Market Overview
Sterling Suffers Fresh Selling on Irish Backstop Deadlock, Dollar Still Attempting to Rally
Sterling trades broadly lower today and suffers fresh selling in early US session. Some attributes the decline to reports that UK Attorney General Geoffrey Cox and Brexit Minister Stephen Barclay won't get any breakthrough on Irish backstop in Brussels today. But it is actually hardly any news. UK government...
Dollar Supported by Improving Yield Curve, Yet to Take Out Key Resistance
The financial markets are relatively quite in Asia today. Stocks turned mixed following the pull back in US overnight. But losses are limited while the resilient Chinese SSE is having slight gain. Chinese government lowered 2019 growth target to 6.0-6.5%, with the lower bound at lowest pace in more...
Euro Lower Despite Stabilization Signs, Risk Appetite Continues on Trade
Global stock markets are generally higher today, continuing to ride on trade optimism. White House economic adviser Kevin Hassett added to the positive mood and said US Trade Representative Robert Lighthizer has made a lot of progress with China. And the deal may be finished some time soon. Also,...
Stocks in Strong Rally as US-China Trade Deal Close in, Currencies Tread Water
Strong risk appetite dominates Asian markets today on trade optimism after WSJ said a deal could be sealed by the end of the month. In particular Chinese Shanghai SSE surged through 3000 handle for the first time since June 2018. Japan 10-year JGB yield also turned positive again at...
Treasury Yield Surged on Abating Global Risks and Bets on Bottoming in Economic Slowdown
There were so many high profile events last week. In the end, the positive ones were more than enough to offset the negative ones. US-China trade truce was extended indefinitely and it looks closer than ever to have deal. MSCI's increase of weighting of Chinese stocks gave China another...
Markets Cheer Positive News from China, Yen Drops Further
The financial markets are back in full risk on mode today. China Shanghai SSE jumped 1.8% to 2994.01, just missed 3000 handle. Optimism of bottoming in the slowdown is a factor as Caixin PMI manufacturing rebounded to 49.9, just missed 50. More importantly, MSCI said that it will quadruple ...
Yen Decline Accelerates on Widening Yield Spreads
Yen's decline continues today and remains the weakest one for the week. Widening treasury yields is seen as the main driving force behind Yen's selloff. German 10-year yield at 0.186 is now heading back towards 0.2 handle. The rebound on improving outlook is remarkable, considering it closed at 0.096...
Dollar Surges as US Q4 GDP Grew 2.6%, Eyes on Treasury Yields for More Strength
Dollar regains some ground in early US session after stronger than expected Q4 GDP report. But at the time of writing, it's still trailing behind Euro and Swiss Franc. The common currency is boosted up by strong rally in German 10-year yield, which is up 0.028 at 0.178. Swiss...
Yen and Treasury Yields Await US GDP for Inspirations
The finance markets turned mixed in Asian session today. Yen was sold off overnight, following the strong rebound in US treasury yields. In particular 30-year yield staged the biggest rise in a about a month and looks completed the consolidation from 3.109. But there is no follow through selling...
Sterling Extends Unstoppable Rally, Swiss Rises on Pakistan-India Tensions
After taking a brief Brexit, Sterling's rally extends again today on optimism that risk of no deal Brexit is fading. Also, key figure of Brexiteer also expressed condition support for UK Prime Minister Theresa May's Brexit deal. For now, with some key resistance levels already taken out, the Pound...
Yen & Dollar Recover as Markets Turned Cautious, Trump-Kim Summit & USTR Testimony Watched
Yen and Dollar trades mildly firmer today as markets turn cautious ahead of Trump-Kim summit. But the biggest risks could lie on US Trade Representative Robert Lighthizer's testimony at the House Ways and Means Committee. After Trump postponed trade truce deadline with China "indefinitely", there is added optimism on...
Sterling Breaks Key Resistance as UK Moves a Big Deal to Avoid No-Deal Brexit
Sterling rises broadly today and takes out key resistance against Dollar and Euro. UK has moved a big step in avoiding no-deal Brexit. Prime Minister Theresa May announced to hold three separate votes on Brexit deal, no-deal Brexit and delay. The key is, no-deal Brexit is no longer the...
Sterling Surges as BoE Hearing and May’s Cabinet Meeting Watched
Sterling rises broadly today on news that opposition labor is going to back second Brexit referendum. Meanwhile, the UK government is also considering delaying Brexit. The Pound stays firm entering in to European session and eyes will be on Prime Minister Theresa May's post Cabinet meeting update. Meanwhile, Sterling...
Trump Knocks Down Oil Price after Shooting Up Chinese Stocks
Trump is the biggest market mover in an otherwise rather listless day. Chinese stocks surged 5.6% on news that trade truce deadline on March 1 is postponed. He's now planning a summit in Mar-a-Lago to seal the trade deal with Chinese President Xi Jinping. Later in the day, WTI...
Asian Markets Lifted Mildly as US-China Trade Truce Extends
Asian markets traded higher earlier today after Trump announced to extend trade truce with China beyond March 1. But there is no sustainable buying, except in China. Australian Dollar is lifted by positive sentiments. But New Zealand Dollar is even stronger after better than expected retail sales. On the...
Trade Optimism Boosted Risk Appetite, Dollar and Yen Ended Lower
Yen and Dollar closed the week generally lower on strong risk appetite. There was some sort of optimism over US-China trade negotiations throughout the week. And that helped DOW and China SSE extend recent rally. DOW closed above 26000 for the first time since November. SSE also closed above...
Sterling Sold off ahead of Weekend, Aussie Rebounds
Sterling is sold off broadly today as it's getting unlikely to have a Brexit breakthrough at the Sharm El-Sheikh summit on Sunday. Prime Minister Theresa May is highly unlikely to bring back any revised deal for parliament approval next Wednesday. Dollar follows as the second weakest as markets await...
Markets Await US-China Trade Talk Results, NZD Hammered by RBNZ
The financial markets are slightly firmer today but lacks conviction. All eyes are on the results of US-China negotiations in Washington. There were rumors that the teams are drafting MOUs, and China pledged to increase agricultural purchases. But no details were leaked regarding the real core issues, in particular...
Dollar Weakens Again on Data Disappointment, Eyes Trade Talk Results
Dollar turns weaker again in early US session after data disappointment. Also, the USDA reported that US farm exports to China will suffer steep decline. Business in the US are eager to know more about the progress of US-China trade negotiation. There are reports that China offers to buy...
Australian Dollar Tumbles on RBA Cut Talks & Dalian Coal Import Ban
Australian Dollar was the center of focus in Asian session today. Stellar job data provided some brief boost to the Aussie. It was then hammered by talks of two RBA rate cuts this year. Selloff accelerates further on news that China's Dalian ports banned the countries' coal imports. In...