Market Overview
Dollar Slides as Markets Cheer Tariff Delay, Kiwi Surges on Manufacturing Rebound
Dollar’s selloff is accelerating as the week draws to a close, with investors continuing to react to the evolving trade policy stance from the White House. Wall Street posted broad gains overnight, as markets took relief in the fact that US President Donald Trump’s much-anticipated reciprocal tariff plan did...
Dollar Muted Despite Strong PPI, Awaits Reciprocal Tariffs
The currency markets are treading cautiously, with traders showing little reaction to stronger-than-expected US PPI data and a better-than-anticipated jobless claims report. Despite these inflationary signals, Dollar has struggled to gain further traction, as market participants hold their positions ahead of a highly anticipated announcement on US "reciprocal tariffs"...
Dollar Momentum Fades as UK GDP Takes Center Stage
The forex markets was subdued in Asian session today. Dollar strength faded quickly after initial boost from stronger-than-expected US inflation data. While the greenback retains most of its gains against Yen, it has started to weaken against other major currencies. The reluctance of Dollar to sustain its rally—despite reduced...
Dollar Surges as Hot Inflation Data Solidifies Prolonged Fed Pause, Yields Surge
Dollar rallied sharply in early US trading after inflation data came in hotter than expected, reinforcing expectations that Fed will maintain its restrictive policy stance for longer than previously anticipated. 10-year Treasury yield surged past 4.6%, extending its strong rebound from earlier in the week. US equity futures plunged,...
Yen Weakens as US Yields Bounce, Markets Eye Trump’s Reciprocal Tariffs and US CPI
Yen struggled in the Asian session and stayed weak, with renewed selling pressure driven by a combination of rising US Treasury yields and ongoing concerns over trade policy developments. Market participants are still digesting the implications of US President Donald Trump's decision to reintroduce tariffs on steel and aluminum...
Cautious Trading Prevails as Markets Await Retaliations to US Tariffs
Trading is relatively subdued today across global markets as investors assess the fallout from the US steel and aluminum tariffs announced by President Donald Trump. Major European equity indexes are treading water, while US futures are slightly in the red. Treasury yields are recovering, though it remains too early...
Gold Nears 3000 as Muted Reaction to Metal Tariffs Fades, Fed Powell in Focus
Dollar is trading is a mildly firmer tone while Gold inches closer to the key 3000 psychological level after US President Donald Trump officially raised tariffs on aluminum and steel imports. However, the broader market reaction has been relatively subdued. Major US equity indexes managed to post modest gains...
Tariff Impact Diminishes, Aussie Confidence Due Next
Trading in the forex markets has been relatively subdued today, with major currency pairs and crosses remaining within Friday’s range. There was some initial reactions to the latest news of US tariffs on metals, but the impact has faded quickly. Dollar is currently mildly stronger in tight range and...
Tariff Wave Expands with Metals and Reciprocal Duties, Dollar Strengthens Slightly
Trade tensions remain at the forefront of market concerns as the US prepares to roll out another wave of tariffs. Over the weekend, President Donald Trump confirmed plans to impose a 25% tariff on all steel and aluminum imports, adding to the existing duties on these metals. The official...
Dollar’s Wild Week Ends in Uncertainty, Awaits Next Tariff Cue
Dollar faced significant volatility last week as shifting trade policy signals from the White House left investors scrambling for clarity. Initially, tariffs on Canadian and Mexican imports were imposed, only to be quickly suspended for 30 days following new agreements on border security and fentanyl control. Now, the focus...
Dollar Gains Modestly on NFP, But Lacks Momentum
Dollar edged higher in early US session following the non-farm payrolls (NFP) report, but the overall momentum remains lackluster. Stock futures are flat, while 10-year Treasury yield is staging a slight recovery, suggesting a measured market response as traders hold back from aggressive positioning ahead of next week's key...
Yen Rises Further as IMF Backs Gradual BoJ Tightening; Dollar Awaits NFP Impact
The forex market was relatively subdued during Asian session, with one clear exception: Japanese Yen continues to outperform. Fresh data from Japan showed a 2.7% yoy increase in household spending, not only marking the first rise in five months, but also the fastest pace since August 2022. Paired with...
Sterling Tumbles on BoE’s Dovish Rate Cut
The British Pound weakened significantly after BoE delivered a 25bps rate cut. The policy decision was more dovish than anticipated, primarily due to the unexpected shift in the MPC voting split. Catherine Mann, previously one of the most hawkish members of the committee, reversed course and joined Swati Dhingra...
Sterling Awaits BoE Guidance Amid Stagflation Concerns; Yen Leads FX Markets
Yen continues to dominate the forex market this week, additionally supported by further decline in US and European benchmark yields overnight. The persistent strength in Yen is being reinforced by hawkish rhetoric from a known hawkish BoJ board member, who reiterated calls for a gradual rate hike toward the...
Dollar Struggles Continue Despite Strong ADP, Caution Prevails
Dollar remains on the backfoot in early US session, despite the strong ADP private employment report. The data highlights continued resilience in the labor market, with services-driven job growth and sustained wage pressures. While this should theoretically reinforce the case for Fed to maintain its pause in easing for...
Yen Rises on Strong Wage Data, Gold Continues March to 3000
Japanese Yen gained significant ground in the Asian session, supported by stronger-than-expected nominal wage growth, which bolstered the likelihood of further BoJ rate hikes. Additionally, continued rise in real wages for the second consecutive month, despite being largely driven by seasonal bonuses, adds to the argument that wage pressures...
Markets Stay Calm, Await Clarity from Trump-Xi Call
Global markets remain stable as US session begins, with sentiment lifted by the delay of tariffs on Canada and Mexico. Nonetheless, investors remain cautious about ongoing tensions between the US and China, as Washington’s additional 10% tariffs on Chinese imports have taken effect. So far, there has been no...
Markets Stabilize, But Trade Risks Persist as US Imposes China Tariffs, Beijing Strikes Back
Global markets found some stability after the US agreed to a 30-day delay on tariffs against Mexico and Canada following agreements on fentanyl trafficking and border security measures. However, trade tensions remain elevated as Washington proceeded with the additional 10% tariff on all Chinese imports. In response, China retaliated...
US-Canada Talks Offer Hope, But Risk Aversion Keeps Yen in Demand
After a burst of volatility earlier in the session, currency markets are taking a breather as traders reassess the evolving US tariff situation. Comments from White House National Economic Council Director Kevin Hassett helped cool tensions when he clarified that, "This is not a trade war, this is a...
Trade War 2.0 Shakes Global Markets as Dollar Rallies
Global markets kicked off February under heavy strain as US President Donald Trump’s long-anticipated tariffs on Canada, Mexico, and China came into full effect. Investor sentiment turned sharply negative, with Japan's Nikkei tumbling over 1,000 points in response. Dollar opened the week with a strong gap higher and maintained...