Market Overview

The forex markets are lacking clear direction so far this week. It feels there is a lack of interest among traders ahead of Jackson Hole symposium. Euro attempted to resume recent rally against Dollar. While EUR/USD takes out a near term channel resistance, it's staying below 1.1846 resistance. Thus, the consolidation from 1.1908 is likely still in progress. GBP/USD and USD/JPY are also staying in very tight range. Canadian dollar strengthens with very weak momentum but USD/CAD is still in progress for deeper decline. The economic calendar is relatively light today but Canadian retail sales could trigger firmer momentum in USD/CAD.

Euro is trying to reverse from initial dip today but buying is so far limited. Traders are getting cautious ahead of ECB President Mario Draghi's speech in the Jackson Hole symposium. There were media reports last week that Draghi won't delivery anything outside of the topic of the symposium, that is, "Fostering a Dynamic Global Economy". And it's also clear that ECB will wait for more economic data, especially on inflation, and discuss policy change in the September meeting. Hence, some analysts argue that Euro could indeed be lifted if Draghi meets this expectation by saying nothing. But of course, what Fed chair Janet Yellen delivers is another big factor for both Dollar and Euro. Markets are generally not convinced that Fed is going to hike again in December. The greenback could be given a lift instead and drag the Euro down if Yellen shows no concern over recent tame inflation reading.

The financial markets started the week relatively quietly. US and South Korea have kicked off the join annual military exercise today. North Korea warned that the drills would worsen the tensions by "throwing fuel on fire". But markets have little reaction to the news so far. Yen is trading mildly higher, possibly because of that, but strength is limited. On the other hand, European majors are broadly softer. The economic calendar is rather light today. UK Rightmove house price index dropped -0.9% mom in August. Japan all industry activity index rose 0.4% mom in June, in line with expectations. Canada wholesale sales is the only other notable featured data. Markets will have one eye on the developments in the White House, and another eye looking forward to Jackson Hole symposium later in the week.

Risk aversion was again the main theme in the financial markets last week. But this time, commodity currencies ended as the strongest ones. Sterling was hardest hit as disappointing inflation reading further killed the chance of an early BoE hike. Euro followed on report that ECB President Draghi won't address monetary policy in the upcoming Jackson Hole symposium this week. Also, the common currency was pressured as ECB minutes showed worries on Euro overshooting its strength. Dollar suffered much on the political turmoil in the White House but it ended slightly higher against most except Canadian Dollar and Australian Dollar. Meanwhile Yen and Swiss Franc failed to capitalize on risk aversion and ended the week mixed.

The financial markets some what stabilized mildly after the selloff triggered by the terrorist attack in Spain and drama in the White House. At the time of writing, FTSE is trading down -0.1% while DAX is down -0.4%. US futures point to a flat open. In the currency markets, Dollar is trading broadly down today, but for the week, it's still in black against Euro and Sterling. The Pound will most likely end the week as the weakest. Commodity currencies are holding the ground even though yen surged since yesterday. In particular, Canadian Dollar is helped by positive inflation data. In other markets, Gold finally takes out 1300 handle today as buying gains steam.

The Japanese Yen takes the driving seat on risk aversion again. The global financial markets are rocked by the deadly terrorist attack in Barcelona and extended turmoil in the US White House. DOW closed down -274.14 points or -1.24% at 21750.73, taken out near term support at 21842.74. Same picture is seen in S&P 500 as it lost -38.1% or -1.54% to close at 2430.01, also taken out near term support at 2437.75. Nikkei follow in Asian session and slumps to 3-month low, and is trading down -1.1% at the time of writing. In other markets, gold is firm above 1290 but yet to find follow through buying for 1300 handle. WTI crude oil is trying to regain 47 after extending recent decline to as low as 46.46.

Euro trades broadly lower today as ECB monetary policy meeting accounts show that policy makers are concerned with the currency's strength. Meanwhile, Dollar regains much ground against most currencies. Markets reassessed FOMC minutes released yesterday as saw them not as dovish as initially perceive. Overall, the forex markets are mixed with Aussie and Yen trading as the strongest ones at the same time. In other markets, Gold is staying firm above 1290 but lacks follow through buying for a take on 1300 handle yet. WTI crude oil is extending recent decline to as low as 46.46 so far.

Dollar was sold off overnight as FOMC minutes showed worries of members over inflation. Political drama in the White House also added some weight to the greenback. Notable strength is seen in the Japanese Yen in Asian session. But commodity currencies are generally the strongest ones over the week. Weakness in the greenback was accompanied by strength in bonds, where 10 year yield dropped -0.04 to close at 2.226. Gold rode the wave and is back above 1290 after dipping to as low as 1272.7. And Gold looks set to have another attempt on 1300. WTI crude oil, on the other hand, continues to suffer and dipped to as low as 467.67, extending the decline from recent high at 50.43.

Commodity currencies are the strongest performers today as lifted by firm risk appetite. European indices are trading in black while US futures point to higher open. Sterling is staging a relief recovery after solid job data. Euro, on the other hand, trades softer on report that ECB President Mario Draghi will not sign policy changes in the upcoming Jackson Hole conference. Yen and Swiss are also weak in risk seeking markets. Nonetheless, the greenback remains the strongest one for the week as markets await FOMC minutes.

Dollar pares back some gains today but remains the strongest one for the week. FOMC minutes will be a main focus for the day which could decide whether the greenback can extend its rebound. So far, technically, such rebound in Dollar doesn't warrant a trend reversal yet. For example, EUR/USD is held above 1.1688 minor support and well above 1.1606 fibonacci level. That is, EUR/USD's near term outlook remains bullish. USD/CHF is help below 0.9772 resistance and thus, not confirming resumption of rebound from 0.9473. AUD/USD is also held well above 0.7785 cluster support, and the pull back from 0.8065 is seen as a correction. The main exception is GBP/USD which is building up the case of bearish reversal, thanks to Sterling's own weakness.

Dollar is extending this week's rebound in early US session after a string of solid economic data. Meanwhile, Sterling is trading as one of the weakest after another CPI miss. From US, headline retail sales rose 0.6% in July versus expectation of 0.4%. Ex-auto sales rose 0.5% versus expectation of 0.3%. Empire state manufacturing jumped to 25.2 in August and beat expectation of 10.3%. Import price index rose 0.1% mom in July. Technically, GBP/USD's break of 1.2932 is seen as a key near term bearish signal and the pair is now heading back to 1.2588 support. USD/JPY's break of 110.62 resistance also is also taken as a sign of near term reversal. But for the moment, EUR/USD is holding well above 1.1606 and maintains bullish outlook.

Dollar trades notably higher against Japanese Yen and Swiss Franc as comments from a top Fed official revived the speculation of one more hike this year. On the background, risk aversion also receded as threat of imminent war between US and North Korea abated. DOW rebounded 0.62% to close at 21993.71. S&P 500 also gained 1.00% to close at 24.52. Sentiment in Asian session is also positive with Nikkei trading up 1.2% at the time of writing. While the greenback is trying to stage a general rebound, it should be noted that Euro is staying firm too. EUR/USD is bounded in range of 1.1688/1908, maintaining near term bullishness. Also, we don't see any solid buying to push Dollar index back above 94.28 key near term resistance yet.

Dollar rebounds broadly today while Yen and Swiss Franc lead the way down as risk aversion seems to have eased. US officials tried to talk down the risk of war with North Korea. European indices are trading generally in positive as FTSE is gaining 0.5% while DAX is is up 1.1%. US futures point to higher open where DOW might have triple digit gain. In other markets, Gold starts to feel heavy ahead of 1300 and dips back below 1290 today. WTI crude oil is struggling in tight range below 49. The US economic calendar is empty today. The immediate focus is that US President Donald Trump would order a broad probe of China's unfair trade practices today including intellectual property thefts.

Dollar recovers broadly today as the markets are calmed down from the concerns over US-North Korea tensions. Meanwhile, Yen and Swiss Franc also soften mildly as a result. There was no further drastic development regarding the tension during the weekend. Chinese President Xi Jinping had a telephone call with US President Donald Trump on Saturday and urged a peaceful resolution to the issue, and all sides to avoid words or actions that escalate the tensions. Focus will temporary turn back to minutes of Fed, RBA and ECB, as well as a large number of global economic data. But markets will also keep one eye on the US-North Korea development.

Risk aversion dominated the markets last week as tension between US and North Korea suddenly intensified on verbal exchanges of the leaders. DOW initial made new record high at 22179.11 but ended the week down -234.49 pts or -1.06% at 21858.32. S&P 500 closed down -35.51 pts or -1.43% at 2441.32. European indices were harder hit with DAX closed down -283.66 pts or -2.31%. FTSE closed down -201.75 pts or -2.69%. Japan was on holiday on Friday but Hong Kong HSI closed the week down -2.46%. US yields was further hit by tame CPI and PPI data with 10 year yield closed at 2.189, taking out 2.225 near term support decisively. In the currency markets, Yen and Swiss Franc ended as the strongest ones on risk aversion. Commodity currencies ended as the weakest ones, followed by Sterling. Gold surged on risk aversion and Dollar weakness and closed up 2.4% at 1295. WTI crude oil traded like a passerby and struggled to regain 50 on another attempt.

Dollar suffers selloff against most major currencies except Sterling after slightly weaker than expected CPI data. But it's Euro that really shines in early US session, extending recent rally against Sterling and is trying to rebound against Yen and Swiss Franc. That could be technical driven as both EUR/JPY and EUR/CHF are close to near term fibonacci support. Still, for the week as a whole, Yen and Swiss Franc are still trading as the strongest currencies. Commodity currencies and Sterling will likely end as the weakest on risk aversion.

Risk aversion continues to dominate the global financial markets. DOW dropped -204.69 pts, or -0.93% overnight to close at 21844.01, comparing to intra-week high at 22179.11. S&P 500 also lost -35.81 pts, or -1.45% to close at 2438.21. Selloff in equities extends in Asian session. While Japan is on holiday, but Hong Kong HSI is trading down -1.8%, Korean KOSPI down -1.7% and Australia ASX 200 down -1.3%. In the currency markets, Japanese yen remains the strongest currency, followed by Swiss Franc and commodity currencies are all under pressure. Gold is staying firm above 1290 and is still on course for 1300 handle. WTI crude oil, however, is heading back to 48 after breaching 50 briefly.

There is no change in the general risk-aversion mode in the financial markets today. Investors continue to watch the development of US-North Korea tension with much caution. Yen remains the strongest one but Aussie and Canadian Dollar are catching up. Gold extends recent rally and breaches 1290, setting to take on 1300 handle. WTI crude oil was lifted by news that OPEC raised demand forecast and breaches 50 handle finally. Dollar trades lower in early US session, in particular against Japanese Yen after disappointing PPI. New Zealand Dollar remains the weakest one after dovish RBNZ comments.

Risk aversion remains the main theme in the markets. Commodity currencies remain the weakest ones while Yen is staying firm. Dollar trades mildly higher but there is no follow through buying yet. RBNZ rate decision triggered a brief recovery in New Zealand Dollar but Kiwi is quickly back under pressure. Selloff in stocks seem to have stabilized though, with Nikkei hovering in tight range in red today, down around -0.15%. Gold is hovering between 1280/5 after yesterday's rally and is waiting for fresh inspiration. US-North Korea tension will remain the main focus today while data from UK and US will catch most attention.

Yen and Swiss Franc remain the strongest major currencies today with US-North Korean tensions as the main theme of the markets. Japan Nikkei suffered steep selloff today by losing -1.29% to close at 19738.71. Major European indices follow with FTSE down -0.8%, DAX down -1.5% and CAC down -1.8% at the time of writing. Among the currencies, risk sensitive Aussie and Canadian Dollar are hardest hit, followed by Sterling and Euro. Risk aversion pushes gold to as high as 1282.4 so far today as recent rebound resumes. WTI continues to tread water between 48.5 and 49.0.