Dollar Powered Up, Fed to Hike 50bps in May and 75bps in Jun?
Speculations on aggressive Fed tightening intensified sharply last week after a chorus of hawkish comments from policy markets. Markets are indeed pricing in near 70% chance of federal funds rate at 1.50-1.75% by the end of first half, i.e., 125bps above current level. Stocks tumbled sharply towards the end,...
Sterling Falls Broadly after Weak Retail sales, Dollar Up
Sterling drops broadly today as weak UK retail sales data argues that the expected consumption drag from high inflation might have arrived already. Aussie is currently the second worse for the day, then Kiwi. On the other hand, Dollar is rebounding broadly, followed with help from risk aversion again....
Dollar Rises on Risk Aversion and Yields, Euro Rebound Faltered
Overall markets are relatively mixed. Euro's rebound attempt yesterday was rather disappointing, but it's nonetheless still the best performer for the week. Dollar staged a strong rebound overnight, with help from hawkish Fed and rising yield, but there is no clear follow through buying yet. Commodity currencies were generally...
Euro Rebounds as Some ECB Members Talk Up July Rate Hike
Euro rebounds strongly today as some ECB policymakers continued to talk up the chance of a July rate hike. Canadian Dollar is following as second strongest, continuing to be supported by strong inflation data. Dollar is not performing too badly for now, as third strongest. On the other hand,...
JPY Turning Weaker Again, CAD Staying Strong
Inflation data were the main drivers in the forex markets in the past 12 hours. New Zealand Dollar turned slightly weaker after Q1 CPI came in lower than expected, despite surging to 30-year high. On the other hand, Canadian Dollar remains supported by the stronger than expected CPI readings...
CAD Surges after CPI Beat Expectations, Dollar Corrects Lower
Canadian Dollar surges in early US session after much stronger than expected consumer inflation data, which supports more aggressive tightening by BoC. Other commodity currencies are also strong. On the other hand, Dollar is trading broadly lower as recent rally lost momentum, in particular against Yen. Euro is also...
USD/JPY Retreating on Talks of BoJ Intervention, Dollar Softens Too
Japan's benchmark 10-year JGB yield is pulled above BoJ's cap of 0.25% in Asian session today. That triggered intervention by BoJ to defend the ceiling. At the same time, USD/JPY breached 129 handle but quickly retreated, on talks that BoJ could also intervene at around 130. But judging from...
Yields Rise, Yen Falls, Euro Trying a Rebound
Yen's weakness remains the main theme today as selloff in major global treasuries continue. US 10-year yield breaches 2.9 handle while Germany 10-year yield breaches 0.94. UK 10-year Gilt yield is also heading towards 2% handle. Swiss Franc is following as second weakest together with Canadian Dollar. On the...
Yen Selloff Intensifies Again, Canadian Dollar Outperforms
Selloff in the Japan Yen continued this week and intensified in Asian session today. The move came as global benchmark treasury yields powered up, including those in the US, Germany and UK. For now, commodity currencies are the stronger ones for, followed closely by Dollar. European majors are generally...
Euro Knocked Down after ECB, Dollar Striking Back
Euro is knocked down in early US session after ECB left interest rates unchanged. The central bank leaves the option to continue the asset purchases program after June, even though it will be concluded in Q3. The announcement disappoints some Euro traders who are eager for more hawkish tone....
Euro Rebounds Ahead of ECB, Dollar Follows Yields Lower
Dollar dropped notably overnight together with pull back in benchmark treasury yield. The selling of the greenback continued in Asian session today. Even the weak Yen is recovering against Dollar, but it's still, for now, the worst performing one for the week. On the other hand, European majors are...
Dollar Broadly Firm after Record PPI, But Lacks Momentum Against Yen
Dollar is trading broadly higher today, with help by upside breakout against Yen. The greenback on remains firm after record PPI reading. Sterling is currently the second strongest, followed by Euro. On the other hand, New Zealand Dollar is trading as the worst performing, even after RBNZ's 50bps hike....
NZD Down Despite RBNZ Hike, CAD Awaits BoC
The forex markets trade in tight range in Asian session today. New Zealand Dollar got little support from the RBNZ 50bps rate hike. It's actually trading as the weakest one for the day at the time of writing. As for the week, Swiss Franc is currently the strongest, with...
Dollar and Yield Dip after CPI, Stocks Rebound
Dollar drops in early US session together with treasury yields after consumer inflation data. While headline CPI came in higher than expected, core CPI's pick up missed expectations. Commodity currencies are trading generally higher as US futures point to a rebound in major stock indexes. European majors are also...
Dollar Turned Mixed as CPI Awaited, Yen Weakness Continues
Dollar turned a bit mixed in Asian session as markets await consumer inflation data from the US today. The greenback is losing some momentum against Yen as it's pressing a long term resistance level at 125.85. Meanwhile, it ticks down against European majors, which are recovering. On the other...
Yen Selling Steps Up a Gear on Rising Treasury Yields
Yen's selloff intensifies today, following extended rally in major benchmark treasury yields. US 10-year yields breaks 2.75% handle for the first time since March2 019. Germany 10-year bund yield also breaches 0.8% handle. On the other hand, Japan 10-year JGB yield is staying comfortably below BoJ's 0.25% cap. Euro...
Yen Lower as a Busy Week Starts, RBNZ, BoC, ECB, UK GDP, US CPI Featured
Yen is trading broadly lower in Asian session today. But commodity currencies are also soft on mild risk-off sentiment. On the other hand, Euro and Dollar are the stronger ones, while Sterling and Swiss Franc follow. UK data will be the main focus in European session while US calendar...
Dollar Ended Broadly Higher as 10-Yr Yield Hit 2.7
Dollar was initially mixed last week but buyers jumped in after FOMC minutes revealed the quantitative tightening plan. US benchmark treasury yields also surged to highest level since 2019. Both Canadian and Australian Dollars followed as second and third strongest. Aussie was boosted by RBA's hints on earlier rate...
Dollar Strong on Rising Yields, Canadian Dollar Rises Slightly after Job Data
Canadian Dollar rises slightly after solid job data, but Dollar is also firm. The greenback is on track to end as the strongest one for the week, with help from extended rally in treasury yields. On the other hand, Sterling is under some selling pressures but Euro is still...
Euro Soft in Quiet Market, CAD Awaits Job Data
Overall, the markets are rather steady so far in the last trading day of the week. Major Asian indexes are treading water. That followed a late rebound in US markets overnight. Euro weakens mildly and remains the worst performer for the week, followed by Yen and Swiss Franc. Dollar...