Market Overview
Dollar Struggles to Keep Momentum in Indecisive Markets
In the forex market, clear weakness of Yen, Swiss Franc, and Kiwi contrasts with a broader sense of indecision elsewhere. Dollar's rally attempt quickly lost momentum as it struggled to break through near-term resistance levels against both the Euro and Sterling. Additionally, the greenback remains stuck within familiar ranges...
Dollar Rallies as Treasury Yields Surge With Trump’s Election Prospects
Dollar surged across the board overnight and stayed firm in Asian session, fueled by the strong rally in benchmark US Treasury yields. This rally is partly attributed to rising expectations of a Donald Trump victory in the upcoming presidential election. Analysts suggest that a Trump win would likely lead...
Euro Rebound Stalls as Sterling and Dollar Mount a Comeback
Euro has seen a notable rebound as the new week commenced, though the lack of follow-through buying momentum is evident. The initial results from French parliamentary elections were not as dire as investors had feared. The far-right National Rally's victory was not as overwhelming as anticipated. However, significant uncertainty...
Euro Rebounds on French Election Relief; Market Eyes Central Bank Minutes and Key Data
Euro is staging a solid rebound today, with investors feeling somewhat reassured by the preliminary results of French parliamentary elections. While the far-right National Rally made significant gains with approximately 34% of votes in the first round, this is insufficient for an outright majority in the second round scheduled...
Yen Hits Multi-Decade Lows, Euro Bounces Back, Dollar Remains Indecisive
Yen remained in the spotlight last week, dominating headlines even as some significant global inflation data also moved markets. The Japanese currency continued its downtrend, reaching multi-decade lows. Despite the prolonged decline, Japanese authorities refrained from intervening directly in the markets. However, the looming threat of intervention kept traders...
Dollar Dips Slightly on PCE Core, But Overall Market Reactions Subdued
Dollar dips slightly in early US session, following the release of May's PCE core inflation data. This Fed's preferred measure of inflation indicated a continued, though modest, progress in disinflation. However, the financial market's response to the report was overall relatively muted, as the figures aligned closely with expectations.
While...
Dollar Gains Traction Ahead of Key Inflation Data, Yen Struggles Despite Stronger Tokyo CPI
Dollar is showing renewed strength in Asian session, particularly against commodity currencies. Market reactions to the televised debate between US President Joe Biden and former President Donald Trump have been muted, with traders shifting their focus to upcoming inflation data.
Both headline and core PCE inflation are expected to dip...
Dollar Weakens after Mixed Data, Traders Turn Cautious
Dollar weakens broadly weakening in the early US session following the release of a batch of economic data. Durable goods orders presented a mixed bag. Concurrently, continuing claims for unemployment benefits rose to their highest level in more than two-and-a-half years. Despite these indicators, there is no immediate cause...
Yen Recovers as Japan Steps Up Verbal Intervention, But No Sign of Lasting Bottom Yet
Yen is showing broad-based recovery today, although the momentum remains weak, following its decline to the lowest level against Dollar since 1986. Japan has finally stepped up its verbal intervention efforts again, with Finance Minister Shunichi Suzuki expressing a "high sense of urgency" regarding Yen's depreciation. Suzuki pledged to...
Yen Hits 37-Year Low Against Dollar, Japan to Intervene or Not?
Yen is drawing significant attention again today as it plummeted past the crucial 160 mark against Dollar, and hit its lowest level in over 37 years. Market participants are vigilantly watching for any signs of intervention from Japanese authorities, yet no action has been taken so far. It should...
Strong Inflation Boosts Aussie, Euro Struggle Returns
Australian Dollar surged broadly in Asian session following a much stronger-than-expected monthly CPI report, sparking speculation that RBA might return to rate hikes in August. Comments from a top RBA official also indicated that the central bank is vigilant about upside risks to inflation. The upcoming inflation reports for...
Canadian Dollar Surges on Unexpected Inflation Rebound in May
Canadian Dollar jumps following after data showing that Canadian inflation unexpectedly accelerated in May. More importantly, the resurgence in price pressures was largely driven by significant increase in services inflation. The data aligns with BoC Governor Tiff Macklem's cautious stance that the central bank should not ease monetary policy...
Canadian CPI Takes Center Stage; Yen Stabilizes in Quiet Trading
Trading in the Asian session has been quiet today and is expected to remain so during the European session, given the empty economic calendar. However, Yen continues to be a significant focus among market participants. Discussions are emerging about the possibility of USD/JPY surging through the 160 level, which...
Yen Rebounds from 160 Level, Euro Gains but Political Risks Remain
USD/JPY attempt to break through the critical 160 level was unsuccessful for, as Yen recovered during a relatively quiet European session today. Although Yen surged briefly, there was no sustained selloff below the 159 mark against the greenback. The scale of the movement makes it challenging to determine if...
Japan’s Inaction and Refrained Rhetoric Lead to Speculation on New Intervention Threshold
Yen recovered mildly in quiet Asian session along with the Swiss Franc, driven by mild risk aversion in the region. Despite this uptick, there is no strong indication of a significant rebound for the Japanese currency following its sharp decline last week. Notably, Japan did not utilize the thin...
Yen’s Plunge Puts Japan’s Intervention Resolve Under Scrutiny
Yen ended as the runaway loser last week as its decline reaccelerated towards the end. With the crucial 160 level against Dollar now within reach, market participants are keenly watching to see if Japan will intervene soon to prop up the Yen, or just let it depreciate further.
Swiss Franc...
Euro and Sterling Fall on Weak PMI Data
Euro fell notably today, along with decline in Eurozone government bond yields, following weaker-than-expected PMI data. Political instability in France is negatively impacting business activity, while Germany's economic recovery has lost momentum. At the same time, surge in Germany's services inflation pressures suggests that ECB is unlikely to implement...
Yen Approaches 160 Against Dollar, Will Japan Tolerate a Move to 165 or 170?
Yen is under intense scrutiny today as it continues a six-day losing streak, approaching the key psychological level of 160 against Dollar. This move comes despite Japan's core inflation reaccelerating in May, but failed to meet market expected pace. Additionally, core-core CPI, which excludes both food and energy, and...
Swiss Franc Plummets After SNB Rate Cut, Sterling Weakens Following BoE Hold
Swiss Franc is currently the worst performer today, plummeting after SNB delivered a rate cut for the second consecutive meeting. In addition to the rate reduction, SNB lowered its inflation forecast across the board. Nevertheless, Franc's selloff has been relatively restrained.
Notably, SNB did not mention the recent sharp appreciation...
Markets Await SNB and BoE Decisions, Gold Bounces Higher
As markets await rate decisions from SNB and then BoE today, both Swiss Franc and Sterling are trading largely within established ranges. SNB's decision is particularly uncertain, with a close call on whether they will implement a second consecutive rate cut. If SNB opts to hold rates steady, Swiss...