly today after Japan confirmed that "decisive" currency intervention was made. That came after BoJ stood pat and pledged to keep rate at low level. Swiss Franc was sold off sharply after SNB hiked 75bps,...
Dollar Upside Breakout after Hawkish Fed, SNB and BoE Next
Dollar broke out to the upside overnight following hawkish Fed hike. At the same time, it's closely trailed by Swiss Franc for now, on geopolitical risks. Risk aversion is also keeping Yen afloat in crosses, despite strong rally in treasury yields. For now, Kiwi is the worst performer for...
Euro Down on Russian Military Mobilization, Dollar and Swiss Franc Gain
Euro is sold off broadly, together with Sterling, after Russia announced partial military mobilization. Reactions in European stock markets are muted, nevertheless. For now, Swiss Franc is the strongest one for today, followed by Dollar, Canadian and Yen. Aussie and Kiwi are mixed. Focuses will now turn to FOMC...