Market Overview
Euro Tumbles on Italian Yield, German Data and IMF Growth Downgrade
Euro suffers heavy selling today as German-Italian yield spread widens further to above 310. It's clear that Italy is not doing to back down on its budget deficit plan despite strong criticism from EU. Besides, it would be facing risks of downgrade by credit agencies. Additional Euro weighed down...
Markets Mixed as Risk Aversion Peaked Temporarily, Dollar Turned into Corrective Mode
The financial markets are mixed in Asia today as risk aversion seemed to have peaked for now. NASDAQ led US stocks decline overnight a hit as low as 7654.84 but closed down only -0.67% at 7735.95. S&P 500 also dipped to 2862.08 but closed down -0.04% at 2884.43. DOW...
Yen Rises as Italy Prompts Risk Aversion, Euro and Sterling Weak
Yen surges broadly today as risk aversion dominates the markets. Italy is at the center of storm as yield spread with Germany stays above 300 alarming level, on concerns over budget deficit. Despite criticism from EU and risk of credit rating downgrade, the populist government doesn't appear to be...
Australian Dollar Recovers as Chinese Stocks Down But Not Out after Holiday
Risk aversion continues in Asian market but there is no disastrous development. Chinese stocks are back from holiday, down -3%. That's just playing catch up to last week's broad based decline in other Asian markets. China's RRR cut on Sunday stabilized sentiments somewhat, without giving it any lift though....
Dollar Surged on Treasury Yields and Bets on Fed Hikes, Except Versus Sterling
It's another week's that's full of headlines. Sterling ended as the strongest one on revised hope of a Brexit deal with the EU despite all the rhetorics. UK Prime Minister Theresa May also survived the Conservative Party conference without dance but no disaster. Dollar followed as the second strongest...
Dollar Steady after Mixed NFP, But Risks More Downside as Consolidation Extends
Dollar stays steady in early US session after mixed non-farm payrolls report. Even though Canada reported a set of far more impressive data, USD/CAD is back into tight range after initial knee-jerk reactions. For now, Sterling is the strongest one for today, followed by the greenback. Yen is the...
Dollar Firms Up as Markets Await Non-Farm Payrolls from US
Dollar firm up mildly together with Yen as markets await non-farm payroll report today. The greenback suffered brief setback overnight as traders turned a bit cautious ahead of job report. But Dollar quickly find footing from surging treasury yields. Canadian Dollar also firm up slightly today. BoC is widely...
Dollar Pares Gains after Strong Rally, Sterling Recovers
Dollar retreats broadly in early US session as this week's rally lost some momentum. The greenback might need some help from tomorrow's non-farm payrolls report if it's to extend the rise. Still, Australian and New Zealand Dollar are the weakest ones on monetary policy divergence and risk aversion. Sterling...
Dollar Surged on Hawkish Fed While Treasury Yield Broke Significant Resistance
Dollar surged sharply overnight as boosted by hawkish Fedspeaks, strong rally in treasury yields as well as, solid services data. The greenback is paring some gains in Asian session, to Yen and Swiss Franc on risk aversion. But overall, Dollar remains firm, awaiting tomorrow's non-farm payroll report for more...
Dollar Regains Control as Euro Recovery Fades, Strong ADP Job Gives an Extra Push
Dollar is back in control today and it's trading as the second strongest one in early US session, next to Sterling. Stronger than expected ADP employment report, which showed 230k growth in September, gives the greenback an extra push. Sterling is rather steady as UK Prime Minister Theresa May's...
Euro Recovers on Italy Budget Rumor, Risk Aversion Persists in Asia
Euro recovers broadly today on new that the final version of Italy's budget could be less worse than originally reported. More details could be published today and we'll see how the common currency, as well as German and Italian yield react. Meanwhile, Sterling also recovers as markets prefer for...
Risk Aversion Dominates as Australian Dollar, Sterling and Euro Slide
Euro suffered heavy selling today as Italy and EU stepped up rhetorics on budget clashes. But even heavier selling is seen in Australian, New Zealand Dollar and Sterling. Steep decline in Hong Kong stocks hints that China markets will likely come back from holiday next week facing much troubles....
Euro Weakens as Italy on Track to Clash with EU on Budget, Aussie steady after RBA
Canadian Dollar remains firm on the USMCA trade deal but it's waiting for fresh stimulus to extend rally against Dollar and Yen. Australian Dollar is also steady after RBA stands pat and published a neutral statement as widely expected. Meanwhile, Euro is suffering some fresh selling on persistent worries...
Canadian Dollar Stays Firm on Trade Deal, Sterling Lifted by Brexit Rumor
Canadian Dollar remains the strongest one today as boosted by the new trilateral USMCA trade deal with US and Mexico. Meanwhile, Sterling is shot up by news that UK Prime Minister Theresa May is ready to make a new offer on Irish border on Brexit negotiation. However, no details...
Canadian Dollar Soars as USMCA Trilateral Trade Deal Agreed Finally
Canadian Dollar surges broadly today as the an agreement, the USMCA is finally reached with the US to replace NAFTA. Riding on the last week's post GDP rally, the Loonie is enjoying strong bullish momentum. The USMCA news further seal the case for an October BoC rate hike. At...
Dollar Higher on Hawkish Fed, Euro Dragged Down by Italy
Dollar rose broadly last week as markets received Fed's hawkish rate hike rather week, despite initial hesitation. However, the greenback was just the second strongest, overshadowed by Canadian Dollar. Stronger than expected GDP data from Canada solidify the case of October hike by BoC. Furthermore comments by BoC Governor...
Euro Selloff Intensifies as Markets Response to Italy Budget Deficit Overwhelmingly Negative
A long list of economic data are released today. But the main focus is on Italy. The coalition government's decision to target budget deficit at 2.4% of GDP for the next three years drew heavy criticism from EU. Also, financial market reactions are overwhelmingly negative. European stocks decoupled from...
Dollar Rally Continues as Focus Turns to PCE Inflation
The case for bullishness in Dollar continued to build up with yesterday's rally. The greenback is now the strongest one for the week followed by Sterling. In particular, USD/JPY's firm break of 113.17 resistance confirmed larger up trend resumption. Now, GBP/USD is the only one who's yet to break...
Dollar Extends Post FOMC Broad Based Rally, Euro Lower on Italy Budget Jitter
Dollar strengthens further and broadly, in early US session as post FOMC rally extends. As we aruged in prior report, there were hawkish elements in Fed's projections and overall announcement should be Dollar positive. Today's rally showed that this view is shared by other participants. In particular, EUR/USD's break...
Dollar Rebounded from Knee-Jerk Selloff as Fed is More Hawkish than Initial Perceived
Dollar suffered a brief knee-jerk selloff after Fed raised interest rate as widely expected but stopped calling monetary policy as accommodative. But the greenback recovered as the overall announcement wasn't dovish at all. There were indeed more hawkish elements in the details of the new economic projections. For now,...