Market Overview
Franc and Euro Falter, Yen Strengthens as Risk-Off Returns
Both Swiss Franc and Euro are under some selling pressure today, especially against Sterling. The Franc suffered after SNB Chair Martin Schlegel signaled the willingness to reintroduce negative interest rates if deflationary risks persist. Meanwhile, Euro came under pressure as fresh political instability emerged in Germany
CDU/CSU leader Friedrich Merz’s...
Dollar and Loonie Soft Ahead of Carney-Trump Meeting
Dollar remains on the soft side today, although losses are so far limited. Currency market activity is subdued as traders remain cautious ahead of the upcoming FOMC rate decision. While no policy changes are expected from the Fed tomorrow, markets are watching closely for any forward guidance. Notably, expectations...
Muted Major FX Action Masks Big Moves in Asia; Gold Rebound Gather Momentum
The currency markets remain subdued in early trading this week, with the exception of a broad, mild Dollar weakness. Among the major currencies, movements have been muted despite notable developments. Swiss inflation falling back to 0% has increased pressure on the SNB to cut rates further to avoid deflation,...
Dollar Slips in Holiday Trade, Fed and BoE in Focus This Week
Dollar drifted lower in subdued trading, with many Asian markets closed for holidays. Movements in the currency markets elsewhere were mixed. Traditional safe havens like Yen and Swiss Franc inching higher. But at the same time, risk-sensitive currencies such as Australian and New Zealand Dollars also advanced. Overall risk...
Risk-On Sentiment Regains Control as Data Downplays Severity of Tariff Shock
Global risk sentiment continued to improve last week, with major equity indices staging robust rallies as investor anxiety over the fallout from tariffs eased. The solid US non-farm payroll data was a key turning point, reassuring markets that the early economic impact of the trade shock was not as...
Markets Cheer Solid NFP, Tariff Fallout Appears Milder Than Feared
Risk assets are rallying to end the week as investors take comfort in the stronger-than-expected US non-farm payroll report. The data helped to offset recession concerns after surprise Q1 GDP contraction. While the GDP miss raised alarms, it was largely attributed to a surge in imports ahead of the...
Markets Lifted by US-China Trade Thaw Hopes, But All Eyes on US Jobs Report
Markets trade on a cautiously optimistic in Asian session, supported by fresh signs that US-China trade tensions may be starting to thaw. China's Commerce Ministry said the US has repeatedly expressed interest in reopening negotiations, adding that Beijing is "evaluating" these overtures. This marks the most constructive public tone...
FX Markets Hold Range While Yen Extends Slide
Yen weakness remains the dominant theme in an otherwise range-bound forex market today. While all other major pairs and crosses are contained within yesterday’s trading range, the Japanese currency continues to lose ground as traders react to BoJ’s dovish tone. Governor Kazuo Ueda attempted to soften the impact of...
Yen Slides as BoJ Slashes Growth Outlook; Investor Resilience Faces ISM Test
Yen weakened broadly today following the BoJ’s decision to leave interest rates unchanged, while significantly downgrading its growth projections for the current fiscal year. Inflation outlook was also softened, with risks of undershooting the 2% target increased, albeit slightly.
This backdrop suggests that while BoJ remains on a slow tightening...
Risk Sentiment Sours on US GDP Contraction, Recession Fears Mount
Risk sentiment soured as US session commenced after data showed the economy unexpectedly contracted in the first quarter. Although the decline was heavily influenced by a surge in imports, which mechanically subtract from GDP calculations, the result still serves as a stark reminder that economic momentum was already faltering...
Markets Ignores Trade News Ahead of Data Barrage; Aussie Outperforms
Global financial markets are largely steady ahead of a packed economic calendar, with traders bracing for volatility as Eurozone and US GDP figures, as well as US PCE inflation data, are due shortly. Despite negative signals from China’s latest PMI reports, and another round of trade headlines, market reactions...
Aussie Inflation Set to Cement RBA May Cut; Month-End Calm Prevails
The forex markets are generally holding steady today, with all major pairs and crosses bounded within yesterday's range. While month-end lull is at play, caution is also dominating sentiment as traders prepare for a heavy barrage of economic data scheduled from Wednesday through Friday. Key reports include US GDP...
Markets Steady as Trade Headlines Stir Little Reaction
Global trading remains subdued, with Japanese markets closed for Showa holiday and investors showing little urgency to take new positions. Canadian dollar saw some choppiness following election results, where the ruling Liberal Party retained power but fell short of a parliamentary majority. Despite the initial volatility, Loonie remained largely...
Markets Stay Subdued Ahead of Big Data and Earnings; Trade Talks Remain in Focus
Trading remains notably subdued across global financial markets today as investors adopt a cautious stance. On deck are quarterly earnings from four of the "Magnificent Seven"—Amazon, Apple, Meta Platforms, and Microsoft. On top of that, key releases including US and Eurozone GDP, US non-farm payrolls, and Eurozone CPI flash...
Subdued Start to a Heavy Data Week with Risk Sentiment Holding Steady
Trading was particularly subdued today, even by the quiet standards of a typical Monday in Asia. That’s not surprising, given the near-empty economic calendar offering little to move the markets. Instead, traders are exercising understandable caution ahead of a heavy barrage of important data releases later this week, including...
Global Risk Sentiment Brightens, But Caution Lingers Around US Assets
Global risk sentiment showed further improvement last week, with stock markets around the world posting impressive gains. Although headlines continued to focus on the confusing state of U.S.-China trade tensions, there was quiet but notable progress on multiple trade fronts, including US talks with Japan, South Korea and India.
US...
Markets Steady as US Yields Dip Amid Continuous Tariff Rumors
Global financial markets are relatively stable heading into the end of the week, with risk appetite showing further signs of improvement. European equities are trading modestly higher, following rebounds seen earlier in Japan and Hong Kong. However, US futures are slightly in the red despite strong earnings reports from...
Glimmers of Trade Optimism Lift Asian Markets, But Concrete Progress Still Elusive
There’s a cautious tone of optimism in Asian markets today, though gains are largely concentrated in Japan, South Korea, and Hong Kong. This moderate rally is being supported by a handful of headlines suggesting incremental movement in global trade diplomacy, even if concrete progress remains limited.
One of the more...
Dollar Rebound Stalls as US-China Trade Talks Hit a Wall
The forex markets remain subdued today, with all major pairs and crosses trading inside yesterday's range. After a brief bounce, Dollar’s recovery appears to be losing momentum. While it’s too soon to confirm whether the rebound has fully run its course, fading trade optimism is clearly starting to weigh...
Markets Pause After Relief Rally, Bessent Tempers De-escalation Optimism
Markets are treading water in the Asian session today, with most asset classes trading mixed and within familiar ranges. While US equities closed higher overnight, much of the early gains were pared back, signaling the fragility of the current risk-on mood. The price action reflects what is often seen...