Market Overview
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...
Dollar Unfazed by Core Inflation Uptick, Loonie Muted on GDP Contraction
Forex markets remain largely subdued today, with Canadian Dollar being the exception as volatility rises ahead of the implementation of US tariffs tomorrow. Canada is reportedly well prepared to respond with retaliatory measures on US imports worth up to CAD 150B. This comes at a time when Canada’s economy...
Canadian Dollar Dives as Trump Confirms Tariffs, Gold Soars to Record High
Canadian Dollar spiked lower after US President Donald Trump confirmed his plan to impose 25% tariffs on imports from Canada and Mexico, set to take effect this Saturday on February 1. Trump justified the decision by citing concerns over migration, drug trafficking, and economic imbalances. However, uncertainty remains regarding...
Euro Gains Modestly After ECB Cut, Dollar Soft on GDP Miss
Euro is trading slightly higher following the ECB's widely expected 25bps rate cut, though the move lacks strong momentum. In her post-meeting press conference, President Christine Lagarde reinforced the bank’s "gradual easing path".
She stated that a larger 50bps cut was not even considered today, making it clear that an...
ECB Rate Cut Takes Center Stage, as FOMC Hold Triggers Minimal Reaction
FOMC rate decision and press conference yesterday proved to be a non-event. Dollar remained firm following the decision to keep interest rates unchanged at 4.25–4.50%. Fed Chair Jerome Powell reinforced a patient approach to policy adjustments, stating, "we do not need to be in a hurry to adjust our...
CAD Steady After BoC Cut, DOW Nears Record Ahead of FOMC Hold
Canadian Dollar is steady after BoC delivered its sixth consecutive rate cut, lowering its policy rate by 25bps to 3.00% as expected. The pace of easing has slowed from December’s 50bps reduction, reflecting a more measured approach as interest rate sits inside neutral zone. BoC explicitly warned of risks...
Cautious Trading Continues as RBA Cut Expectation Rise, BoC and Fed in Spotlights
Forex markets are trading with a mild risk-off tone in a relatively quiet day so far, with many Asian markets closed for Lunar New Year holiday. Safe-haven currencies, including Yen, Swiss Franc, and Dollar, are holding firm, while commodity-linked currencies are on the weaker side. However, there is little...
Dollar Shrugs Poor Durable Orders; AUD Awaits Inflation Data
The global financial markets are finding their footing following the turmoil triggered by yesterday’s tech-driven selloff. European stocks have moved into positive territory, while US futures signal a flat start to trading. Nvidia, which lost a staggering -17% on Monday—erasing nearly USD 600B in market capitalization—is poised for a...
Safe Havens Reverse Gains as Tech Decline Subsides, Dollar Gains on Trade Plans
The sharp selloff in equities sparked by AI competition concerns appears to have run its course for now. While NASDAQ dropped more than -3% yesterday, the selling pressure did not intensify as the session progressed. DOW, on the other hand, demonstrated resilience, closing up 0.65%. This relatively stable market...
Global Easing Expectations to Anchor Markets Despite Tech Sector Turmoil
Markets opened the week with a dramatic shift in risk sentiment as last week’s record-breaking highs in US equities gave way to sharp declines, driven by tech sector rout. Concerns over US dominance in artificial intelligence surfaced after Chinese startup DeepSeek unveiled a competing AI assistant, leading to fears...
NASDAQ Slide Grabs Focus, Dimming Fed Spotlight to Start the Week
As markets gear up for a week dominated by central bank meetings including Fed and ECB, sharp selloff in US tech stocks has stolen the spotlight. NASDAQ futures dropped more than -2%, triggering mild safe-haven flows into Yen, U.S. Dollar, and Swiss franc. Meanwhile, commodity currencies like Aussie and...
Dollar Slumps as Risk-On Mood Prevails Under Trump’s First Week
Dollar ended the week as the worst-performing major currency, largely weighed down by strong risk-on sentiment that took hold after President Donald Trump’s first week in office. Investors had anticipated more aggressive trade measures from the new administration, but Trump instead struck a relatively softer tone on tariffs, leading...
Euro Strengthens on Optimistic PMI Data; Dollar and Yen Under Pressure
Euro posted notable gains today as lifted by encouraging Eurozone PMI data that suggests the region is beginning the year on firmer footing. Private sector activity showed cautious growth, with reduced drag from manufacturing and moderate expansion in services. Most surprisingly, Germany, which struggled throughout 2024, returned to expansion....
Greenback Falls With Risk-On Sentiment and Trump’s Softer Tone on China
Dollar’s decline accelerated as the week progressed towards the last day, weighed down by strong risk-on sentiment and investor optimism. S&P 500 closed at a new record high on Thursday, with NASDAQ and DOW poised to follow soon.
Contributing to this sentiment were remarks from US President Donald Trump at...
Yen Stabilizes in Weak Position as BoJ Rate Hike Awaited
While Yen remains the worst performer of the week so far, it has stabilized as the markets await the highly anticipated BoJ rate hike in the upcoming Asian session. Expectations for this rate move were well set by comments from BoJ Governor Kazuo Ueda last week. Risks from US...
Dollar Softness Continues as Forex Markets Tread Calm Waters
The forex markets remain unusually quiet today, with Dollar staying soft despite multiple attempts to rebound. The greenback has only managed meaningful gains against the weaker Yen and the struggling Canadian Dollar, while failing to build momentum against other major currencies. With little in the way of significant economic...
Dollar Recovery Capped by Stocks Rally, S&P 500 Ready for New Record
Despite being pressured in the past few days, Dollar remains relatively resilient, refusing to drop despite renewed selling pressure earlier today. US President Donald Trump’s tariff rhetoric is having a diminishing effect on markets, as traders shift their attention back to fundamental and intermarket dynamics. The first significant market...
Kiwi Eases as NZ CPI Backs RBNZ 50bps Cut, Dollar Unmoved by Trump’s Continuous Tariff Talks
New Zealand Dollar softened mildly today as Q4 inflation data reinforced the case for continued monetary easing by RBNZ. The central bank has ample room to swiftly bring interest rate from the current 4.25% to neutral, with inflation staying at around mid-point of 1-3% target range for the second...
Loonie Weakness Persists in Calmer Markets, AUD/CAD Challenges Key Resistance
Forex markets have settled into quieter trading as the immediate impact of US President Donald Trump’s inauguration and initial executive orders fades. While Trump’s proposed tariffs remain a significant concern, their delayed implementation suggests a more calculated and strategic approach, tied to future negotiations. This tempered stance has brought...