Market Overview
Yen and Franc Strong on Trade War, Dollar Mixed Despite Solid NFP
Swiss Franc and Yen continue to trade as the strongest ones for today on risk aversion, as US-China trade war escalates. Global equity markets are under heavy selling pressure, with DOW futures down around -100 pts. German 10-year yield hits another record low at -0.499 and stays soft. Dollar...
Yen Surges on Risk Aversion as US-China Trade War Escalates
Risk aversion dominates the markets as US-China trade war escalates again with Trump's new tariffs. In particular, 10-year yield dived through 2% handle with ease and determination, to close at 1.894, lowest since November 2016. In the currency markets, Yen and Swiss Franc overtake Dollar's position as the strongest...
Sterling Softens after BoE, Yen Surges Through Key Resistance
Sterling weakens broadly today and remains the worst performing one for the week. BoE rate decision provided little inspiration while growth forecasts are notably lowered in the Inflation Report. Euro is the second weakest one on expectation of ECB easing in September. On the other hand, Yen is currently...
Dollar Powered Up by Fed Powell, Broke Key Resistance Against Euro
Dollar was shot up overnight as Fed's rate cut was, overall, less dovish as expected. At least, Chair Jerome Powell clearly indicated that it's not the start of a lengthy easing cycle. The greenback remains firm in Asian session, together with Australia and New Zealand Dollar. The latter two...
Dollar Shrugs Solid ADP Report as Fed Awaited
Dollar continues to trade with a soft tone in early US session. Job data from US is slightly better than expected. US-China trade negotiations concluded in Shanghai without any concrete progress. But traders' minds remain on FOMC rate cut later today. For now, New Zealand Dollar is the weakest...
Dollar Weakens Mildly as Focus Turns to FOMC Rate Cut
Dollar trading generally lower today as markets await Fed's highly anticipated rate cut. Though, the greenback is just the second weakest. New Zealand Dollar is the worst performing one for today so far on deteriorating business confidence. Swiss Franc is the third weakest as markets turned mixed. Australian Dollar...
Dollar Mixed after Core PCE Inflation Miss, Aussie Tumbles on Risk Aversion
Sterling remains the overwhelmingly weakest one on no-deal Brexit concerns. New Prime Minister Boris Johnson is pushing EU to re-open Brexit negotiation. But there is no sign from EU on a position shift yet. Australian and New Zealand Dollars are the next weakest as markets turn into risk averse...
Sterling Selloff Continues as No-Deal Brexit Risks Intensify
Selloff in Sterling remains the focus in Asian session today, as markets are adding their best to no-deal Brexit. The currency markets are relatively quiet elsewhere. Canadian Dollar is currently the second weakest, then Euro. Yen and Swiss Franc are the strongest, with help by falling treasury yields. Dollar...
Sterling in Free Fall as Johnson’s Government Steps Up Hard Line Brexit Rhetorics
Sterling drops broadly today as the new government is starting step up their hard line rhetorics on Brexit. Australian and New Zealand Dollar are also weak as markets await US-China trade negotiations that start tomorrow. Expectations for the talks in Shanghai are so far rather low. Swiss Franc and...
Yen Higher as Markets Turn Cautious in a Week of Fed, BoJ, BoE and Important Data
Yen opens the week broadly higher, following mild risk aversion in Asian markets. Traders are turning cautious ahead of FOMC rate decision, a string of worldwide economic data, as well as resumption of US-China trade negotiations. Swiss Franc is the second strongest so far while Dollar is the third....
Fed Rate Cut Still Expected after Solid Data, But Dollar Could Rally Further After That
Dollar ended as the strongest one last week as boosted by solid economic data from the US. While markets are still pricing in full chance of a Fed rate cut this week, strong data argue against the chance of further easing after that. Euro and Canadian Dollar were the...
Dollar Jumps on Strong Q2 GDP, Yet to Break Key Resistance
Dollar rises notably in early US session after stronger than expected US GDP data. The solid data rises further question on whether Fed would really cut interest rate next week. Even so, a -50bps cut is basically out of question. The greenback is followed by Yen and the Euro....
Dollar Cautiously Firm As GDP Awaited, Euro Recovery Lost Steam
Dollar turns mixed in Asian session today but remains the strongest one for the week. Recent economic data from US, including yesterday's durable goods orders, have been solid, and raised some doubts on the need for Fed easing. Sterling is currently the second strongest for the week, followed by...
Euro Rebounds after Initial Selloff, ECB Opens Door to Rate Cut But Seems Not Urgent
After initial selloff, Euro quickly rebounds as ECB Mario Draghi's press conference is not as dovish as the statement suggests. September ECB decision could be live, depending on upcoming economic projections. For now, Euro is the strongest one for today, followed by Sterling. Dollar is the third strongest, supported...
Euro Stays Weak as Markets Await Dovish ECB Hold
Monetary easing from central banks remain a major background theme in the markets. Euro is sold off this week as markets are preparing for dovishness from ECB today. While immediate policy action is not envisaged, President Mario Draghi is expected to explicitly set the stage for some announcement next...
Euro Dives as PMIs Solidify Case for ECB Easing
Euro tumbles sharply today as poor PMI data solidifies the case for ECB easing ahead. The central bank is not expected to act tomorrow yet, but some form of indications would likely be provided by President Mario Draghi, on what stimulus would be adopted. For now, Australian Dollar is...
Aussie Falls on RBA Rate Cut Expectations, Euro Soft ahead of PMIs
The financial markets somewhat decouple in Asian session today. Australian Dollar is sold off broadly while Yen strengthens, Yet it's has nothing to do with risk appetite with Asian equity indices generally higher. Aussie's weakness is mainly due to RBA rate expectations following poor PMIs. In particular, sharp deterioration...
Dollar Extends Rebound, Sterling Soft after Brief Recovery
Sterling has a very brief recovery today after Boris Johnson reaches the most important checkpoint to become the next UK prime minister. But the Pound quickly lost momentum and is back under pressure. Though, for now, New Zealand Dollar is the weakest one, followed by Euro, then Sterling. On...
Dollar Rises in Mixed Markets, Resumes Rally Against Euro
Dollar strengthens broadly today and breaks near term support against Euro. There is no clear sign of strength in other pairs yet. More is needed to the greenback to prove itself. Meanwhile, markets remain relatively mixed elsewhere. Canadian Dollar is the strongest yet New Zealand Dollar and Australian Dollar...
Dollar Lacks Direction While US-China Trade Meeting Said to Resume
The forex markets are generally mixed today in rather quiet trading. Dollar lacks a clear direction despite rumors that US and China trade teams are going finally meet to resume negotiations. Canadian Dollar is currently the weakest one, followed by Sterling, and then Yen. On the other hand, New...