Market Overview
Fresh Dollar Selling after Core CPI Miss, ECB & BoE Stand Pat While CBRT Hikes
Dollar has been relatively today and risks of escalation in trade war diminished. Deeper selling is seen after inflation data showed larger than expected fall in core CPI in August. Though, the greenback is currently underperformed by Yen due to easing risk aversion. In addition to trade optimism, Turkish...
US & China to Restart Trade Talks, Aussie & Stocks Boosted But Investors Showed No Commitment Yet
Risk appetite was given a strong boost overnight on news that US and China were going to re-start trade talks before now round of tariffs take effect. The news was further confirmed by White House economic advisor Larry Kudlow after the bell. Australian Dollar surged sharply on the news...
Dollar Dips as PPI Fell for the First Time in 1.5 Years, But Loss Limited
Dollar dips slightly against the Japanese Yen in early US session after weaker than expected inflation data. But loss is so far limited. And, the forex markets continue to lack a general, committed direction. Yen is trading as the strongest one for today so far, but upside is limited...
Multiple Factors in Play as Currencies Await Clearer Directions
The forex markets are relatively quiet in range today as multiple factors are having conflicting impacts. Asian equities continue to diverge from the US stocks, as weighed down by trade worries. While Yen is mildly firmer today, it's the second weakest for the week, following Swiss Franc. Strengthen in...
Dollar Surges as US-China Tensions Back in Spotlight, Sterling Rally Lost Steam
Market sentiments seem to be hurt by news that China is set to seek WTO backing next week to slap sanctions on the US. The sanctions would be for non-compliance with a WTO ruling over US dumping duties, which China won in 2016. The case was then confirmed in...
Sterling Strong on Brexit Optimism, Look into Job Data for Further Strength
Yen and Dollar are trading as the weakest ones in Asian session as risk aversion receded. In particular, Nikkei rebounds over 1% as concerns eased about last week's typhoon and earthquake. Canadian Dollar is the strongest one at the time of writing, followed by Australian Dollar and Sterling. But...
Swiss Franc Dives on Easing Italian Budget Worries, Franc Crosses Could be Reversing
Swiss Franc tumbles broadly today as easing concerns over Italy's budget narrows Italian-German yield spread notably. Italy Economy Minister Giovanni Tria's comments over the weekend were well received by the markets. Euro also strengthens broadly, except versus Australian Dollar and Sterling. Aussie is merely in consolidation, digesting recent steep,...
Yen Mildly Higher as Asian Markets Weighed Down by Trade Tension, ECB to Highlight the Week ahead
Yen opened the week mildly higher as Asian markets are generally soft on risk aversion, after Trump warned of tariffs on additional USD 267B in Chinese imports on Friday. However, Nikkei is rather immured from trade threats for today, despite Japan being named the next target. But after all,...
Dollar Soared as Data Support Fed Hikes, Trade War to Intensify
Economic data, Fed expectations, trade war, Brexit were among the biggest themes last week. Emerging market risks seemed to have abated. Meanwhile, Italy was less of a threat to Eurozone after the government pledged not to blow up the account. Yen and Swiss Franc ended the week as the...
Dollar Rises on Solid NFP and Wage Growth, Sterling Even Stronger on EU Barnier
Sterling surged sharply today as once against lifted by Brexit. The direct trigger isn't clear but it's believed to be comments by EU Barnier. Dollar is following as the second strongest with help from another set of solid non-farm payroll data. In particular, wage growth beat an already high...
Yen Jumps as Asian Selloff Extends, Dollar Cautious ahead of NFP Job Data
Australian and New Zealand Dollar suffered heavy selling today as risk aversion weighs. Major Asian indices are all in red on trade war worries and selling is intensifying into mid-Asian session. Dollar doesn't ride on the wave and is trading as the third weakest. But the greenback is seen...
Dollar Weakens after Mixed Job Data, Awaiting Trade War Developments
Dollar weakens again in early US session after mixed job data, but selling pressure is so far limited. Markets are cautiously awaiting tomorrow's non-farm payroll report for sure. But more importantly, the development in trade relationship with Canada and China is the focal point. Canadian Foreign Affairs Minister Chrystia...
Yen and Swiss Franc Higher after Sharp Sterling Volatility, Dollar Looks to ISM Services
After sharp volatility overnight, the forex markets relatively calm in Asian session. Australian Dollar is trading as the weakest one so far with larger than expected trade surplus providing no support. Dollar follows as the second weakest as it turned soft after the rally attempt failed. Canadian Dollar and...
Budget Discipline Narrows Italian-German Yield Spread, Yen and Swiss Franc Lower
Risk aversion is the general theme in European and Asian markets today while US futures point to lower open. But that's not quite reflected in the currency markets. New Zealand Dollar is trading as the strongest one so far. Canadian Dollar also recovered some ground as markets await BoC...
Asian Stock Rout Limits Aussie Rebound, Dollar Rise Halted by Dovish Fedspeak
Australian Dollar is lifted broadly today after stronger than expected GDP data. But the Aussie quickly pared gains as weighed down by stock market rout in Asia. At the time of writing, Hong Kong HSI leads the decline by falling -1.65%. China Shanghai SSE is down -0.92%, Singapore Strait...
Dollar Surges as Ex-US Markets Back in Risk Aversion, Canadian Dollar Tumbles Sharply
Dollar strengthens broadly today, in particular against commodity currencies, as global ex-US markets are back in risk averse mode. Trade tensions and emerging market problems are staying as the two main themes that weigh on investors' sentiments. The greenback is followed by Yen and Sterling as the next strongest....
Australian Dollar Supported by Dull RBA Statement, Canadian Dollar Weakens Further
The forex markets are rather quiet in Asian session today, with the exception of some notable weakness in Canadian Dollar. Euro is so far the weakest one but it's kept above yesterday's low. Sterling follows as second weakest together with Loonie. On the other hand, Dollar, Australia and New...
Sterling Selloff Accelerates on PMI Manufacturing, Australian Dollar Recovers ahead of RBA
Sterling's selloff accelerates today and Brexit optimistic faded. The Pound was lifted by EU chief Brexit negotiator Michel Barnier's offer of an unprecedented relationship last week. It's now single-handedly hammered by Barnier too as he blasted UK's Brexit plan. Adding further pressure to the Sterling, UK PMI manufacturing dropped...
Sterling Lower as EU Barnier Rubbished UK Brexit Plan, Yen Jumps on Risk Aversion and JGB Yields
Sterling opens the weak broadly lower and stays soft after EU chief Brexit negotiator Michel Barnier said he "strongly opposed" to UK's impractical plan. The Pound has been sensitive to any Brexit headlines and will continue to be so. New Zealand Dollar is the second weakest one. But Canadian...
US Trade War Again Dominated, But Everyone Has Their Own Stories
The last week of August was unusually volatile and eventful. It's a week to remember yet it's hard to remember all the details. Almost every major currency got its own stories. Swiss Franc and Japanese Yen ended as the first and third strongest ones on risk aversions. And apparently,...