Market Overview
Dollar Weakens as Tariff Boost Fades; FOMC Minutes and RBNZ in the Spotlight
Dollar is losing some ground as markets enter into US session, as the initial support from US President-elect Donald Trump’s tariff announcement dissipated. Although the greenback softened broadly, it is still holding onto gains against Loonie and Aussie, with traders as Trump’s tariffs are targeting Canada, China, alongside Mexico.
Market...
Trump’s Tariff Threats Weigh on CAD and AUD; Dollar and Yen Gain Ground
Dollar strengthened broadly in Asian session, especially against commodity currencies, following a bold announcement from President-elect Donald Trump. Trump pledged to impose steep tariffs on Canada, Mexico, and China to pressure them into halting fentanyl trafficking to the US.
The announcement came as markets were digesting the positive sentiment surrounding...
Dollar Stays Soft With Falling Yields and Stocks Rally
Dollar remains under pressure as the market heads into the US session, with selling momentum picks up slightly alongside a continued decline in Treasury yields. US stock futures are staging a robust rally, reflecting optimism over President-elect Donald Trump's selection of Scott Bessent as Treasury Secretary. Bessent is viewed...
Dollar Weakens Amid US Treasury Secretary Pick, But Resilience May Prevail
Dollar traded broadly lower in Asian session as markets reacted to President-elect Donald Trump’s appointment of Scott Bessent, a seasoned fund manager, as Treasury Secretary. Bessent’s stance aligns with Trump’s policies on tariffs, though his pragmatic approach has been perceived as a stabilizing factor. He advocates for tariffs to...
Euro Weakens Sharply, Sterling and Swiss Franc Also Under Pressure
Euro stole the limelight last week with a steep selloff triggered by poor activity data. This downturn has intensified the pressing need for the ECB to ease monetary policy swiftly back to neutral levels. While Euro's decline was pronounced, Sterling and the Swiss Franc are not far behind, each...
Euro and Sterling Under Fire after PMIs, Swiss Franc Reverses Gains
European majors are experiencing significant selling pressure today, with Euro leading the declines. Euro sharply depreciated as traders increased their bets on an aggressive 50 bps rate cut by ECB in December, following dismal PMI data. Market expectations for such a cut have surged to 50%, a substantial rise...
Swiss Franc and Dollar Gain as Putin Warns of Global War Escalation, Euro Awaits PMIs
Swiss Franc and US Dollar appreciated broadly today as investors sought safe-haven assets in response to escalating geopolitical risks. Gold extended its near-term rebound, while Bitcoin surged to a new record high, reflecting heightened demand for alternative stores of value.
The catalyst for this shift was a warning from Russian...
Yen Rebounds on Ueda’s Openness; Euro Starting to Break Down
Yen rebounded broadly today as market participants interpreted comments from BoJ Governor Kazuo Ueda as a potential signal for a rate hike in December. Ueda noted that there is still a month before the next policy meeting and that the central bank will have a substantial amount of data...
Euro Soft Awaiting Breakout; Bitcoin Rockets to New Highs
Euro continues to trade on the softer side in an otherwise directionless market. Yet it's holding above its low against Dollar, lacking sufficient momentum for a decisive breakout. Market participants and ECB policymakers are grappling with critical questions regarding the pace at which interest rates should be reduced towards...
Sterling Gains Slightly as UK Inflation Accelerates; Euro Struggles Despite Wage Surge
Sterling posted modest gains today after the UK reported stronger-than-expected rebound in headline inflation for October. More importantly, both core CPI and services price growth also increased, indicating that underlying inflation is gaining momentum.
This resurgence in inflation diminishes the likelihood of BoE implementing another rate cut in December. Market...
Sentiment Stabilization Reverses Yen Gains and Halts Gold’s Rebound
Yen fell broadly during Asian session today, reversing all of this week's earlier gains. Market sentiment has calmed somewhat despite the escalation in Russia's war in Ukraine, as there is no clear intensification toward a nuclear conflict. US Treasury yields have stabilized after yesterday's decline, and Gold's rebound has...
Yen and Swiss Franc Climb as Ukraine War Intensifies on 1000th Day
The European session saw a significant shift toward risk aversion as geopolitical tensions escalated on the 1,000th day of Russia's war in Ukraine. Investors sought refuge in major US and European treasuries, leading to a notable decline in yields. Safe-haven assets such as Gold, Swiss Franc, and Japanese Yen...
Forex Consolidation Continues; Eyes on Canada’s CPI
The forex markets remain subdued in Asian session, with all major pairs and crosses confined within yesterday’s tight ranges, and many still constrained within last week’s bounds. Among the majors, Australian Dollar is showing slight strength supported by hawkish RBA minutes, followed by Swiss Franc and Canadian Dollar. Meanwhile,...
Yen Staying Soft on Rising US Yields, Aussie Vulnerable to Further Declines Ahead of RBA Minutes
The forex markets are largely consolidating today, with no major developments to drive decisive moves. Euro is showing some recovery, but the uptick appears more like a corrective bounce than a reversal. Sterling and Swiss Franc are following similar patterns, with modest strength lacking the momentum needed for sustained...
Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data
Yen weakened broadly during the Asian session today, as traders expressed disappointment with BoJ Governor Kazuo Ueda’s remarks. Ueda repeated familiar stances on monetary policy but refrained from offering any signals regarding a December rate hike. This lack of clarity left markets unimpressed. However, the currency’s losses have been...
Dollar Reasserts Dominance on Fed Expectations and Risk Sentiment
Dollar regained its dominance in the currency markets last week, surging ahead despite US Treasury yields struggling to break through resistance levels. Investors continued to adjust their expectations for Fed's monetary policy, increasingly anticipating a slower pace of interest rate cuts with fewer adjustments in the coming year. This...
Dollar Holds Weekly Lead Despite Fading Momentum Amid Mixed Retail Data
Dollar is trading slightly lower as the market enters the final US session of the week, with mixed US retail sales data failing to provide fresh momentum for the greenback. The currency appears to be taking a breather as the initial impact of the "Trump Trade" begins to fade....
Forex Market Pauses Ahead of US Retail Sales, UK GDP
The forex market entered a phase of relative calm during Asian session today, with major currency pairs and crosses having limited movement. The Dollar softened slightly overnight with to retreat in US Treasury yields, but the losses have been minimal. The greenback found support from Fed Chair Jerome Powell's...
Dollar Gains Capped by 10-Year Yield’s Struggle with Critical Resistance Level
While Dollar extends recent gains following stronger than expected PPI data in early US session, it's upward momentum was somewhat capped by the retreat in treasury yields as their correlation continues. Nevertheless, the greenback is still staying as the strongest one for the day and the week. It remains...
Dollar Gains Momentum on Fed Outlook, Copper Decline Weighs on Aussie
Dollar strengthened broadly overnight, underpinned by the solid rebound in US Treasury yields, while stock markets closed mixed. Stalling disinflation progress, as indicated by the latest CPI data, reinforced the likelihood that Fed will only adopt a gradual approach to lowering interest rates in the future. The aggressive 50bps...