Market Overview
Euro Leads European Higher Amid Improving German Consumer Sentiment and US Regional Bank Worries
Euro is leading European majors higher today, with a little boost from improving consumer sentiment in Germany. However, it is likely that the rise is more due to concerns over regional bank woes in the US, which are triggering some risk-off sentiment. Australian Dollar is the worst performer for...
Risk Aversion Gains Momentum, Aussie Heading Back to Year Low Against Dollar
Risk aversion is intensifying as US stocks tumbled significantly overnight, following First Republic Bank's earnings report, which reignited concerns about the broader banking sector. The troubled regional bank's shares plummeted by nearly half. Concurrently, bonds surged higher, pushing 10-year yield below 3.4% handle. Japanese Yen and Swiss Franc surged...
Euro Rally Falters, Yen Recovers, Aussie Extends Decline
Selloff in Australian and to a lesser extent Canadian Dollar is the main theme in the markets today, but market directions are not clear elsewhere. Euro's rally attempt against Dollar and Yen faltered following deep retreat in European benchmark yields. But the common currency is making progress in upside...
Hawkish ECB Comments Boost Euro, AUD and CAD Struggle
Euro is making broad gains in Asian session, fueled by hawkish comments from a top ECB official who suggested that the next rate hike could be a 50bps one. Euro's strength is also lifting the Swiss Franc, while Sterling remains firm but lags slightly behind. In contrast, Australian and...
Yen Falls as BoJ Ueda Dims Hopes of Policy Shift; CHF/JPY Ready for New High
Japanese Yen suffers broad sell-off today, following comments from BoJ Governor Kazuo Ueda that seem to have quashed hopes of even a minor shift in monetary policy this week. Meanwhile, overall market sentiment remains steady, with Australian and Canadian Dollars also facing selling pressure. On the other hand, European...
Aussie and Kiwi Selloff Continues; Key Economic Events Expected Later This Week
In today's Asian trading session, Australian and New Zealand dollars extend their decline from late last week, weakening broadly. Concurrently, Japanese Yen is trailing as the next weakest currency. This picture aligns with the steady risk sentiment across Asia, except for Hong Kong stocks. On the other hand, Dollar,...
Market Focused on Central Bank Expectations, Commodity Currencies Struggle
Last week, market movements centered around central bank policy expectations, with limited clear alternate influences. Comments from Fed officials and recent economic data suggest that Fed's tightening cycle is not over yet. This pushed US Treasury yields higher, but stock market indexes remained relatively stable. The steady market sentiment...
Yen Extending Rally While Euro and Swiss Franc Stay Firm
Japanese Yen is extending its rally in the early US session holding on to its gains and emerging as the second strongest currency for the week, just behind Swiss Franc. Despite persistently above-target inflation data, it remains unlikely that BoJ will make a shift in monetary policy next week....
Yen Rises on Persistent Inflation, Focus Turns to PMI Data and Canada’s Retail Sales
Japanese Yen rose broadly in today's Asian trading session following the release of CPI data, indicating inflation remains persistently above BoJ's target. While it is still early for BoJ to make any changes to monetary policy, a case for a shift later this year is building. Meanwhile, Dollar and...
Swiss Franc Gains Against Euro, Kiwi Struggle Continues
Swiss Franc is currently the strongest performer for the day, showing a notable gain the Euro. Japanese Yen and Australian Dollar follow closely, indicating that the market moves are not predominantly driven by risk aversion. In contrast, New Zealand Dollar is the weakest, as lower-than-expected inflation data increases hopes...
NZ Dollar Weakens on Lower Inflation Data, Dragging Down Aussie
New Zealand Dollar dropped broadly in Asian session today after a lower-than-expected consumer inflation reading increased speculation that the next RBNZ rate hike may be the last in the current cycle. This development also pulled Australian Dollar down, making them the day's worst performers so far. In contrast, Swiss...
Sterling Strengthens on Inflation Data, More BoE Hike(s) Expected
Sterling climbed broadly today following the release of data showing that March's inflation slowed less than expected, with CPI remaining in double digits. This development supports expectations of a further 25bps rate hike by BOE in May, with some speculating that an additional increase could bring the terminal rate...
Markets Lack Direction as UK CPI Data Looms; Sterling’s Path Hinges on Inflation Numbers
The markets have been somewhat directionless this week, with most major currencies remaining within last week's trading ranges against one another, excluding a few Yen pairs. US stock indexes are consolidating in tight ranges with minor pullbacks, while the 10-year yield struggles below a short-term resistance level. Gold prices...
Canadian Dollar Weakens on Cooling Consumer Inflation, Dollar Reversing Gains
Canadian Dollar weakens broadly in early US session, after data showed that consumer inflation slowed notably in March, in line with market expectations. However, Dollar has emerged as the day's worst performer, reversing some of this week's gains, even when compared to Yen. In contrast, Australian and New Zealand...
Australian Dollar Rises on RBA Minutes and Strong Chinese GDP Data
Australian Dollar is gaining ground today, supported by RBA minutes that revealed a rate hike was discussed during the April meeting. Encouragingly, stronger than expected Chinese GDP data is also contributing to the Aussie's rise. Meanwhile, Dollar's momentum has waned after yesterday's rally, and Yen remains under broad pressure....
Market Themes Abound, But No Clear Dominant Driver Emerges Today
Multiple themes are unfolding in the markets today without any one taking center stage. Dollar is gaining strength, particularly against Yen, supported by an extended rebound in Treasury yields. Euro, on the other hand, is losing ground to the Pound after failing to break through a key near-term resistance...
Yen Extending Decline, CPIs and PMIs to Take Spotlights
Asian trading remains relatively subdued today, with the exception of Yen's ongoing selloff. Meanwhile, Dollar attempts a weak recovery, while Euro and New Zealand Dollar are softer for now. The focus may shift away from the greenback this week, as significant data releases from other regions take center stage....
Dollar’s Fate Uncertain Amid Mixed Week: Risk Sentiment, Stocks, and Bonds in Focus
Dollar fell to its lowest level of the year and breached a critical support, after being under pressure for most of the week. Yet, it staged a recovery towards the end, closing mixed only. Decelerating US inflation data was welcomed by risk market investors, but a lower terminal rate...
Dollar Attempts Recovery After Poor Retail Sales, But No Bottoming Confirmed
Dollar is attempting to rebound in early trading sessions, as market sentiment is shaken by disappointing US retail sales data. Furthermore, a top Fed official has cautioned that interest rates could remain high for a more extended period than previously anticipated by the market. Nevertheless, the greenback continues to...
Dollar Dives as Disinflation Solidifies Fed’s Tightening Cycle End; Stocks Rise
As disinflation process in the US picks up steam, Dollar continues its relentless descent, fueling the belief that Fed's tightening cycle is close to its curtain call. This evolving sentiment has not only lifted US stocks overnight but also spilled over into Asian session, painting a positive picture for...