Market Overview
Yen Softens Further on Yields, Euro to Test Resistance Levels
Yen is trading with an undertone today despite mixed risk markets. Treasury yield is a factor weighing on Yen again, with US 10-year yield staying firm around 0.73 handle. Germany 10-year is also back above -0.4% handle. US stocks open slightly lower, following mild weakness in Europe, but that's...
Yen Softens as Nikkei Rebound, Busy Week Ahead
Yen softens mildly in quiet Asian session, accompanied by the rebound in Nikkei, as markets digest Prime Minister Shinzo Abe's resignation. Dollar is also paring some of last week's steep losses. But overall, major pairs a crosses are bounded in very tight range. Economic data from Japan and China...
Dollar Dived on New Fed Strategy, Aussie Shone ahead of a Key Week
Dollar tumbled sharply, and broadly last week as markets perceive Fed's adoption of average inflation targeting as a dovish move. Nevertheless, selloff were mainly against commodity currencies and, to a lesser extent, Sterling. The greenback ended in range against Euro, Swiss Franc and Gold. Even Gold just gyrated inside...
Dollar Shrugs Income and Spending Report, Selloff Continues
Fed chair Jerome Powell inspired a fresh round of Dollar selloff which his Jackson Hole speech, which carries on to today. Stronger than expected personal income and spending, as well as core inflation reading provide little support. Though, for now, the decline appears to be mainly centered against commodity...
Yen Down on Surging Yield, Rebounds on Abe Resignation Talks
Dollar spiked lower overnight after quickly stabilized, as supported by surge in treasury yields. Fed Chair Jerome Powell announced that adoption of "average inflation targeting". That goes beyond the "symmetric" targeting, and allows inflation to overshoot to average out at 2% over time. While there was some initial jitters...
Dollar Tumbles as Fed Adopts Average Inflation Targeting to Allow Inflation Overshoot
Dollar appears to have finally taken a side, the downside, with Fed chair Jerome Powell's Jackson Hole speech. In short, Fed is now adopting a "flexible form of average inflation targeting", to achieve inflation that "averages 2 percent over time". Therefore, following periods when inflation has been running below...
Dollar Softer in Mixed Markets, No Decisive Selling Yet
Markets continue to be rather mixed as investors are awaiting Fed Chair Jerome Powell's speech at the Jackson Hole symposium. S&P 500 and NASDAQ surged strongly overnight to new record highs. But Asian markets are mixed, with weakness seen in Japan, Hong Kong and Singapore. Dollar weakens broadly today...
Dollar Surges on Strong Durable Goods Orders, Gold Tumbles
Dollar surges broadly in early US session in response to much better than expected durable goods order data. Yet, it's actually still held well below near term resistance level to confirm bottoming. Gold's decline is a positive sign for the greenback and we'll see if there is following buying....
Range Trading Continues With Eyes on Gold, Oil and Yields
The forex markets continue to stay in rather tight range today, shrugging off strong movements in the stock markets. Yen is generally soft but there is no sign of breakout yet. Similarly, Dollar is also struggling to find a clear direction, staying as the second weakest for the week...
Euro Rises on German Data, Yen Tumbles Broadly
European majors, as well as stock indices, are boosted by better than expected Germany business sentiments, as well as small than expected Q2 GDP contraction. There were talks that investors welcomed the US-China trade phone calls. But judging from the decline in China and Hong Kong stocks, that might...
S&P 500 Hit Record, Forex Markets Yawn in Range
Coronavirus vaccine optimism sent US stocks to record high overnight but the positive sentiments are not carried forward to Asia. The forex markets are also treading water, with major pairs and crosses stuck inside last week's range. US and Canadian Dollars are the relatively weaker ones while European majors...
Vaccine Hopes Boost Sentiments, Dollar and Yen Down
Global markets surge broadly today on more optimism on coronavirus treatment. S&P 500 and NASDAQ are both set to extend recent record runs. Yen and Dollar are back under some selling pressure, but New Zealand Dollar is not far away. On the other hand, Australian Dollar is currently the...
Kiwi Lower as Lockdown Extends, Dollar Mixed Awaiting Jackson Hole
Canadian and Australian Dollar trade generally higher today, following mild strength in Asian stocks. But New Zealand Dollar diverges from them as the country extends lockdown of Auckland until Sunday night. Following Kiwi, Swiss Franc and Yen are the next weakest in risk-on markets. Dollar is mixed and could...
Euro Tumbled as Optimistic Investors Reassess Outlook, Turning Around?
Euro ended as the worst performing one last week as investors could have started to reassess the economic outlook. As ECB meeting accounts pointed out, recent positive market developments were "not fully backed by economic data". Indeed, they might be based on "overly optimistic expectations" about the Next Generation...
Euro and Sterling Plummets on Brexit Deadlock, Yen Surges
European majors tumble broadly today as UK and EU reminded us that Brexit negotiation remained in deadlock. Additionally, some PMI data from Eurozone suggested that momentum of recovery was quickly fading, in particular in the services sector. Yen is rising broadly today as stock markets turn into risk-off mode....
Dollar Weakens Again as Rebound Falters, PMIs Watched Today
Dollar is back under pressure as rebound attempt faltered quickly again. Nevertheless, New Zealand Dollar remains the worst one. Canadian Dollar is currently the strongest one in Asian session, lifted as crude oil rebounded quickly after a spike lower overnight. As for the week, Sterling and Yen are currently...
Sentiments Turn Cautious after ECB and Fed Minutes, Aussie and Kiwi Tumble
Global financial markets seemed to have turned into risk-off mode today, after both Fed and ECB sounded very cautious regarding economic outlook in their minutes. Swiss Franc extended recent volatility trading and gains broadly, followed by Sterling and Yen. On the other hand, New Zealand Dollar completed this week's...
Dollar Rebounds but Reversal Not Warranted Yet, Gold and Stocks Fall
Dollar staged a strong rebound overnight, reversing all of prior day's losses. The uninspiring FOMC minutes were a lift in a way that it provided no dovish elements for further selloff. Yet, the greenback is kept well below near term resistance levels against all major currencies. It also remains...
Focus Turned to Swiss Franc Selloff While Dollar Stabilizes Mildly
Selling focus turns from Dollar to Swiss Franc today, which also drags down Sterling, and to a lesser extent Euro. Dollar stabilized a little bit but there is apparent strength for recovery yet. In particular, commodity currencies are generally stronger while Canadian Dollar shrugs off weaker than expected inflation...
Dollar Stays Pressured ahead of FOMC Minutes, Gold Retreats
Dollar remains generally pressured today even though selling momentum seems to be easing a little bit. A focus will be on FOMC minutes which is unlikely to provide anything about the next policy move. Instead, investors would be more eager to know how Fed would shape the results of...