Market Overview
Dollar Down Again on PCE Inflation, Yen Reverses Too
Dollar is reversing much of yesterday's gain as both headline and core PCE price indexes showed more than expected moderation. Meanwhile, Yen is also reversing earlier gains around BoJ policy decisions. On the other hand, European majors are making a notable comeback, with Sterling outperforming Euro and Swiss Franc....
Yen Skyrockets as BoJ Moves a Step Towards Stimulus Exit, Dollar Staying Firm
Yen was already rallying ahead of BoJ policy decision, and managed to maintain most of its advances, despite some post-announcement jitters. Initial reactions saw some gains pared back as the policy appeared largely unchanged on the surface. However, some key alterations, including the central bank's decision to buy 10-year...
Dollar Resurges after Strong GDP Data, Euro Weakens Post ECB Rate Hike
Euro turns weaker after ECB's expected rate hike. Downside momentum is also picking up when ECB President Christine Lagarde indicated that even minor alterations in the statement's phrasing were intentional. ECB has shifted its wording from interest rates "will be brought to" to will be "set" at a sufficiently...
Bullish Sentiment Surfaces in Asia after Fed Hike, ECB and US GDP Awaited
Asian markets are trading in positive mood today, even though US stocks were unmoved by FOMC's rate hike overnight. Fed Chair Jerome Powell was predictably non-committal regarding next policy decision. But investors appear content to go along with the prevailing trend. Meanwhile, this upbeat sentiment is giving a notable...
Dollar Mixed as FOMC Looms, Aussie Selloff Continues
The financial markets appear to be a little on risk-off mode today, as FOMC rate decision is awaited. Additionally, ECB will announce policy decision tomorrow, followed by BoJ on Friday. Commodity currencies are the worst performers so far, as led by Aussie which was pressured following CPI data earlier...
Aussie Recovers after Brief CPI Triggered; Traders Await FOMC Hike
In today's Asian trading, Australian Dollar took a brief dip following release of consumer inflation data that indicated more rapid deceleration than predicted. This dampened expectations for an additional rate hike by RBA in early August. Nonetheless, Aussie managed to regain stability promptly, reversing some of the selloff. As...
Euro Trades Lower on Disappointing German Ifo Data
Euro falls broadly today following release of weaker than expected German Ifo business climate data, although losses remain somewhat contained for the moment. It appears traders are holding their bets in anticipation of the upcoming FOMC and ECB rate decisions. Further, with July drawing to a close and the...
Aussie Rises With Yuan and Copper, Gold Poised for Rebound
Australian Dollar advances broadly today, buoyed by optimism surrounding news of stimulus from the Chinese government. This positive outlook has also lifted sentiment for Chinese Yuan and Copper. New Zealand Dollar has similarly benefited from this favorable sentiment, which is providing support to Sterling as well. Meanwhile, Dollar is...
Euro and Sterling Sink on Disappointing PMI Data, Bitcoin Tumbling
Euro and British Pound face some downward pressure today, following dismal PMI data that raises concerns about the prospect of further economic contraction in Eurozone and UK. With the German Ifo business climate index on the horizon tomorrow and ECB rate decision due on Thursday, Euro is likely to...
PMI Data Highlight Today, But Main Focuses on Fed and ECB Later in the Week
As a typical Monday Asian session commences, activity in the financial markets is somewhat muted. Nikkei is displaying a notable rise, although this primarily reflects continuation of its recent flip-flopping pattern within an established range, indicative of ongoing consolidation. A similar pattern is observed across other major Asian markets...
Dollar Turned into Consolidation Phase as Selling Passed Climax
Dollar recovered broadly last week and it seemed to have emerged from its near-term selling climax. While it's premature to call for bullish trend reversal, the greenback has likely entered at least a consolidation phase, with potential for a more robust recovery on the horizon. Dollar's next move will...
Yen Plunges Amidst BoJ’s Speculations; Fresh Selling Seen in Sterling
Japanese Yen experienced a sharp fall today after reports emerged suggesting that BoJ is "leaning towards" maintaining its current yield curve control policy unchanged in the upcoming meeting next week. The development has come in the wake of Japanese inflation data for June, which showed a relatively unchanged yet...
Sterling Recovers after Strong Retail Sales; Dollar Slips after Yesterday’s Rebound
British Pound is making broad recoveries following stronger than anticipated retail sales, although signs of a durable rebound remain elusive. Concurrently, Japanese Yen displayed general weakness. Despite solid inflation data from Japan, the figures were not robust enough to force a policy shift from BoJ. Australian and New Zealand...
Dollar Attempting Stronger Rebound in Subdued Trading
Today's trading has been notably subdued after Asian session, characterized by limited news flow from Europe, and just US jobless claims and Philadelphia Fed survey in early US session. Sterling weakness continues to be a dominant theme for the week, experiencing a fresh round of selling as US session...
Australian Dollar Rebounds Notably on Employment Data, Resurgence in Copper and Yuan
Australian Dollar is making a notable rebound today, largely supported by strong employment data, rebound in Copper price, and a resurgence in Chinese Yuan. In tandem, New Zealand Dollar is closely trailing the second strongest performer. British Pound languishes as the worst performer, still feeling the drag from yesterday's...
Sterling Selloff Continues Amid Dwindling Expectations of Aggressive BoE Hike, Dollar Might Recover Further
Sterling continues its descent, which was spurred on by the fallout from UK CPI data, in early US session. The odds of a 50 bps rate hike from BoE in August are being reassessed, now standing at a mere 50% probability. Furthermore, expectations of a peak rate have also...
Sterling Takes a Dive as UK Inflation Data Ease Some Pressure on BoE
Sterling falls sharply following the release of June's UK CPI figures which revealed faster than expected slowdown in both headline and core inflation. Despite the persistent high inflation levels, these figures suggest BoE may not need to raise interest rates as aggressively as previously anticipated by some economists, potentially...
Canadian Dollar Dips Slightly after CPI, Euro Rally Fades
Canadian Dollar is having a mild slump in early US session following lower-than-expected headline CPI reading. However, the currency's slide was largely restrained, primarily due to the base-year effects of gasoline prices contributing to the deceleration in consumer inflation. Concurrently, Australian and New Zealand Dollars also experienced a slight...
Markets in Waiting Mode ahead of Canada CPI and US Retail Sales, Eyes on USD/CAD
Asian markets presented a subdued trading environment today, despite overnight rallies in their US counterparts. A notable exception is that Hong Kong's stock market underwent a significant tumble, taking a step back after a day off. Elsewhere, indices generally hovered around flat levels within a tight range. In the...
Commodities Down in Mild Risk-off Markets, Swiss Franc Firm With Dollar and Euro
With mild risk aversion permeating the markets, Gold and some other commodities are weakening notably today. China's latest economic indicators paint a dreary picture – a sluggish recovery, dampened consumer demand, record youth unemployment, and escalating deflation risk. With a key meeting of the Chinese Communist Party's Politburo around...