Market Overview
Dominant Dollar Breaks Key Resistance Alongside 10-Year Yield
Dollar emerged as the unequivocal winner in the currency markets last week. Both Dollar Index and 10-year US Treasury Yield surged through their respect technically significant 55 W EMA resistance. It remains to be seen whether traders are positioning ahead of the US presidential election results, which are less...
Dollar Pulls Back with Market Caution Rising Before Critical US Events
The forex markets have shifted into consolidation mode today, with Dollar’s rally slowing as profit-taking sets in. Traders are showing caution ahead of two critical events that could reshape the near-term outlook: the upcoming non-farm payroll report next Friday, and the US presidential election the following week. NFP data...
Dollar Cools as Yields Stabilize, Gold Rally Loses Momentum
Dollar has started to ease after a strong rally this week, alongside US Treasury yields. While the greenback is consolidating gains against European majors and Yen, there’s little indication of a substantial pullback for now. Against commodity currencies, Dollar still holds potential for additional gains. Still, traders may avoid...
Euro Offered Relief With PMI Data Backing 25bps ECB Cut in Dec
The forex markets are relatively calm today, as major currency pairs and crosses gyrate within familiar ranges, digesting recent moves, and awaiting fresh data. Euro is having a slight recovery, supported by mixed PMI data that reflected an improving outlook in Germany, offset by a more concerning deterioration in...
Yen Recovers as Japan Breaks Silence on Currency Depreciation, Euro Awaits PMI Data
Japanese Yen saw a modest recovery today after briefly dipping below the 153 mark against Dollar, as Japanese officials finally broke silence on the currency's recent decline. Finance Minister Katsunobu Kato stated that the government is closely monitoring exchange-rate movements with "heightened vigilance, including for any speculative moves." He...
Yen and Nikkei Tumble as Japan Prepares for Snap Election, Dollar Extends its Dominance
Japanese Yen and the Nikkei index have both been hammered this week as political uncertainty ahead of Japan’s snap election seemed to be rattling investor confidence. Yen accelerated its slide against Dollar through 153 mark while Nikkei ended the day with a sharp loss of over 300 points. Prime...
Yen Weakens Further as Japan Remains Silent
Japanese Yen's broad selloff intensified during the quiet Asian trading session today, with the currency continuing to weaken against major counterparts. A key factor behind Yen's decline is the ongoing surge in US and European bond yields, which diminishes the appeal of the low-yielding Yen. More striking, however, is...
Sterling’s Decline Deepens as Dollar Maintains Strength
Sterling weakened broadly in a subdued trading today, with no significant data releases to drive market activity. Investors are awaiting BoE Governor Andrew Bailey's upcoming speech, where he might reaffirm a dovish tone. Earlier this month, in an interview with The Guardian, Bailey hinted at the possibility of becoming...
Rising US Yields Push Dollar Higher, While Yen and Euro Struggle
Dollar strengthened broadly overnight, propelled by the extended rally in US Treasury yields. 10-year yield soared to its highest level since late July, breaching 4.2% mark during Asian trading session. The move reflects growing market expectations that Fed's monetary policy easing will proceed more slowly than initially hoped. Importantly,...
Dollar Hold Firm as Yen Weakens Amid Subdued Trading
In the largely uneventful Asian and European sessions today, major currencies remained within familiar ranges, as the absence of key economic data releases kept markets subdued. Central bank commentary continued to dominate the narrative, particularly from ECB officials, who maintained their dovish stance. However, this comes as little surprise,...
Forex Markets in Consolidation, Bitcoin Struggles at 70k
In the Asian trading session today, the forex markets remained largely in consolidative state, with most major currency pairs moving within familiar ranges. Japanese Yen showed slight firmness, trading in a tight range alongside the Dollar and Kiwi. Conversely, British Pound Sterling softened, accompanied by Loonie and Aussie. The...
Dollar Extends Winning Streak, Though Momentum Hints at Waning Strength
Dollar continued its reign as the strongest currency for yet another week, bolstered by solidifying expectations around gradual and measured rate cut cycle by Fed. The rate cut from ECB provided some additional tailwind for the greenback. However, momentum behind the Dollar's rise remains tepid. Strong risk-on sentiment, coupled...
Dollar Holds Dominance, Sterling Closing In
Dollar remains the top performer for the week, despite a mild pullback today. Sterling jumped into second place, buoyed by stronger-than-expected UK retail sales data. Meanwhile, Canadian Dollar holds third position, although its momentum has waned, suggesting it could slip before the weekly close.
On the weaker side, Swiss Franc...
Sterling Rallies After Strong UK Retail Sales, Yen Recovers on Japan’s Verbal Intervention
Sterling rises broadly today, driven by unexpectedly strong retail sales figures for September. This recovery suggests that the negative impact of weaker-than-expected CPI data earlier in the week has been fully absorbed by the market. While it now seems likely that BoE will proceed with interest rate cuts in...
Dovish ECB Rate Cut Pressures Euro, Gold Breaks to Fresh Record
Euro tumbled broadly after ECB’s decision to cut its deposit rate by 25bps, as widely expected. During the post-meeting press conference, President Christine Lagarde maintained a cautious tone, stressing that ECB is "not pre-committing to a particular rate path." However, her overall stance leaned dovish, with a clear acknowledgment...
Aussie Bounces on Strong Employment Data, But Concerns Over China Keep Gains in Check
Australian Dollar saw a modest rebound in the Asian session today, buoyed by much stronger-than-expected employment data. The Australian labor market continues to display resilience, with full-time jobs rising sharply, pushing the total over 10 million for the first time, while unemployment rate held steady at 4.1%. This robust...
Sterling Weak as BoE Rate Cut Odds Rise, But Downside Limited for Now
Sterling is currently the weakest performer in today’s trading, though selling pressure remains somewhat contained for now. Weaker-than-expected inflation data from the UK further strengthened the case for BoE to cut interest rates in November. More critically, markets are now pricing in a higher probability of another back-to-back rate...
Sterling Drops as UK Inflation Falls More Than Expected, BoE Rate Cut Likely in Nov
Sterling has taken a significant hit after UK inflation data for September showed sharper-than-expected decline, falling below BoE's 2% target again, and hit the lowest level in over three years. Core CPI also fell more than forecasted, indicating a stronger pace of disinflation. Services prices, a key inflation driver,...
Canadian Dollar Slumps as Inflation Miss Heightens BoC 50bps Cut Expectations
Canadian Dollar weakens broadly decline in early US session following weaker-than-expected inflation data. The drop in headline CPI, driven primarily by falling gasoline prices, was steeper than anticipated. However, core inflation measures, especially the closely-watched CPI common, remained near 2% level. This further solidifies expectations that BoC would accelerate...
Dollar Gains Amid Mixed Sentiment, Nikkei Soars Follow US, While China Struggles
Risk sentiment in Asia was mixed today. Japan's Nikkei 225 index extended its rally and broke above the 40k mark for the first time in three months. This momentum firstly follows another record close on Wall Street overnight. Secondly, contributing to the optimism are growing expectations that BoJ may...