Market Overview
Yen Traders Exercise Caution Ahead of BoJ
Japanese Yen is extending its broad-based pullback today. This movement appears to be a strategic response from traders lightening their positions in anticipation of the upcoming BoJ policy decision. Although a rate hike by the BoJ seems highly unlikely at this stage, there is speculation about potential adjustments in...
New Zealand Dollar Rises on Robust Domestic Data; Market Awaits BoJ’s Pivotal Decision
New Zealand Dollar strengthens broadly in an otherwise quiet Asian session today, leading Aussie along with it. This notable rise can partly be attributed to two key domestic factors: a significant improvement in consumer sentiment and robust data from the country's services sector. In the broader context, Kiwi's strength...
Risk-On Wave Sweeps Markets, Stocks Hit Records, Dollar Declines
The financial markets concluded last week on a robust risk-on sentiment, driven primarily by the flurry of central bank activities. The stock markets, in particular, resonated with a bullish tone, cementing their position after Fed's dovish shift. This sentiment propelled key indices like the DOW, DAX, and CAC to...
Dollar Rebounds on New York Fed President’s Remarks, Euro and Sterling Soften after PMIs
Dollar is having a notable rebound in early US trading session, buoyed by comments from New York Fed President John Williams. Speaking on CNBC's "Squawk Box," Williams stated, "we aren't really talking about rate cuts right now," adding that it is "premature" to consider rate cuts as early as...
Euro Strong Ahead of PMI Release, Dollar Weak as 10-Yr Yield Broke 4%
Euro is emerging as the strongest currency for the week, bolstered by ECB's resistance to the expectations of a rate cut. The common currency will now look into today's Eurozone data. Positive surprises from there could solidify ECB's stance, and give Euro more fuel to extend recent rise. For...
Sterling and Euro Surge as BoE and ECB Hold Rates, Contrast Fed’s Dovish Stance
Sterling and Euro jumped sharply following the decisions by BoE and ECB to leave interest rates unchanged, in line with market expectations. Notably, both central banks diverged from Fed's recent dovish turn, with explicit statements pushing back on the speculation of rate cuts.
Bank of England Governor Andrew Bailey, speaking...
Dollar Dives after Fed, Yen Leads Gains, Europe Awaits Central Banks Decisions
Investor sentiment was buoyed strongly by Fed's projection of three rate cuts in the upcoming year. This significant dovish turn by the Fed has sparked a wave of investor optimism, propelling the DOW to record-breaking high. This buoyant mood has largely permeated the Asian markets, although Japan has remained...
Dollar Steady ahead of FOMC, Sterling Weakens on GDP Data
The currency markets are currently in a state of anticipation, with Dollar trading within familiar range as investors await FOMC rate decision. The critical question facing the markets is whether Fed will signal the pace of rate cuts in its updated dot plot. In September, the median projection indicated...
Dollar in Wait-and-See Mode, Awaiting Federal Reserve’s Policy Cue
As the markets eagerly await FOMC rate decision and the release of new economic projections, Dollar is currently holding steady within a narrow range. The spotlight is particularly on the revised dot plot, as it is expected to provide crucial insights into the pace of monetary policy easing by...
Dollar Fluctuates After US CPI, Decisive Moves Pending
In the aftermath of US CPI release, the forex markets are staying in a state of consolidation, with mixed reactions. Initially, there was an attempt to sell Dollar following the data, but this momentum quickly dissipated as the data largely aligned with market expectations. Headline CPI showed a gradual...
Dollar Softens Mildly ahead of US CPI, Aussie Gains as China Relaxes Some Trade Sanctions
Dollar softens slightly in today's Asian session, as the global markets await forthcoming US consumer inflation data. Headline CPI is anticipated to show a modest deceleration to 3.2% in November, while core CPI is expected to remain stubbornly high at 4%. Fed's mandate to bringing inflation down to its...
Yen Pullback Persists as Sterling and Dollar Gain Ahead of Crucial Events
Yen's near-term pullback has notably accelerated today. Some reports surfaced suggesting that the BoJ is not poised to abandon its negative rate policy anytime soon, with the earliest potential shift expected no sooner than April meeting. This stance isn't fundamentally new, as BoJ has consistently indicated that it requires...
Yen and Aussie Soften in the Wake of Yuan’s Decline
Chinese Yuan's significant selloff in Asian session today had a ripple effect across several major currencies, dragging down Japanese Yen, Australian Dollar, and New Zealand Dollar. This movement was largely spurred by concerning data from China indicating deepening deflation, which also negatively impacted Hong Kong's stock market. Yuan's future...
A Week of Market Shifts, Yen Skyrockets on BoJ Speculations
The global financial markets last week were primarily influenced by three pivotal themes: Yen's dramatic rise, Dollar's strength following robust US employment data, and repercussions of Moody's downgrading China's rating outlook.
The most striking was the Yen's significant surge, driven by intensified speculation about an impending exit from negative interest...
Dollar Rallies on Strong US Employment Data
Dollar jumps in early US session, buoyed by a robust set of employment data. headline job growth exceeded expectations, narrowly missing 200k mark, while unemployment rate showed a decline. This data suggests a still-tight job market, raising concerns among some market participants that underlying inflation pressures may not be...
Yen Robust on Strong Wage Growth Data, NFP to Determine Dollar’s Path
Japanese Yen continues to dominate as the strongest currency for the week, finding additional support from Japan's unexpectedly robust wage growth data. However, its rally is currently pausing, with global financial markets redirecting their focus towards the impending US non-farm payroll data.
Dollar, currently ranking as the second strongest currency,...
Yen Dominates with Strong Rally, USD/JPY Enters Bearish Trend Reversal
Yen is trading as the runaway leader in today's market, dominating traders' focus. This rally was initially triggered by comments from BoJ Governor Kazuo Ueda regarding the central bank's potential strategies upon exiting negative interest rates. Buying momentum for then intensified further following Ueda's meeting with Japanese Prime Minister...
Yen Climbs as Markets React to BoJ Ueda’s Talk and China’s Import Contraction
Yen and Dollar strengthened notably in Asian session today, amid a backdrop of risk aversion that's reflected in the continued downturn in Hong Kong's stock market and softness in Japan. A key factor impacting market sentiment is the unexpected slump in China's imports, including the decline in crude oil...
Falling Yields Drive Euro and Sterling Down
Euro and Sterling are falling broadly in European session today, a trend largely driven by notable decrease in benchmark yields in Germany and the UK. German 10-year bund yield has reached its lowest point since June. Simultaneously, UK 10-year gilt yield has dipped below 4% mark for the first...
Market Sentiment Stabilizes, Attention on BoC Decision and US ADP Job
Global market sentiment shows signs of stabilization in Asia today, marked by gains in major indices like Nikkei Hong Kong's HSI. This shift indicates that the markets have largely absorbed the impact of Moody's downgrade of China's rating outlook, redirecting attention towards economic data and central bank policies. The...