Swiss Franc Skyrockets after SNB Rate Hike, Sterling Firmer after BoE
Swiss Franc surges sharply higher today after surprised rate hike by SNB. Sterling also rises on BoE rate hike with hawkish voting. Yen is following closely on risk aversion but Dollar is lagging slightly behind. The greenback is still digesting post FOMC position adjustments. Risk-off sentiment sends commodity currencies...
SNB and BoE Next after Fed Delivered
US stocks recovered overnight after Fed delivered the 75bps rate hike as market priced in, while Dollar and yields retreated. Asian markets are mixed with some weakness seen in Hong Kong HSI. For the week, the greenback remains the strongest one, except versus Yen which it's paring gains against....
Markets Turn Cautious ahead of FOMC, Fed to Hike 50bps or 75bps?
The forex markets are generally staying inside yesterday's range so far today. Stocks in Europe and US futures are recovering while treasury yields retreat. Traders are clearly turning cautious ahead of FOMC rate decision. The question is whether Fed would deliver 75bps hike as markets priced in, or stick...
Dollar Firm in Right Range as FOMC Rate Hike Awaited
The forex markets are steady in tight range in Asia, while Dollar remains the strongest one for the week. Main focus today is on whether Fed would deliver a 75bps hike as markets fully priced in, or stick to its "original plan" of 50bps hike per meeting. Yen is...
Sterling Selloff Resumes, Dollar Power Continues
Sterling's selloff resumes today, after job data added to expectation that BoE would lag far behind Fed in tightening. Weak market sentiment sends commodity currencies lower. Thanks to buying against the Pound, Euro is so far the strongest one for today, leading Dollar, Yen and Swiss Franc. But still,...
Dollar Rally Still Indecisive Despite Expectations of 75bps Fed Hikes
Dollar is paring some gains today as markets digest near term moves. But the greenback remains the strongest for the week, as markets are adding bets to more aggressive rate hikes by Fed this week, and at next month's meeting. Yen is so far the next strongest, as supported...
Sterling Dives after Unexpected GDP Contraction, Yen and Dollar Surge
Sterling falls broadly today after GDP unexpected contracted for the second month in April. Chance of an overall contract in Q2 is raised while there are few positive signs for Q3 for now. Meanwhile, the remaining chance of a 50bps hike by BoE later this week is basically priced...
Dollar Starts the Week Strong; Fed, SNB, BoE and BoJ to meet
Dollar rises broadly as the week starts as risk aversion extended into Asia session. But Yen is not benefiting much this time, as recovery lost momentum. Commodity currencies are also weak together with Euro. Swiss Franc and Sterling are just slightly better the others, but still weak against the...
Stagflation Worries Pushed Dollar and Yield Higher, Stocks Lower
Worries of stagflation intensified a whole lot last week. In particular, even the habitually cautious ECB pre-committed to rate hikes in July and September, while delivering new economic forecasts with sharply higher inflation and lower growth projections. Selloff in risk markets accelerated further after US CPI re-accelerated to new...
Dollar Surges as CPI Reaccelerates on Energy and Food Prices
Dollar rises strongly in early US session after CPI data. Headline inflation reaccelerated with strong rise in energy and food prices From this perspective, there is little scope for Fed to pause tightening in September. It might instead continue its 50bps per meeting plan for longer. The greenback is...
Risk Sentiment Turns Sour ahead of US CPI
Euro's post ECB rally was very short-lived, while market turned into risk-off mode later in US session. Negative sentiment continues in Asia today as US consumer inflation data is awaited. So far, Sterling is the strongest one for the week followed by Dollar, and then Canadian. Yen is the...
Euro Soars as ECB Pre-Commits to Jul and Sep Rate Hikes
Euro is attempting to rally after ECB surprisingly pre-commit to rate hikes in July and September. Germany 10-year yield also jumps to 1.45% in reaction. Commodity currencies turn slightly weaker on overall sluggish market sentiment. Dollar is mixed for now, and will need some fresh inspiration from tomorrow's CPI...
Euro Bulls Await ECB for Guidance, Yen Licking Wounds
Yen is recovering slightly in Asian session today, digesting recent steep selloff. The climax selling is temporarily past as focuses turn to ECB policy decision today and US CPI tomorrow. Euro is trading mixed for the moment, except versus Yen and Swiss Franc. To be specific, it's range bound...
Euro Rises ahead of Tomorrow’s ECB, Yen Selloff Continues
The main focus remains on Yen's selloff today, on the back of widening yield spread between Japan JGB and other major benchmark treasuries. Meanwhile, Euro appears to be strengthening in general too. Traders are probably buying up the Euro in anticipation on a hawkish ECB policy decision and press...
Dollar and Euro Mixed, Yen and Swiss Franc Staying Pressured
Weakness in Yen and Swiss Franc are both staying under selling pressure today, and there is not clear sign of bottoming yet. Sterling is currently the stronger one for the week but there is no clear breakthrough. Aussie and Loonie are digesting some gains but remain firm. Meanwhile, Dollar...
Yen and Franc Weakness Continues, Aussie Rally Faded Quickly
Selloff in Yen and Swiss Franc is still the main theme today even though US and Germany benchmark yields are retreating slightly. Australia was only lifted very briefly by the larger than expected rate hike by RBA. Though, Aussie is maintaining gains against Kiwi, which is the worst performing...
Aussie Jumps on Larger than Expected RBA Rate Hike, Yen Selloff Continues
Australian Dollar rises broadly after RBA surprised the markets by a larger than expected 50bps rate hike. It's now overpowering the strong Canadian and US Dollars. On the other hand, Yen's weakness persists on rising benchmark treasury yields in the US and Europe. Sterling is turning soft after Prime...
Sterling Rises on Positive Market Sentiment, But Momentum Weak
Overall market sentiment is positive in the market today, even though trading is subdued with some European countries on holiday. Sterling is trading higher with commodity currencies. On the other hand, Swiss Franc is is the weakest one, followed by Yen and Dollar. Euro is mixed for now. In...
RBA, ECB and US CPI in Focus This Week
Major Asia indexes trade mildly higher today but the forex markets are quiet. Trading will likely be subdued ahead with Swiss, France and Germany on bank holiday, while the US economic calendar is empty. But an eventful week will kick start with RBA rate decision tomorrow, followed by ECB...
Yen Bearishness Persists on Rising Yields, Loonie Strong on BoC and Oil
It's another poor week for Yen following the rally in benchmark treasury yields in US and Europe. It should be noted again that BoJ has a 0.25% cap on 10-year JGB yield, and thus, gaps are widening. Sterling was a distant second weakest, on risks of stagflation while Swiss...