Market Overview
Euro Soft Awaiting Breakout; Bitcoin Rockets to New Highs
Euro continues to trade on the softer side in an otherwise directionless market. Yet it's holding above its low against Dollar, lacking sufficient momentum for a decisive breakout. Market participants and ECB policymakers are grappling with critical questions regarding the pace at which interest rates should be reduced towards...
Sterling Gains Slightly as UK Inflation Accelerates; Euro Struggles Despite Wage Surge
Sterling posted modest gains today after the UK reported stronger-than-expected rebound in headline inflation for October. More importantly, both core CPI and services price growth also increased, indicating that underlying inflation is gaining momentum.
This resurgence in inflation diminishes the likelihood of BoE implementing another rate cut in December. Market...
Sentiment Stabilization Reverses Yen Gains and Halts Gold’s Rebound
Yen fell broadly during Asian session today, reversing all of this week's earlier gains. Market sentiment has calmed somewhat despite the escalation in Russia's war in Ukraine, as there is no clear intensification toward a nuclear conflict. US Treasury yields have stabilized after yesterday's decline, and Gold's rebound has...
Yen and Swiss Franc Climb as Ukraine War Intensifies on 1000th Day
The European session saw a significant shift toward risk aversion as geopolitical tensions escalated on the 1,000th day of Russia's war in Ukraine. Investors sought refuge in major US and European treasuries, leading to a notable decline in yields. Safe-haven assets such as Gold, Swiss Franc, and Japanese Yen...
Forex Consolidation Continues; Eyes on Canada’s CPI
The forex markets remain subdued in Asian session, with all major pairs and crosses confined within yesterday’s tight ranges, and many still constrained within last week’s bounds. Among the majors, Australian Dollar is showing slight strength supported by hawkish RBA minutes, followed by Swiss Franc and Canadian Dollar. Meanwhile,...
Yen Staying Soft on Rising US Yields, Aussie Vulnerable to Further Declines Ahead of RBA Minutes
The forex markets are largely consolidating today, with no major developments to drive decisive moves. Euro is showing some recovery, but the uptick appears more like a corrective bounce than a reversal. Sterling and Swiss Franc are following similar patterns, with modest strength lacking the momentum needed for sustained...
Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data
Yen weakened broadly during the Asian session today, as traders expressed disappointment with BoJ Governor Kazuo Ueda’s remarks. Ueda repeated familiar stances on monetary policy but refrained from offering any signals regarding a December rate hike. This lack of clarity left markets unimpressed. However, the currency’s losses have been...
Dollar Reasserts Dominance on Fed Expectations and Risk Sentiment
Dollar regained its dominance in the currency markets last week, surging ahead despite US Treasury yields struggling to break through resistance levels. Investors continued to adjust their expectations for Fed's monetary policy, increasingly anticipating a slower pace of interest rate cuts with fewer adjustments in the coming year. This...
Dollar Holds Weekly Lead Despite Fading Momentum Amid Mixed Retail Data
Dollar is trading slightly lower as the market enters the final US session of the week, with mixed US retail sales data failing to provide fresh momentum for the greenback. The currency appears to be taking a breather as the initial impact of the "Trump Trade" begins to fade....
Forex Market Pauses Ahead of US Retail Sales, UK GDP
The forex market entered a phase of relative calm during Asian session today, with major currency pairs and crosses having limited movement. The Dollar softened slightly overnight with to retreat in US Treasury yields, but the losses have been minimal. The greenback found support from Fed Chair Jerome Powell's...
Dollar Gains Capped by 10-Year Yield’s Struggle with Critical Resistance Level
While Dollar extends recent gains following stronger than expected PPI data in early US session, it's upward momentum was somewhat capped by the retreat in treasury yields as their correlation continues. Nevertheless, the greenback is still staying as the strongest one for the day and the week. It remains...
Dollar Gains Momentum on Fed Outlook, Copper Decline Weighs on Aussie
Dollar strengthened broadly overnight, underpinned by the solid rebound in US Treasury yields, while stock markets closed mixed. Stalling disinflation progress, as indicated by the latest CPI data, reinforced the likelihood that Fed will only adopt a gradual approach to lowering interest rates in the future. The aggressive 50bps...
Dollar Softens Slightly Post-CPI; Focus Turns to Aussie Employment Data
US stock futures have jumped in a relief rally following release of October US CPI data, which, while showing an uptick in headline inflation and steady core inflation, stayed within expectations. This in-line report eases fears of an inflation surprise that could disrupt Fed's gradual easing path. Market sentiment...
Dollar Firm as CPI Likely to Confirm Disinflation Stalemate
The financial markets are intently focused today on US inflation data. Expectations are that both the headline CPI and core CPI remained unchanged in October from the previous month's readings of 2.4% and 3.3%, respectively.
This stagnation in disinflation supports the notion that bringing inflation back to Fed's 2% target...
Dollar Extends Rally as Yields Jumps; Euro Weakens on Disappointing Data
Dollar's rally continues broadly today, though most of its strength remains concentrated against European majors. While the greenback holds firm, it remains capped below last week's highs against commodity-linked currencies and Yen. A clear move upwards could only unfold if 10-year Treasury yield breaks past the 4.4% threshold, though...
Dollar Holds Strong Against Europeans, Awaits Fed Insights
Dollar strength and European weakness is currently the main theme in the markets this week so far. The greenback shrugs off strong risk-on sentiment, as reflected in another day of record closes in major US indexes, with strong momentum against Euro and Swiss Franc.
A lineup of Fed officials today...
Renewed US Tariff Concerns and German Instability Hammer Euro
Euro is facing immense selling pressure today as US session commences, driven by both external trade concerns and internal political challenges in Germany. The market is wary of escalation in trade tensions with the US following Donald Trump’s election victory, with reports suggesting that Robert Lighthizer—a trade hawk known...
Yen Pressured by Political Uncertainty and BoJ Rate Hesitation
Yen started the week under notable pressure, facing challenges from both political uncertainty in Japan and a cautious BoJ. A highly anticipated parliamentary vote will decide whether Prime Minister Shigeru Ishiba remains in office. Ishiba's leadership is on the line after his party, the Liberal Democratic Party, lost its...
Dollar at Risk of Extended Correction as Election Volatility Fades
Significant volatility was seen in the global financial markets last week, driven by the highly anticipated US presidential election. Contrary to expectations of a tight contest, Donald Trump secured a comfortable victory over Kamala Harris, with the Republican Party also achieving a "Red Sweep" by taking control of both...
Dollar Rebounds, Suggesting Post-Election Bullish Sentiment Remains Intact
Dollar regained some strength in early US session, after a volatile week marked by high-profile events, including the US presidential election and Fed’s rate decision. The greenback's pullback from its post-election spike now appears to be more of a consolidation rather than reversal of its bullish momentum. However, Dollar...