Market Overview
Sterling Patiently Awaits BoE Super Thursday, NZD Dived on Dovish RBNZ
Dollar, Sterling and Canadian Dollar remain the strongest three for the week. But is should be noted that the reasons behind the strength are different. The greenback continued to draw support from strength in treasury yields as 10 year yield broke 3% yesterday to 3.004. Fed is also on...
Canadian Dollar Strong on Oil Price, Dollar Reversed Gains
Yen remains the weakest one in early US session while strength in oil price is giving Canadian Dollar a strong boost. Dollar, on the other hand, reversed earlier gains and trades broadly lower, except versus Yen. Bullish momentum of the greenback seems to be exhausted ahead of heavy weight...
Yen Broadly Lower and Trump’s Iran Deal Withdrawal Lifts Oil Price and Yield
Reactions to US withdrawal from the Iran nuclear deal were centered in oil and yield. Stocks had a rather quiet day yesterday with DOW ended up 0.01%, S&P 500 down -0.03% and NASDAQ up 0.02%. At the time of writing, Nikkei is down -0.35%. Meanwhile, after a volatile ride,...
Swiss Franc and Yen Surge as Markets Preparing for Risk Aversion ahead of Trump’s Iran Deal Decision
The strong rally in both Swiss Franc and Japanese Yen, together with selloff in commodity currencies, argue that forex traders are preparing themselves for some risk aversion. US President Donald Trump's decision on Iran deal today should be the key perceived risk. At the time of writing, European indices...
Dollar and Yen Staying Near Term Bullish Against Euro, With Weaker Momentum
The forex markets are basically staying in recent trends, but with weaker momentum. Dollar extended the rally against Euro and Swiss Franc, but it's kept in tight range against Sterling, Aussie and Loonie for the momentum. Yen, is broadly higher today, with EUR/JPY dipping through last week's low. But...
Dollar Extending Rally against Euro and Swiss Franc as Weak Eurozone Data Weigh
Dollar is extending recent rally against Euro and Swiss Franc in early US session. EUR/USD breached 1.19 handle as it's now trying to get rid of 1.2 firmly. USD/CHF reaches as high as 1.0055 and breached 1.0037 resistance. Weak Eurozone data is a factor weighing on the comment currency,...
Dollar Mildly Firmer in Quiet Markets, USD/JPY Pressing Channel Support
The forex markets open the week rather quietly today. Dollar is trading mildly firmer in tight range against other major currencies. Aussie is so far the weakest one today, getting no support from positive business condition and confidence data. Markets could remain quiet today with UK on holiday. The...
Yen Beat Dollar as the Strongest in Yields Driven Forex Markets
Dollar ended last week broadly higher except versus the Japanese Yen. While economic data from the US were generally disappointing, they were not bad enough to alter Fed's path of three rate hikes this year. Just that, the data didn't add to the chance of the fourth hike in...
It’s Still the Yen’s Show after US Non-Farm Payrolls and Wage Growth Missed Expectations
Dollar fails to regain spot light after worse than expected job data. Non-farm payroll showed 164k growth in April only, below expectation of 194k. Prior month's figure, though, was revised up from 103k to 135k. Unemployment rate dropped to 3.9%, down from 4.1% and beat expectation of 4.0%. That's...
Dollar to Take Back the Stage from Yen and Aussie as Non-Farm Payrolls Loom
Initial selloff in the US stock markets overnight shot up Japanese Yen. DOW initially dipped to as low as 23531.31, suffering near 400 pt loss, but reversed and closed up 0.02% at 23930.15. Nonetheless, S&P 500 and NASDAQ closed in red, down -0.23% and -0.18% respectively. Yen pared back...
Yen Stealing the Show as Dollar Consolidates, Euro and Sterling Tumble on Weak Data
Dollar is trading with a soft tone today as traders are cautiously waiting for tomorrow's job report. And just like how it was in recent months, wage growth will be more important than the headline number. For now, Yen and New Zealand Dollar have stolen the spotlight as both...
Dollar Retreats after FOMC; US, Eurozone and UK Data Awaited
Dollar trades generally lower in Asian session as it has turned into correction mode. While slightly more hawkish than expected, the FOMC statement released overnight provided little inspiration to the markets. Major US equity indices ended in red, with DOW dropped -0.72%, S&P 500 down -0.72% and NASDAQ lost...
Euro and Sterling Recovered on Economic Data, Dollar Patiently Awaits FOMC
Dollar is trading slightly lower today as markets digest recent against ahead of FOMC rate decision and statement. Slightly better than expected ADP employment is shrugged of by the markets. Euro survived the test of GDP data and recovers mildly. Sterling also gets some support from better than expected...
Dollar Firm as FOMC Awaited, Euro and Sterling Shaky ahead of GDP and PMI
After yesterday's strong rally, Dollar retreats mildly today as markets await FOMC decision. For the week, the greenback remains the strongest one. Canadian Dollar follows as the second strongest, riding on better than expected GDP data. Sterling, on the other hand, is trading as the weakest one, as weighed...
Dollar Resuming Recent Rally, Sterling Tumbles after PMI, Canadian Up on GDP
Dollar resumes recent rally today and breaks last week's high against all major currencies except Canadian Dollar. In particular, GBP/USD has taken out 1.3711 key support level after UK PMI manufacturing missed market expectations. The development is in line with the view of medium term reversal. AUD/USD also breached...
Australian Dollar Steady after RBA Stands Pat, UK PMI Manufacturing to Watch
Australian dollar is steady after RBA left cash rate unchanged at 1.50% as widely expected. Governor Philip Lowe continued to be confident on the economy. He noted in the accompanying statement that "the bank's central forecast for the Australian economy remains for growth to pick up, to average a...
Dollar Staying Range Bound an PCE Matched Expectations, Sterling Rebounds after Initial Selloff
Dollar remains firm in early US session after release of personal income and spending data. But now, the green back is held below Friday's high against all but Sterling. Canadian Dollar follows as the second strongest. The Pound was initial sold off earlier today but then quickly rebounded. It's...
Forex Markets Steady as Heavy Weight Data from US, Eurozone and UK Awaited
The forex market open the week rather steadily with major indices stuck inside Friday's range. Aussie is generally lower followed by Yen. Meanwhile, Sterling, Dollar and Swiss Franc are generally higher. But the picture could quickly change as volatility comes in. The week ahead is full of important events...
Dollar and Yield Reached Critical Junctures after Strong Rally, Determining Events ahead
Dollar was given a powerful boost last week on a couple of factors. Firstly, 10 year yield extended recent bull run and hit 3% level for the first time since 2014. Secondly, Euro was sold off steeply after the confusing messages from ECB President Mario Draghi during the post...
Dollar Rally Exhausted after Multiple Boosts this Week, Sterling and Euro Tumbled on GDP Misses
Dollar's rally seem to be a bit exhausted in early US session. After all, the greenback was lifted firstly by yield earlier this week, then by ECB yesterday. Additional buying jumped in after French GDP miss and than UK GDP miss in European session. Hence, even though the greenback...