Market Overview
Euro Recovers Briefly on Confident ECB Draghi, But Strength Fades Quickly
Euro enjoys a brief recovery after ECB stands pat on monetary. ECB President Mario Draghi expressed his confidence on inflation outlook due to underlying strength of the economy. But together with other European majors, the common currency is quickly under selling pressure again. Dollar is trading to rally in...
Yen Rally Continues as Nikkei Suffers Worst Selloff in Asia, Euro Decline Halts ahead of ECB
Risk aversion is back as the main theme in the global financial markets. The crash in the US overnight has spreaded to Asia. At the time of writing, Japanese Nikkei is down -756 pts or -3.42%, being the worst performer in Asia. 10 year JGB yield also suffers another...
Euro Tumbles as PMI Readings Suggest ECB Easing Bias, Dollar Firm With Canadian and Australian
The theme of the markets have switched from risk aversion to selloff in European majors today. In particular, Euro leads other down after weak PMIs point to further slow down in the economy. Even worse, Markit expects that the PMI readings are now consistent with ECB easing bias. And...
Yen Lower as Risk Aversion Recedes, Canadian Dollar Awaits BoC Hike
Despite initial steep selloff, US equities staged a strong rebound before close and closed just slightly lower. The turnaround in sentiments carried on in Asian session with major indices all trading in black. With receding risk aversion, Australian and New Zealand Dollar are trading as the strongest one for...
Yen Surges as Global Stock Rout Extends, Sterling Lifted by Brexit Rumor
Risk aversion is the main theme in the financial markets today and all major global stock indices are in deep red. DOW futures are also down more than -400 pts at the time of writing. However, Sterling defies gravity and is trading as the strongest together with Japanese Yen...
Yen Rises & Aussie Falls as Nikkei Leads Asian Stocks Lower
Australian and New Zealand Dollar are trading as the weakest ones today. Nikkei's sharp, over -2% decline led Asian markets lower. Risk aversion is popping up the Japanese Yen. For today, Canadian Dollar is the second strongest, followed by Dollar. For the week, though, Sterling is the worst performing...
Euro Rally Falters on Italy, Sterling Extending Selloff on Brexit
Italy is the center of focus in a rather quiet day. The highly anticipated response to EU on its budget is delivered. And there is little surprise that Italy insists on sticking with it's budget deficit target of 2019. Euro's rally attempt falters after that and turned mixed. Nonetheless,...
Chinese Stocks Lead Asia Higher, But Australian Dollar Soft
Asian stocks are in full risk-on mode as the week starts. China's Shanghai SSE leads the way by rising 4.56% at the time of writing, back above 2600 handle at 2666. Some attribute the rebound to words of top Chinese official, including President Xi Jinping who vowed to "unwavering"...
Multiple Themes in Markets, More Upside in Euro after Surviving Italy Rating Downgrade
The markets were driven by multiple themes last week. Dollar ended up broadly higher as supported by hawkish FOMC minutes and rebound in treasury yields. However, it's outshone by New Zealand and then Australian Dollar. Kiwi was boosted by stronger than expected CPI. Meanwhile, the Aussie was pulled up...
Canadian Dollar Dives after Weak CPI and Retail Sales, Euro Steady Despite Widening German-Italian Spread
Canadian Dollar suffers heavy selling in early US session as the large deceleration in CPI to 2.2% raising doubts on whether BoC would still hike next week. Meanwhile Yen and Swiss Franc are among the weakest ones. Widening of German-Italian spread is not translated into selloff in European stocks...
Euro Weak as Italy-EU Budget Clash Starts, China GDP Miss Shrugged
Euro and Sterling recover mildly in Asian session but they remain the weakest two for the week. Brexit impasse and Italian budget continued to weigh down both currencies, which also drags down Swiss Franc. Dollar's rally extended lower night as helped by hawkish comments from a top Fed official....
Dollar Struggles to Find Momentum Despite Solid Job Data
Dollar is struggling to find more upside momentum in early US session except versus Swiss Franc. Solid job data is not giving the greenback the needed fuel for rally. Nonetheless, Dollar is still firm as supported by the hawkish FOMC minutes released yesterday. For now, Australian Dollar is the...
Dollar Slightly Firmer on Hawkish FOMC Minutes, Sterling Softens on Brexit Impasse
Dollar strengthened overnight after FOMC minutes showed that majority of Fed officials expected interest to enter into restrictive region down the road. Treasury yields also ended up mildly higher. And more importantly, stock markets showed no particular negative reaction to the minutes. USD/CHF's break of 0.9954 high and USD/JPY's...
Dollar Higher But More Needed to Prove Itself, Sterling Weak as CPI Miss
Dollar and Yen trade broadly higher in early US session as investors turn cautious again. Minutes of September FOMC meeting where there was another 25bps hike would catch much attention. But we're not expecting anything dramatic from there. All the markets need to know should have been delivered in...
Dollar Ignores Another Trump Attack on Fed, Yen Higher as Chinese Stocks Resume Down Trend
US equities closed sharply higher overnight with DOW ended up 2.17%. Optimism carried on in early part of Asian session but couldn't persist. At the time of writing, China's Shanghai SSE reversed earlier gains and is trading down -0.8%, breaking yesterday's low to extend larger down trend. Riding on...
Sterling Jumps on Strong Wage Growth, But Upside Capped by Brexit Uncertainty
Sterling trades broadly higher today as boosted by stronger than expected wage growth data. While the gains are impressive, upside is limited against Dollar, Euro and Yen so far. UK Prime Minister Theresa May's fortunate in the EU summit tomorrow is a factor capping the Pound. Also, there will...
New Zealand Dollar Jumps on CPI, Dollar Recovers after Brief Selloff
New Zealand Dollar rises sharply and broadly today as boosted by consumer inflation data. Other than that the forex markets are pretty directionless. Despite being sold off yesterday after retail sales, Dollar recovers broadly today as corrective trading continues. The greenback is in tie with Canadian Dollar as the...
Dollar Weakens on Retail Sales Miss and Saudi Arabia Tensions, Sterling Rebounds
Dollar is trading as the weakest one for today after it's rally attempt failed. Additional pressure i seen in early US session after retail sales miss. Tension between the US and Saudi Arabia and the risks of sanctions are seen as a factor weighing down the greenback. Meanwhile, Sterling...
Sterling Sharply Lower on Irish Border Deadlock, Risk Aversion is Back in Asia Too
Sterling is trading the the biggest loser today as it gapped down on negative Brexit news. It's getting unlikely to have breakthrough in the sticky issue of Irish border at the EU summit this week. Elsewhere risk aversion is back in Asian markets as selloffs in stocks resume. Reactions...
Conditions Still in Place for Further Dollar Rally Despite Trump’s Crazy Fed Attack
Global stock market crashed last week as the US finally joined the others. It should be reminded that as DOW made record high in early October, all other major markets suffered selloff already. It's stretched to blame rising US treasury yields as a factor as it's easy to see...