Market Overview
Sentiments Boosted by Trump and Draghi, But Traders Hold Their Bets ahead of FOMC
Market sentiments were given two strong boosts yesterday, first by ECB's indication of monetary stimulus ahead, then by renewed optimism of US-China trade negotiations. Positive sentiments carried forward to Asian session, with strong rally seen in major indices. Though, reactions in currency markets are relatively "refrained" as traders are...
Euro Tumbles, German Yield Hits Record Low as ECB Prepares for More Easing
Surprisingly dovish comments from ECB President Mario Draghi sent Euro sharply lower, and German 10-year yield to new record low today. There are some speculations that ECB could eventually cut interest rates, with a tiered system", alongside released of new economic projections in July. The comments also send German...
Australian Dollar Tumbles on Dovish RBA Minutes, Sterling Weakens Too
Australian Dollar drops broadly today after RBA minutes confirm that more rate cuts are underway. Additional, worse than expected house price data gives the Aussie more selling pressure. Sterling is not far away as second weakest, ahead of the next round of UK Conservative leadership voting today. For now,...
Euro Rises on Strong Wage Growth, Dollar Softens on Weak Data
Euro strengthens broadly in mixed forex markets today. Record wage growth in Q1 is a factor under-pinning the common currency. Poor US economic data also helps. But at this point, strength mainly centers in crosses, against Aussie most notably. Meanwhile, New Zealand Dollar is the second strongest one for...
Dollar Firm as Markets Skeptical on Fed Insurance Rate Cut Path
Dollar remains generally firm in quiet Asian markets today. The greenback continues to be supported by expectation that FOMC won't deliver any "insurance" rate cut this week. Instead, Fed policy makers will look at the upcoming developments before making a decision, in particular the result of G20 summit regarding...
Dollar Rebounded Strongly as Focus Turns to FOMC Meeting
Dollar ended as the strongest one last week as economic data from the US affirmed that Fed is in no rush to deliver the "insurance" rate cut this month, that is, on June 19. Yen was the second strongest as US and German treasury yields stays pressured. Canadian Dollar...
Dollar Rises Broadly on Retail Sales and Industrial Production
Dollar jumps broadly in early US session after solid gain in retail sales in May, with upward revision in April figures. Yen is following as the second strongest on risk aversion, followed by Canadian Dollar. Geopolitical tensions heightened after US blame Iran for attacks on oil tankers yesterday. New...
Geopolitical Tensions and Poor China Down Weigh on Sentiments, Gold Shines and Yen Jumps
The financial markets are generally weighed down by risk aversion. Geopolitical tensions heightened after US blamed Iran for involving in the oil tanker attacks near the entrance to the Persian Gulf on Thursday. But Iranian officials denied any involvement and reiterated calls for a regional dialogue. Adding to that...
Swiss Franc Lifted by Attacks on Oil Tankers, Shrugs SNB
Attacks on two oil tankers in the Gulf of Oman is the biggest news in early US session. WTI oil price is up 3.5% and is back pressing 53 handle after dipping to 50.85 yesterday. The news is both supportive Swiss Franc and Canadian Dollar, which are currently the...
Australian Dollar Dives as Job Data Gives Nod to More RBA Rate Cuts
Australian Dollar tumbles broadly today as weak employment data solidifies the case for more RBA rate cut ahead. The headline number might be strong but the details are generally weak. The Aussie is also generally pressured by mild risk aversion in Asian markets. For now, Dollar is following Aussie...
Dollar Survives Slight US CPI Miss, But No Turnaround Yet
The forex markets are rather mixed today. Dollar suffered very brief selling after CPI miss. But the greenback quickly regains footing as the readings are not bad enough to push Fed for a cut. For now, Sterling is the strongest one for today, followed by Yen and then Dollar....
Aussie Lower on Deteriorating Consumer Sentiment, Risk Appetite Recedes Mildly
ommodity currencies trade broadly lower today as risk appetite lost momentum. Major US indices reversed earlier gains to close mildly lower. Asian stocks generally follow with the exception of Singapore. Aussie is also weighed down by deteriorating consumer sentiment. Swiss Franc and Yen gearing up some momentum but for...
Sterling Recovers on Wage Growth, Euro Shrugs Poor Investor Confidence
Sterling recovers broadly today as lifted by stronger than expected wage growth. A key BoE official also noted that interest rate might have to rise more quickly than market expected. Though, upside of the Pound is capped so far, by Brexit uncertainty and worries over slowdown if such uncertainty...
Australian Dollar Pressured Despite Improvement in Risk Appetite
US stocks closed generally higher overnight even though the rally looks a bit stretched. Positive sentiments continue in Asian session today. Yen is naturally one of the weakest on risk appetite. But Australian and New Zealand Dollar are also among the weakest, continuing recent decoupling with risk markets. We'll...
Sterling Tumbles on GDP Contraction and Weak Manufacturing Outlook
Sterling trades broadly lower today after data showed unexpected GDP contraction in April. More importantly, the deterioration in manufacturing after Brexit stockpiling appeared to be much worse than expected. Other survey data indicated little recovery momentum in Q2 so far, which could be heading for a contraction. Meanwhile, Australian...
Dollar Recovers on US-Mexico Deal, Aussie Weighed Down by China Imports
Dollar recovers broadly today while stocks markets rebound. Threat of US-Mexico trade war vanished after Trump announced to suspend indefinitely the plan to impose tariffs on all Mexican imports. An agreement was made between the US and Mexico on migration issue. At this point, there is no confirmation of...
Dollar in Steep Decline… Before Trump Drops Mexico Tariffs
Dollar weakness was the main theme over the whole week. It started with worries over Trump's tariff threats to Mexico. Then Fed officials came out acknowledging the risks from Trump's tariff policies and signaled their openness to rate cuts should trade tensions worsen. Selling reached its peak after poor...
Dollar and Yield Tumble as Poor NFP Affirms Fed’s Rate Cut
Dollar tumbles sharply in early as poor non-farm payroll report affirms the case for Fed rate cut this year. The headline number of 75k is a big miss. Equally importantly, weaker than expected wage growth argues that inflation pressure could remain subdued ahead. The question now is on whether...
Dollar Recovers ahead of Job Data, But More Downside Still in Favor
Dollar recovers mildly today, continuing to stabilize from this week's selloff. The greenback is staying in range established earlier except versus Canadian. There is some optimism on the outcome of US-Mexico negotiations. Or at least, tariffs won't go up to the worst case of 25% down the road. Together...
Euro in Range after Rough Ride on ECB’s Not Dovish Enough Meeting
It's a roller coaster ride for Euro. It initially dipped after ECB said there will be no rate hike at least through mid 2020. Then it recovered and breaks yesterday's higher against Dollar as the press conference and new economic projections turn out to be not that dovish. Though,...