Market Overview
Dollar Dips on Weak ADP Jobs Data; Markets Await FOMC Outcome
Dollar weakens slightly in early US session, as dragged down by disappointing ADP private sector job data. Despite this, the downturn is contained, as market participants remain cautious ahead of FOMC rate decision later in the day. While no changes in interest rates are anticipated, considerable attention is centered...
CPI Miss Drives Aussie Down, Dollar Sees Modest Rise Pre-FOMC
Australian Dollar encountered significant headwinds in today's Asian session, weighed down by the latest Australian Q4 CPI data. The lower than expected inflation confirmed that RBA would hold interest rate unchanged in the forthcoming meeting next week. The central bank could also be finally ready to indicate completion of...
Euro Recovers as Recession Dodged in Eurozone, Aussie Softens ahead of CPI
Euro recovers broadly today, as lifted by GDP data that indicated the Eurozone economy has narrowly averted a technical recession. This positive development has also led to a notable rebound in Germany's benchmark treasury yields. Meanwhile selling pressure has shifted Sterling and Swiss Franc, both of which are ceding...
Dollar Declines as US Stocks Reach New Record, But Euro Even Weaker
Dollar declined broadly overnight, US Treasury's borrowing plan for Q1 that spurred rally in the stock market, propelling it to new record highs while simultaneously exerting downward pressure on yields. Despite this shift, the greenback remains largely within its recent trading range. Market participants seem to be holding the...
Euro Weakens on Prospects of Early ECB Rate Cut
Euro weakens broadly today amid signals from ECB officials that a rate cut cycle could commence in June, or even earlier in April. This bearish sentiment towards the common currency heightens the significance of upcoming Eurozone economic data releases, with GDP figures tomorrow and CPI data on Thursday poised...
Forex Markets in Slow Motion: Anticipation Builds for Fed, BoE and Crucial Economic Data
Tentative risk-on sentiment is perceptible in Asian session, as Japan's Nikkei rallied with energy shares lifted by rally in oil prices. Concurrently, stock markets Hong Kong are continuing their near-term rebound, reflecting cautious optimism in the region. Nevertheless, this momentum has not translated into significant activity in the forex...
A Week of Contrasts: US Resilience, Hawkish BoJ, ECB Cut Speculations, China’s Reversal
The past week in the financial markets was a blend of the anticipated and the unforeseen, creating a cloud of indecision among traders. Central bank decisions by ECB, BoC, and BoJ unfolded largely as anticipated. But BoJ's slightly hawkish communication provided a temporary lift to Yen. Despite ECB President's...
Dollar Down Mildly after Core PCE Miss, Ready for Breakout?
Dollar falls mildly in early US trading hours, following the release of core PCE inflation data which indicated a slightly sharper than expected slowdown. However, this weakness in Dollar is somewhat counterbalanced by unexpectedly robust growth in consumer spending. Despite these movements, Dollar remains within its established trading range,...
Subdued Trading Continues, Euro Falters as Markets Await US PCE Inflation
The subdued trading in the forex markets observed through the week continued in today's Asian session. Despite numerous central bank decisions and key economic data releases, most major currency pairs and crosses are staying within last week's range. Euro, as the worst performer. so far is a notable exception....
Risk Sentiment Revives on Strong US GDP, Euro Holds Its Ground Against Dollar Post-ECB
Commodity currencies bounce in early US session, spurred by unexpectedly robust US GDP data that has invigorated stock futures. This surge in risk appetite is exerting some pressure on Dollar, although the impact remains relatively contained for the moment. The sustainability of this risk-on sentiment is still in question,...
US Stocks Begin Profit-Taking as Investors Eye GDP; ECB Rate Decision Also Awaited
Range trading continues in most major pairs and crosses for the week so far. Dollar's selloff was relatively short-lived overnight, as US stocks retreated rather deeply after initial rally. There is sign of profit-taking in equities, which could curb any selling pressure in the greenback in the near term....
Sterling Rises Following Encouraging UK PMI Data, Dollar Weakens Across the Board
Sterling rises notably against Euro and Dollar today, buoyed by encouraging UK PMI data that pointed to a strong start for the year with renewed growth momentum. More importantly, this data suggests that BoE might need to delay its rate cut plans, as inflationary pressures could potentially resurge due...
Forex Markets Hesitant, Eurozone and UK PMIs, BoC in Focus
The forex markets are currently extending a phase of indecision. Dollar, after briefly rallying against Euro and Swiss Franc, saw its gains diminish. Australian Dollar's initial surge, fueled by optimism over China's proposed stock market rescue plan, also quickly dissipated.
Presently, Japanese Yen emerges as the strongest currency for the...
Forex Markets Lack Clear Theme; Yen Rebounds Briefly, EUR/GBP Resumes Downtrend
Identifying a singular driving theme proves challenging In today's forex market. Japanese Yen made an attempt to rebound following BoJ Governor Kazuo Ueda's post-meeting press conference, where he hinted at the potential of a future rate hike. However, this rebound was short-lived, and Yen soon reverted to its familiar...
Yen Steady After Brief Ripples from BoJ, Dollar Softens Mildly
Yen weakened momentarily after BoJ left monetary policy unchanged as widely expected, but swiftly regained stability. This quick recovery underscores the market's assessment that the conditions for a BoJ rate hike in April remain intact. This viewpoint is bolstered by unchanged CPI core-core forecast, which holds steady at 1.9%...
Yen Strengthens Modestly Ahead of BoJ Decision; Forex Markets Quiet
Yen trades mildly firmer in tight range today, as markets are now keenly awaiting BoJ rate decision in the upcoming Asian session. No change in monetary policy is expected as BoJ should stick to negative interest rate for now. There is also no need to tweak the parameters of...
Contrasting Trends in Asia; BoJ, BoC and ECB to Highlight a Busy Week
Asian markets highlights sharp divergence in trends today. Nikkei surged to new 34-year high, buoyed by last week's record closes in US and bolstered by expectations that BoJ will maintain its negative interest rate policy in the this week's meeting. Japanese stock market is also riding on the optimism...
Dollar Soars and Stocks Hit Records as Markets Rethink Rate Cut Timing
Last week's market development suggest growing skepticism among traders on their own aggressive bets on early rate cut by major central banks. After a batch of economic data from US and UK, as well as the chorus of central banker comments, Q2 is starting to look much less likely...
Sterling Sees Moderate Decline After Weak Retail Sales, Losses Contained
Sterling fell broadly today following weaker-than-expected retail sales data. Despite this, the British currency's losses have been somewhat contained, indicating a degree of resilience. Concurrently, Japanese Yen and Australian Dollar are showing attempts to recover, but these efforts lack significant follow-through momentum. The day's activities seem more reflective of...
Yen’s Decline Persists Following Japan CPI Release, Dollar Upholds Its Lead
Yen' decline resume today after release of Japan's latest CPI data, which suggests that BoJ is not be under immediate pressure to exit its negative interest rate policy. . Economists have noted a crucial aspect of Japan's inflation dynamics: while cost-push inflation is clearly easing, the transition to demand-pull...