Market Overview
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...
Euro Picks Up Broad Based Strength Thanks to Rebounds in Crosses
Euro jumps broadly in Asian session today, partly by extended rebound in EUR/AUD, EUR/CAD, and more importantly EUR/CHF. The common currency has clearly left behind the mild dovishness of ECB earlier this week. EUR/JPY also resumed recent rise thanks to broad based weakness in Yen. Stocks markets are mixed...
Dollar Rebounds as Boosted by Jobless Claims, But No Confirmation of Turnaround Yet
Dollar strengthens notably in early US session with help from another set of solid job data. Initial claims is back trending down and hit another low since 1969. 10-year yield is also recovering and could head back to 2.5 handle. Meanwhile, Euro is following as a close second. Canadian...
Sterling Mildly Higher after Brexit Extension, Dollar Mixed after FOMC Minutes
Sterling is given a mild lift after EU grants UK Article 50 delay till October 31. Even though it's still uncertain how Prime Minister Theresa May could get the Withdrawal Agreement through the parliament, the cliff-edge is at least pushed for nearly six months. The Pound is, after all,...
Euro Pressured after ECB, Yen Rises on Falling Treasury Yields
Euro weakens broadly after ECB kept monetary policies unchanged. While president Mario Draghi delivered not much new in the press conference, he did acknowledged that downside risks are materializing. Recovery in EUR/USD and EUR/JPY now look rather short-lived. Meanwhile, Dollar is mixed after CPI data offered nothing for Fed...
Yen Digests Gain as Trade War Threats Continue to Weigh on Sentiments, ECB to Stand Pat
The forex markets are relatively steady in Asian session today. For the week, Yen is so far the strongest, following mild risk aversion. Investors are concerned that the US is going to escalate trade war with EU, while they haven't even finished negotiations with China. The punitive and retaliation...
Trump’s Threat of US-EU Trade War Sends Dollar, Yield and Stocks Lower
Dollar suffers new round of selling in early US session after Trump confirmed his intention to escalate trade war with the EU with his tweet. DOW opens sharply lower and is down -190pts at the time of writing. US 10-year yield also suffers as investors turn cautious again, breaking...
Dollar and Euro Pressured as Trump is Starting US-EU Trade War
Dollar and Euro are trading as the two weakest ones today as pressured by renewed threats of escalation in global trade war. While trade talks with China continue to drag on, US is preparing to start another battle targeting EU. Meanwhile, Sterling is trading generally firm, but bounded in...
Euro Higher as Investor Confidence Improves, Yen also Recovers as Risk Markets Turned Mixed
Euro receives a wave of buying in European session, partly as lifted by improving investor confidence data. EUR/USD's break of last week's high is a positive development. Yet, the rally is not strong enough to warrant near term bullishness yet. Meanwhile, the common currency remains bounded in familiar range...
Yen Mildly Higher While Dollar Softens. ECB, FOMC Minutes and US CPI the Focuses
Yen recovers notably in Asian session today but the recovery is not strong enough to warrant a sustainable rebound yet. Meanwhile, Australian and New Zealand Dollar are generally pressured while there is no apparent sign of risk aversion. The economic calendar is not particular busy today with some second-tier...
Fundamentals Improved But Uncertainties Remain, Forex Markets Isolated From Optimism Elsewhere
After a strong Q1, risk appetite extended into the first week of Q2. The most notable improvements were seen in the bond markets, as German 10-year yield turned positive again. US 10-year yield also reclaimed 2.5 handle. However, stocks and 10-year yield are both near to key resistance zone....
Dollar Higher as NFP Beat Expectations, But Upside Capped by Sluggish Wage Growth
Dollar is lifted mildly in early US session as employment data posted slight upside surprise. But buying in the greenback is not broad based yet. A key factoring limiting Dollar' rise is sluggish wage growth. But after all, the set of numbers look way better than February's. Meanwhile, Canadian...
Focus Turns to Non-Farm Payroll after Vague Progress in US-China Trade Talks
Yen is trading softer in otherwise quiet markets today with Hong Kong and China on Holiday. Yen is indeed also the weakest one for the week following rebound in global treasury yields. For now, Swiss Franc is the second weakest for the day, followed by Dollar. Sterling is again...
Dollar Higher on Jobless Claims, Cautious ahead of Trump-Liu Meeting and NFP
Dollar rises broadly in early US session as partly helped by pleasant surprise in initial jobless claims, which fell to lowest since 1969. But gains are so far limited as markets are awaiting meeting between Trump and Chinese Vice Premier Liu He at 2030 GMT. It's widely reported that...
Markets Mixed as US-China Trade Talks Enter into Final Stage
Chinese stocks extend recent rally on news that US-China trade negotiation are completing its final stage. There could even be an announcement of Trump-Xi summit today and Trump meets Chinese Vice Premier Liu He. However, outside China, the markets are just mixed, without clear directions. Economic data released this...
Poor US ADP and UK PMI Services Ignored, Risk Appetite Stays Strong
Risk appetite are generally firm globally today and it's best reflected in Germany 10-year yield, which turns positive for the time in more than a week. It's a rather clear indcation of a positive turn in overall sentiments. There is some optimism on US-China trade negotiations, which resume in...
Trade Talk Optimism and Chinese Service Data Lift Sentiments, Yen Pressured
Yen is back under pressure again today as Asian stock markets extend this week's rally. Stronger than expected Chinese services data is lifting sentiments. Meanwhile, there is somewhat some optimism on US-China trade negotiations, which is restarting in Washington today. International organizations continued to give warnings on global slowdown,...
Dollar Trading Higher Despite Durable Miss, Sterling Soft in Established Range
Dollar trades generally higher today even though upside momentum is capped by weaker than expected durable goods report. Economic data released this week are so far mixed. But at least, they don't point to heightened recession risk. While long treasury yields retreat mildly today, they're held well above last...
Australian Dollar Tumbles as RBA Signals It’s Ready to Move
Australian Dollar trading broadly lower today after RBA kept interest rate unchanged. While there was no clear dovish shift, the statement suggests that RBA is starting to get ready for a move. Weakness in Aussie takes New Zealand Dollar lower too. Sterling is the third weakest so far after...
US Retail Sales Disappointment Raises Doubts on Optimism from Chinese Data
Global markets are generally in risk-on mode today as recession fears eased mildly after improvement in Chinese manufacturing data. While sentiments remain generally positive in early US session, there is a slight bit of cautiousness after disappointment retail sales from he US. Headline sales dropped -0.2% mom in February,...