FOMC Minutes: QE Tapering can Come in As Soon As Mid-November
At the FOMC minutes for the September meeting, the members sent more hints about QE tapering. It is highly likely a formal announcement will be made in November, barring abrupt deterioration of pandemic condition and power shortage problems.
On economic developments, the Fed acknowledged that “economic activity had continued to...
Dollar Firms Up Slightly after CPI, But No Follow Through Buying Yet
Dollar firms up mildly in early US session as headline CPI was back at multi-decade high, which core CPI remains stubbornly strong. The gain in the greenback is so far limited. Overall markets continue to trade in consolidative mode, with mild weakness seen in commodity currencies while Swiss Franc...
Markets in Consolidation as US CPI and FOMC Minutes Awaited
The markets are trading in consolidative mode in Asia today. Dollar attempted to resume near term rally against Euro overnight, but quickly lost momentum. While Yen remains generally weak, selloff slowed, along with slight retreat in US 10-year yield, and retreat in stocks. Traders will turn their focuses firstly...
Euro Softens on Weak Economic Sentiment, Yen Selloff Remains the Main Theme
There is basically no change in the Yen selloff theme in the markets. But buying focus has shifted to commodity currencies, as led by Aussie and Kiwi, as well as Sterling. Euro is turning a touch weaker after poor German sentiment data, while the Pound is supported by job...
OPEC+ Under-produced Despite Energy Crisis
OPEC+ produced less than promised despite global energy shortage. The alliance comprised of 10 OPEC members, 9 non-OPEC producers and 3 OPEC members exempted from quotas produced a total of 40.73M bpd in September, compared with 40.26M bpd a month ago. Output from OPEC-10 and non-OPEC aggregated to 36.57M...
Focus Turns to UK and Germany Data, as Yen Pares Loss
The forex markets turn into consolidative mode in Asian session. Yen recovers mildly, digesting the recent steep selloff. But there is no clear sign of bottoming in the Japanese currency yet. Commodity currencies are also retreating mildly, following some mild selloff in stocks. Euro and Dollar are mixed while...
CAD Supported by Energy Price Strength. Strong Job Market and Inflation Lifted Yields
Falling to the weakest level since August, USDCAD was the worst performer amongst majors (CAD best performer against USD). Loonie’s rebound was driven by energy prices and strong job data. Elevated inflation also has again heightened speculations about BOC’s rate hike.
The major driver of loonie’s strength was energy price....
Yen Stays Pressured, Euro Sluggish on ECB Comments
Overall outlook in the financial market is unchanged, with Yen selloff as the main theme, as major global treasury yields continue to march higher. Euro is second weakest after ECB officials talked down the threat of inflation. Australian Dollar is trading broadly higher, followed by Kiwi. Dollar, Sterling and...
Yen Selloff Continues on Strong Stocks and Yields, Sterling Lifted by Hawkish BoE Comments
Yen's selloff continues as another week starts, backed by rebound in Asian stocks and Japanese yield. Indeed, 10-year JGB yield, currently at 0.093, is on track to 0.1 handle. Sterling is currently the strongest one, as lifted by hawkish comments from BoE officials over the weekend. Australian Dollar is...
CFTC Commitments of Traders – Energy Prices Rallied amidst Concerns of Prolonged Power Shortage
Energy prices rallied across the board as the problem of energy shortage across the globe has exacerbated. According to the CFTC Commitments of Traders report for the week ended October 5, NET LENGTH of crude oil futures rallied +24 493 contracts to 398 307. Speculative longs jumped +21 038...
CFTC Commitments of Traders – Bets on Lower European Currencies Accelerated amidst Power and Supply Chain Crisis
As suggested in the CFTC Commitments of Traders report in the week ended October 5, NET LENGTH of USD index futures rose +5 565 contracts to 32 026. Bets were trimmed on both sides. Concerning European currencies, EUR futures drifted to NET SHORT of 22 334. Speculative shorts rallied...
Yen Crosses Followed Yields Higher Against, Loonie Rode on Oil
Yen was once again sold off broadly last week, following late rally in treasury yields despite disappointing US job report. Resilience in overall risk appetite also kept the Japanese currency pressured. Meanwhile, Euro followed as as distant second worst on selloff in crosses, as well as Dollar. New Zealand...
Dollar Tumbles after Huge NFP Miss, CAD Surges
Dollar tumbles in US session after another huge non-farm payroll miss. On the other hand, Canadian Dollar surges notably after solid employment data. As for the week, the Loonie is now in a pole position to end as the strongest. Yen is still the worst performing, but we'd see...
Yen Weakens, Yields and Stocks Surge, Focus Turns to NFP
Following strong rally in US stocks and treasury yield overnight, Yen is trading broadly lower today, together with Swiss Franc. Yen is also the worst performing one for the week, followed by Euro. On the other hand, Canadian Dollar is the winner for the week, followed by Aussie. Focus...
Euro Stays Pressured in Slow Markets, Risk Appetite Returning
Selloff in Euro remains the main theme in slow markets today. Return of risk appetite is also weighing down Dollar and Yen. On the other hand, commodity currencies are generally strong, with Aussie having an upper hand over Kiwi and Loonie. Sterling is mixed for now, partly supported by...
Euro Weakness Continues in Flip-Flopping Markets
Overall markets continue to be rather mixed for now. Commodity currencies rally in Asian session, as led by Aussie, following rebound in the stock markets. On the other hand, Dollar is turning softer again, together with Yen. Euro's weakness is the more persistent development this week, in particular against...
Dollar Stronger on ADP, Falling Stocks and Rising Yields, Euro Tumbles
The markets are back on risk-off mode again today, while major global treasury yields trade higher. Stronger than expected ADP job data provides little support to over sentiment. Yen is leading the way higher, followed by Dollar and Swiss Franc. On the other hand, despite RBNZ delivering the expected...
RBNZ Hiked Policy Rate for First Time in 7 Years
For the first time in 7 years, the RBNZ increased the OCR by +25 bps to 0.5% in October. Policymakers pledged to tighten further in coming months as inflation pressure continues to exceed target. Policymakers remained hopeful about the economic outlook, suggesting that easing of pandemic-related restrictions could help...
Kiwi Down after RBNZ Rate Hike, Yen Softer on Rising Yields Again
New Zealand Dollar trades mildly lower together with commodity currencies in quiet Asian session. Overall markets are mixed as Japan and Hong Kong stocks head lower, decoupling from the strong rebound in the US overnight. Dollar appears to be supported by the rise in treasury yields, with 10-year yield...
Sterling Rises in Stable Markets, Euro and Swiss Franc Soft
Market sentiment is stable today, with European index trading mildly higher while US futures point to a rebound. But overall direction remains rather unclear. Sterling is currently the stronger one, with additional help from buying against other European majors. Kiwi is also firmer, awaiting tomorrow's RBNZ rate hike, followed...