Market Overview
Worsening Inflation, Dovish Central Banks and Falling Treasury Yields
Yen and Dollar were the biggest winners last week on worsening inflation outlook, dovish central banks and falling treasury yields. Australian Dollar was the weakest one as CPI just rose 1.3% yoy in Q1 versus expectation of 1.5% yoy. The added heavy weight to the case of RBA rate...
Strong US GDP With Weak Details Send Dollar Lower, 10-Yr Yield Breaks 2.5
Dollar spikes higher in early US session as Q1 GDP grew much more than market expectations. However, the greenback quickly pulled back as details are seen as much weaker than the headline number suggests. It's actually a set of data welcome by stock traders as Fed will likely stay...
Dollar and Yen Pare Gains as Focus Turns to US Q1 GDP
Commodity currencies recover broadly in Asian session as risk markets somewhat stabilized. US stocks closed mixed with DOW paring much of initial losses overnight. New Zealand Dollar is additional supported by record exports in March, and helps lift Australian too. Yen is the weakest so far for today, followed...
Strong Durable Goods Fail to Boost Dollar, Yen Taking the Driving Seat
Yen takes the driving seat from Dollar today as markets could be turning into risk averse mode. The greenback is still firm and remains the second strongest for the week. But strong US durable goods orders is not giving it enough boost to extend this week's rally. On the...
Dollar Surges on Flight to Quality Flows, EUR/USD Breaks Key Support
It appears that the global economy is now running at two different speed. US is maintaining firm momentum despite all the uncertainties and slowdown elsewhere. Strong corporate earnings provide evidence on underlying resilience. While global central banks are turning cautious or even dovish, there is little pressure for Fed...
Euro Weakens as German 10-Year Yield Threatens to Turn Negative, Swiss Franc Rebound
Swiss Franc regains much ground today in mixed financial markets. Optimism over US corporate earnings had virtually no impact in Asian and European markets. Instead, European stocks turned mixed after German Ifo business confidence turned south again after brief recovery last month. German 10-year yield also suffers rather steep...
Australian Dollar in Free Fall after Big CPI Miss, BoC Watched Today
Australian Dollar is overwhelmingly the worst performing one today. It suffers heavy selling after much weaker than expected CPI raises the chance of RBA rate cut later this year. New Zealand Dollar follows as second as RBNZ is also expected to cut, just probably earlier in May. Canadian Dollar...
Dollar Surges Broadly on Earning Optimism, Gold Extends Decline
Dollar rises broadly in early US session as traders seem preparing for solid Q1 earnings reports in US. Stocks indices are relatively steady, though, with DOW, S&P 500 and NASDAQ up slightly in initial trading. But after all, improvement in the overall sentiments could revive the chance for a...
Forex Markets Tread Water as Impact of Oil Rally Fades
The forex markets remain relatively quiet in Asian session today. Canadian Dollar surged briefly yesterday as lifted by rally in oil price. WTI crude oil remains firm in at 65.80, after rising on news that US is ending Iranian oil sanction wavier for eight countries. But the boost to...
Canadian Dollar Pulled Higher by Oil, But Cautious ahead of BoC
Canadian Dollar open the week generally higher, as helped by strong rally in oil price, on supply concern. Though, the Loonie is generally bounded in range only. BoC rate decision and statement this week will be crucial to the next move. For now, risks are mildly on the upside...
Strong Retail Sales and Jobless Claims Boost Dollar, But Yen Outperforms
Dollar jumps broadly in early US session after very strong retail sales and jobless claims. Yen is the only one stronger than the greenback, thanks to pull back in global treasury yields. Euro, as well as benchmark German yield tumble as poor PMIs dent hope for a recovery in...
Eurozone PMIs, Retail Sales from UK, US and Canada Watched
Asian markets turned softer today, ahead of long weekend. Major indices are trading in slightly in red as traders lighten up positions. In the currency markets, Yen is so far the strongest one for today, naturally. Australian Dollar is the second strongest, as lifted slightly by solid employment data....
Canadian Dollar Jumps on CPI, Treasury Yields Rise on China Data
Global treasury yields are boosted by solid data from China today. German 10-year yield hit at high as 0.104 and is now back at around 0.08. US 10-year yield breaches hit 2.614 and it's now trying to own 2.6 handle. These are both signs of improvements in market sentiments...
Aussie Lifted by Strong China Data, Kiwi Tumbles on CPI and RBNZ Bets
Australian and New Zealand Dollars have very different fortunes today. Aussie was boosted higher by stronger than expected Chinese data. On the other hand, Kiwi dived as weaker than expected CPI raises the chance of RBNZ rate cut at next meeting. In between, Euro is the second strongest so...
Funds Flowing Out of Safe Haven Swiss Franc, Gold and Bonds
Funds are flowing out notably from safe haven assets today. Gold dives through 1280 handle and is resuming fall from 1346.71 high. German 10-year yield is up for another day at 0.067. US 10-year yield is also trading stronger at 2.575, possibly targeting 2.6 handle. In the currency markets,...
Australian Dollar Tumbles on Dovish RBA Minutes, New Zealand and Canadian Also Weak
Commodity currencies are generally under some selling pressure today. Australian Dollar is the weakest one as RBA took another step to laid the ground for rate cut by dovish minutes. RBNZ Governor Adrian Orr reiterated the central bank's easing bias. Canadian Dollar was sold off overnight after poor Business...
Forex Markets Turn Mixed as Risk Appetite Cools, More Inspirations Needed
The forex markets turn relatively mixed today and markets lack a general direction. Risk appetite appeared to be firm earlier in Asian session but quickly faded. Major US indices open the day mildly lower. While German 10-year yield is trading up at the time of writing, US 10-year yield...
Risk Appetite Lifted by More US-China Trade Optimism, Eurozone and China Data Watched This Week
Dollar trade mildly lower in Asian session after more verbal attack on Fed by Trump. Australian Dollar follows as second weakest, paring some of last week's gains. On the other hand, New Zealand Dollar is the second strongest one, followed by Sterling. But after all, all major pairs and...
Yields Surged, Yen Tumbled on Receding Global Risks
The financial markets were generally dominated by positive sentiments last week. Major global economic risks seemed to be receding generally, even though some uncertainties remain. The development was best seen in the strong rally in treasury yields. US 10-year yield closed the week up 0.059 at 2.56, above 2.554...
Global Sentiments Boosted by Rebound in Chinese Exports, German & US Yields Surge
Global market sentiments appeared to be given a strong boost by trade data from China. The much larger than expected rise in export is seen as positive sign of global demand. While there were some weak spots in the set of data, investors are enjoying the rally anyway. The...