Market Overview
Euro Mildly Lower after Dovish ECB Hike, Yen Resuming Rally
Euro weakens mildly following the ECB's decision to increase interest rates by 50bps, in line with their previously stated intentions. However, the absence of any reference to future rate hikes in the accompanying statement hints at the possibility of a pause in upcoming monetary policy meetings. Concurrently, Yen is...
Euro and Swiss Franc Struggle as Markets Eye ECB Rate Decision Amid Ongoing Uncertainty
Daily Report:
Despite regaining some ground in the Asian session, Euro continues to trade as the week's weakest performer alongside Swiss Franc. Today's ECB rate announcement is the primary focus for investors, as uncertainty looms over the extent of the anticipated rate hike. The SNB's efforts to stabilize the markets...
Bonds Surge Again Amid Global Financial Crisis Fears; Euro Down, Dollar and Yen Up
The financial markets are once again in a state of panic as Credit Suisse saw its shares plummet by over -20% and hit a new record low, dragging European stocks deeply down with it. Bonds are becoming the go-to for worried investors again, with US 10-year yield breaking the...
Calm Markets Shrug Mixed China Data, Euro Lacks Momentum ahead of ECB
After days of market turbulence, Asian session has been relatively calm today. US stocks recovered overnight with a strong rebound in treasury yields, helping to calm market sentiments. Mixed economic data from China did not seem to have any significant impact on the markets.
With the banking crisis slowly fading...
Dollar Weakens as CPI Slowed as Expected, Easing Pressure on Fed
Dollar weakened slightly in early US session, following the release of economic data which showed that consumer inflation slowed in February to the level as expected. The absence of an upside surprise in the CPI readings means that Fed should be in a more comfortable position to address uncertainties...
Banking Crisis Overshadows US CPI Release, Fed Hike Expectations Lowered
Investors are eagerly awaiting the release of February US CPI figures today, although the banking crisis has overshadowed the event. The possibility of a 50bps hike by Fed next week has been priced out by the market. While traders still anticipate a 25bps hike, with a likelihood of over...
Sentiment Fragile as Banking Worries Remain, Yen and Swiss Franc Soar
The fallout from the collapse of Silicon Valley Bank continues to unsettle investors. Despite measures announced on Sunday by US Treasury, FDIC and Fed to calm the markets, concerns remain. European indexes saw sharp declines led by bank stocks, while benchmark treasury yields fell.
Additionally, the market is also showing...
Sentiment Stabilized After Measures on SVB, Focus Turning Back to US CPI and ECB Hike
Mixed market sentiment prevails in the Asian session today, as Nikkei is weighed down by selloff in bank stocks, while Hong Kong's HSI sees a recovery. US futures are also seeing a strong rebound. The announcement of measures by the US government and Fed to stabilize the situation surrounding...
Silicon Valley Bank’s Collapse Outweighs Interest Rate Developments
Last week, investors were caught off guard by a series of surprises. However, the largest bank failure in the US since 2008 proved to be the most overwhelming for them. The risks of contagion from Silicon Valley Bank appeared to outweigh concerns about higher interest rates, inflation, and recession....
Mixed NFP Report Weighs on Dollar For Now, Swiss Franc Shines
Dollar experienced a significant fall during early US trading hours following a mixed non-farm payroll report. Although the headline job growth was strong, the increase in the unemployment rate and the slowdown in wage growth could give the Federal Reserve something to think about beyond March. Meanwhile, Canadian dollar...
Market Sentiment Turns Increasingly Negative ahead of NFP Report
Investor sentiment is growing increasingly negative, as the steep selloff in US stocks carried over to the Asian session. Additionally, US 10-year yield is taking a significant plunge and is threatening 3.8 handle. Traders are bracing for more bearish developments, which could be sparked by today's non-farm payroll report....
Yen Gaining Some Ground, Looking Forward to BoJ
Yen is gaining ground against its major counterparts today, as traders are probably lightening up short positions ahead of BoJ policy decision tomorrow. Sterling is also showing signs of strength. However, overall, market sentiment remains cautious, with Dollar retraces some of this week's gains. The most significant upcoming events...
Markets Quiet as Traders Hold Off Significant Moves For Now
In the Asian session, forex markets are quiet with most pairs and crosses trading within yesterday's range. Although Fed Chair Jerome Powell softened his hawkish tone slightly, noting that "no decision has been made" on the next rate move, the markets remain convinced of a 50bps rate hike later...
Dollar Takes a Breather and Shrugs Strong ADP Job Numbers
Dollar is currently taking a pause from its recent gains, with traders digesting the impact of Fed Chair Jerome Powell's previous testimony. While Powell will appear again in front of Congress today, there shouldn't be any more surprises. The market has also remained relatively unmoved by a stronger-than-expected ADP...
Hawkish Powell Shot Dollar Higher, BoC Next
In a surprising turn of events, the clear and direct hawkish message delivered by Fed Chair Jerome Powell has sent Dollar soaring and stocks tumbling overnight. The greenback maintained its solid gains during Asian session, and all eyes are now on Friday's non-farm payroll report to see what the...
Markets Eye Fed Chair Powell’s Testimony as Dollar Recovers Broadly
Dollar is gaining strength across the board as markets prepare for Fed Chair Jerome Powell's semi-annual testimony in Congress. Powell's views on the disinflationary process are expected to be a key focus, with traders also hoping for hints on the size of the upcoming rate hike and the outlook...
Australian Dollar Falls on Subtle Dovish Twist, All Eyes on Fed Chair’s Testimony
Australian dollar experienced a broad decline today following a subtle dovish shift in the statement, raising speculation of a potential earlier pause in the tightening cycle. While the general expectation of another hike in April remains unchanged, May is getting slightly more uncertain. So far, New Zealand dollar is...
Swiss Franc Surges on Strong CPI Data, Aussie Weak ahead of RBA
Swiss Franc climbed against major currencies following the release of stronger-than-expected inflation data, which is expected to bolster the case for SNB to raise interest rates by 50bps during their upcoming meeting this month. Euro also gained ground, supported by hawkish comments from ECB officials, while Dollar trailed behind.
Conversely,...
Yen Gains Traction on Mixed Market Sentiment
Mixed market sentiment led to a recovery in Yen during Asian session. Nikkei opened higher following a strong close in Wall Street on Friday. Meanwhile, stocks in Hong Kong and China were sluggish despite China's announcement of an ambitious growth target of around 5% this year. Euro and Swiss...
Dollar Struggled on Resilient Risk Sentiment Despite Expectations of Higher Interest Rates
The likelihood of higher and sustained interest rates in the US and Europe is increasing as time goes on. This expectation has led to some volatility in risk markets, but the late rally in stocks indicates that sentiment remains resilient. Despite a rally in treasury yields, Dollar ended the...