Market Overview
Sterling Soft as Risk Rally Pauses, Focus Turns to PMIs
Dollar recovers mildly in Asian session, together with Yen, as stock rally takes a breather again. But both remains the worst performing over the week. Similarly, Australian and New Zealand Dollars also retreats mildly but remain the strongest one for the week. Investors are generally optimistic on return to...
Sterling Softens after UK Sold Bonds With Negative Yield
Sterling weakens mildly today after UK sold government bond with a negative yield for the first time ever. According to the Debt Management office, It auctioned GBP 3.75B of 3-year bonds at an average rate of -0.003%. Demand was weak too with bid-to-cover ratio at 2.15, lowest since March....
Dollar and Yen Soft, Awaiting Next Move in Risk Markets
While risk market retreats mildly, the developments in currency markets are unchanged. New Zealand and Australian Dollar remain the strongest one for now. In particular, Kiwi is lifted a bit further by RBNZ governor's comment that it doesn't want to go to negative rates for now. Aussie somewhat shrugs...
Euro Surges of Recovery Fund Hope, Yen Tumbles
Yen, Dollar and Swiss Franc remain generally weak today eventual risk rally starts to take a breather in European session. On the other hand, currency market have some what shifted from commodity currencies to Euro and Sterling. Euro is lifted by optimism on the Franco-German recovery fund plan. Sterling...
Sterling Soars on New UK Tariff Regime, Broad Based Risk Appetite Continues
Sterling surges notably today after UK announced new tariff regime after Brexit, allowing 60% of trade to be tariff free. In the background, markets are supported by solid risk appetite, on coronavirus vaccine optimism. New Zealand and Australian Dollar are both strong together with the Pound. On the other...
Investor Cheers Coronavirus Vaccine news, Risk On
Global stock markets surge sharply today on optimism that coronavirus vaccine research took another big step. New Zealand Dollar leads commodity currencies generally higher. On the other hand, Yen, Dollar and Swiss Franc are under broad based pressure. Gold also retreats notably back below 1750 in the risk-on markets....
Sterling Weak of Negative Rate Talks, Gold Extending Up Trend
Sterling stays generally weak as another week starts. The Pound was weighed down by comments from BoE chief economists Andy Haldane, who said that negative rate was "something we'll need to look at – are looking at – with somewhat greater immediacy." Dollar is also slightly softer with mild...
Negative Interest Rate Expectations Drove Markets, Risk Reversal TBC Soon
The topic of negative central bank interest rates was a key driver in the forex markets last week. Dollar ended as the strongest one against a chorus of Fed officials expressed their objection. New Zealand Dollar, on the other hand, ended as the weakest as RBNZ was clearly preparing...
Dollar Down Again of Record Retails Sales Fall, Gold Shines
Dollar weakens notably in early US session after retail sales data showed another record decline in April. Stock futures also tumble after the news In particular, gold rides on the greenback's selloff and it's set to resume larger up trend. . Nevertheless, for the day, New Zealand, Australian Dollar...
Dollar Rally Fades While Gold and Oil Rise
Gold and oil price strengthen notably in otherwise rather mixed markets. US stocks reversed initial losses overnight and closed higher. Asian markets also follow and are trading up slightly. In the currency markets, Canadian Dollar is currently the strongest one for today, thanks to oil price. Sterling and Yen...
Dollar Lifted as Trump Said Strong Dollar Now is Great, Markets in Risk Aversion Too
Dollar and Yen continue to be the strongest ones for today with help from risk aversion. Global stocks generally show weakness, from Asia to Europe to US futures. Major benchmark treasury yields also decline. The greenback is given another lift as US President Donald trump's comments. On the other...
Stocks Weighed Down By Fed Powell, Yen and Dollar Back in Control
Yen and Dollar are back in control today as Asian markets turned red, following weakness in the US overnight. Fed Chair Jerome Powell's comments somewhat disappointed investors. Australian Dollar weakens in general after data showed record contraction in employment. Though, Sterling is the worst one as it stays pressured...
Dollar Dips on PPI, Supported by Fed Powell
Dollar stays generally soft today so far but weakness is relatively limited. Some selling pressure was seen as poor PPI inflation data. But Fed chair Jerome Powell's comments on negative interest rates is giving the greenback a slight pop. For now, New Zealand Dollar remains the worst performing one...
Kiwi Dives after RBNZ, Fed Officials Talk Down Negative Rates
New Zealand Dollar drops broadly today following RBNZ's decision to nearly double the QE program, and indicates its openness to negative rates. Australian Dollar is following as a distant second weakest. The sharp decline in US stocks overnight doesn't carry forward to Asian markets. Other major currencies are relatively...
Dollar Tumbles on Record Core CPI Decline, and Improving Sentiments
Dollar is sold off notably in early US session after data showed record decline in core inflation reading. In the background, sentiments also improved mildly on WHO's "potentially positive data" comments. Following Dollar, Canadian is the second weakest for the day, then Yen. On the other hand, New Zealand...
Aussie Softens on Trade Tensions with China, Loss Limited
Asian markets started with mild risk aversion today but sentiments quickly stabilized. Australian Dollar is pressured after China bans four of its abattoirs, but there is no follow through selling afterwards. While the Aussie is staying soft, it's holding generally above yesterday's low for the moment. Canadian Dollar is...
Dollar Rebounds Broadly as Investor Sentiment Turns
Dollar rebounds broadly today as investors turn cautious since European session. Fear of a second wave of coronavirus pandemic is cited by some as a reason for mild risk aversion. US-China tension is another factor named. For now, Swiss Franc is following as the second strongest, then Euro. On...
Yen Tumbles as Markets Return to Risk Appetite
Return to risk appetite is a main theme in the markets as another week starts. Another rate move by China's PBoC support sentiments in general. Yen drops broadly as a result while Canadian and Australian Dollar strengthen. Though, New Zealand Dollar is somewhat under pressure ahead of this week's...
Risk Rally Inconclusive, Dollar Index and Gold Range Bound
Global stock markets somewhat strengthened last week as most countries continued with their coronavirus lockdown exit plan. Yet, with the exception of NASDAQ, major indices were capped below prior week's high. Tensions between US and China remained a major focus. News flows on the topic were confusing. US Trade...
Markets Shrug Record Labor Down Turn, Dollar Soft With Yen on Risk Sentiments
Economic data from the US shows the sharpest labor downturn in history due to coronavirus pandemic. Yet, the financial markets have little reactions to the terrible data. US futures are pointing to higher open while European indices are in black. Investors are somewhat relieved by a formal statement by...