Risk-On Sentiment Sweeps Markets, Weighs on Safe Haven Currencies
Yen, Swiss Franc, and to a lesser extent, Dollar are trailing at the bottom of the weekly currency performance chart. Strong risk-on sentiment has swept through the US markets, and the positive momentum continued in Asia. This shift in sentiment was ignited by better-than-expected US retail sales data overnight,...
Retail Sales Strength Sparks US Market Surge, Recession Fears Subside
The US markets reacted positively today to stronger-than-expected retail sales data, which posted its fastest growth in a year and a half. Additionally, better-than-expected jobless claims numbers helped alleviate concerns about weaknesses in the employment market. The robust rally in US futures, along with rising yields and a stronger...
Aussie Rises on Strong Job Growth, But Gains Limited
Australian Dollar strengthened during Asian session today, buoyed by stronger-than-expected employment growth data. This positive surprise offered some support to Aussie, though gains were limited, failing to push the currency above yesterday's high. The labor market report, which showed a modest increase in unemployment rate, suggests some loosening in...
Muted Reaction to US CPI, Euro Leads While Kiwi Struggles
The market's initial reaction to US CPI data has been relatively subdued. While both headline and core CPI readings slowed in July, they remain elevated. This ongoing disinflation is a positive sign for the Fed, but the pace is not rapid enough to justify a larger rate cut in...
NZD Tanks After RBNZ Cut, UK and US CPI for Next Volatility Wave
New Zealand Dollar plunged today after RBNZ unexpectedly cut interest rates by 25bps, marking the first reduction in this easing cycle. This move came much earlier than the market's anticipation of a rate cut in October or November. The selloff gained further momentum after RBNZ Governor Adrian Orr disclosed...
Dollar Softens after PPI, Kiwi Strong Ahead of RBNZ
Dollar weakens broadly in early US session after July's PPI came in lower than expected, signaling easing in inflationary pressures. This development was well-received by investors, with stock futures ticking up slightly and 10-year Treasury yield dipping in response. While the softer PPI readings provide some relief to those...
Pound Strengthens on UK Jobs Data, But Eyes Further Economic Releases
Sterling is making notable gains after UK employment data revealed an unexpected drop in the unemployment rate for June. Additionally, July's figures showed continued growth in payrolled employment and a rebound in wage growth. This robust set of data strengthens the position of the hawks within BoE's MPC, who...
Yen and Swiss Franc Weaken in Quiet Markets as Focus Shifts to Australian Data
Yen and Swiss Franc weaken slightly in today's subdued trading environment. With the economic calendar offering little in terms of market-moving events during the European and US sessions, currency movements have been minimal. Meanwhile, Australian and New Zealand Dollars are showing modest strength, though most other major currencies are...
Quiet Forex Start Masks Anticipation of US CPI-Driven Volatility
The forex markets have started the week on a subdued note, typical of a Monday morning in Asia, particularly with Japan on holiday. Yen remains in a consolidation phase, holding steady after its recent gains and staying as the strongest currency this month so far. Swiss Franc is not...
Market Panic Subsides as Consolidations Take Hold, but Sentiment Remains Fragile
The global financial markets started last week in a state of panic, driven by a sharp selloff in stock markets, with Japan's Nikkei index experiencing particularly heavy losses. However, as the week progressed, this initial wave of panic appeared to subside, with market sentiment stabilizing somewhat.
This calmness, however, should...
Safe-Haven Currencies Edge Higher, But Momentum Weak
As we move into US session, safe-haven currencies like Yen, Swiss Franc, and Dollar are showing modest gains, driven by weaker stock futures and treasury yields. However, momentum behind these currencies remains unconvincing, with trading sluggish across the board. Most major pairs and crosses are confined within the ranges...
US Stock Rebound Fails to Boost Asian Markets, Focus on Canadian Jobs Data
The US stock market rebounded notably overnight, with all three major indexes closing higher. However, this positive momentum didn't carry over to the Asian session, where major markets are trading mixed. Despite the gains in the US, the price actions this week still appear more corrective than not, indicating...
Dollar Gains Slightly after Jobless Claims, Calm Forex Trading Continue
Forex trading continues to be subdued today, with Dollar gaining slightly in the early US session after better-than-expected jobless claims data. This data is particularly crucial as market participants are closely monitoring employment figures following the triggering of the Sahm Rule, which signals potential rapid employment deterioration leading to...
Central Bank Signals Ignored; Consolidation Continues in Currency Markets
The financial markets are relatively quiet in Asian session today, with major currency pairs and crosses trading within yesterday's range. BoC's summary of deliberations suggested that the central bank is on track for further policy loosening. Meanwhile, BoJ's summary of opinions indicated the board is preparing for more rate...
BoC Deliberations Awaited as Kiwi Gains, Yen Falls
News flow has been slow today, with only second-tier economic data coming out of Europe and no major releases from the US. Some attention is turning towards Canada, where BoC is set to release its summary of deliberations from the July 24 meeting, which resulted in the second rate...
NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution
New Zealand Dollar surged strongly today following much better than expected Q2 employment data.. Speculations of an early rate cut by RBNZ next week now seem exaggerated. Major banks still expect RBNZ to start easing monetary policy this year, with consensus pointing to the November meeting. However, there's still...
Dollar Strengthens Mildly Amid Market Calm, Sterling Weakens
Dollar is showing broad but mild strength today as global financial markets stabilize after recent turmoil. The stock market rebound, including a notable 10% surge in the Nikkei, appears to be driven by short covering rather than a sustained recovery. Despite the temporary calm, the risk of another round...
Market Volatility Persists, Aussie Steady with RBA’s Intricate Inflation Forecast
The financial markets continued to see extreme volatility. DOW dropped by over -1000 points overnight, but the global rout seems to have paused for now. Nikkei staged a dramatic 10% rebound in early trading after yesterday's history plunge of -12.4%. However, this recovery was not mirrored by other Asian...
Global Markets Crashing: Nikkei’s Historic 12.4% Plunge, DOW Futures Down 1100 Points
Global stock markets are in crash mode today, beginning with the massive historic -12.4% decline in Nikkei. Major European indexes are also trading deeply in the red, with losses around -3%, though these are overshadowed by the severe drop in Japan. Concurrently, DOW futures are down over -1100 points,...
Market Rout Deepens Globally: Will ISM Services Provide Relief?
The global market turmoil showed no signs of easing as the week began, with Japanese stocks taking a severe hit during Asian session. Both the Nikkei 225 and Topix indices plunged by as much as nearly -10%, marking a -20% drop from their all-time highs on July 11. This...