Weekly Report
Yen Hits Multi-Decade Lows, Euro Bounces Back, Dollar Remains Indecisive
Yen remained in the spotlight last week, dominating headlines even as some significant global inflation data also moved markets. The Japanese currency continued its downtrend, reaching multi-decade lows. Despite the prolonged decline, Japanese authorities refrained from intervening directly in the markets. However, the looming threat of intervention kept traders...
Yen’s Plunge Puts Japan’s Intervention Resolve Under Scrutiny
Yen ended as the runaway loser last week as its decline reaccelerated towards the end. With the crucial 160 level against Dollar now within reach, market participants are keenly watching to see if Japan will intervene soon to prop up the Yen, or just let it depreciate further.
Swiss Franc...
Sharp Declines in Euro and European Markets Triggered by French Political Drama
Global financial markets were abuzz with several high-profile events last week, including critical meetings of Fed and BoJ, alongside release of US inflation data. However, it was the escalating political turmoil in France that captured the most attention, significantly impacting Euro and overshadowing other major economic news. The common...
Swiss Franc Outperforms as Global Inflation Data Lack Lasting Impact on Forex
Inflation data were the key drivers in the forex markets last week, though they failed to produce any sustained movements across major currencies. Australian Dollar rallied following robust CPI figures, yet its gains were limited by the prevailing risk-off sentiment in the region.
Similarly, Euro received a modest boost after...
Sterling Climbs as Markets Dial Back BoE Rate Cut Expectations
Last week, global financial markets were heavily influenced by evolving expectations surrounding central bank monetary easing paths and unexpected political developments. British Pound emerged as the most significant gainer, buoyed by fading expectations of an immediate BoE rate cut in June. This shift was precipitated by latest inflation data...
Risk-On Sentiment Pushes US Stocks to New Highs, Safe-Haven Currencies Underperform
Risk-on sentiment dominated global financial markets last week, with investors buoyed by US inflation report that alleviated fears of another interest rate hike by Fed. The DOW defied gravity and surged to a new record high above the 40k mark, while S&P 500 and NASDAQ also set new records....
Global Markets Rally on Central Bank Easing Signals; Currencies Show Subdued Movements
Global markets were buoyed by pervasive risk-on sentiment last week, with both FTSE and DAX setting new records and major US indices posting substantial gains. Even Hong Kong HSI extended its rally from January's lows by 25%, underscoring a broad uptick in investor confidence. In Europe, enthusiasm was particularly...
Dollar Falls as Prospects of Two Fed Rate Cuts This Year Reemerge
Dollar concluded last week with significant losses, influenced by a set of factors that realigned market expectations and investor sentiment. A pivotal moment came with Fed Chair Jerome Powell's much less-hawkish-than-feared remarks at the FOMC press conference, coupled with disappointing US employment figures. These developments led markets back to...
Yen’s Decline, Robust US Investor Confidence, and Aussie’s Rise
Last week's market activity was shaped by several significant themes. Firstly, the Japanese Yen's rapid decline caught market participants off guard. The sell-off was exacerbated by what many considered tepid verbal interventions from Japanese officials. Current momentum suggests that the Yen's free fall is far from over. The key...
Market Turbulence Amid Middle East Tensions Highlights Fragile Investor Sentiment
It was a dramatic week in the global financial markets with rapid shifts in investor sentiment triggered by heightened geopolitical tensions in the Middle East. While calm was eventually restored somewhat, the volatility served as a clear indicator of the underlying vulnerability in investor confidence.
Amidst this geopolitical backdrop, the...
Bets on June Fed Rate Cut Abandoned, Dollar Asserts Dominance
The financial markets were jolted last week by data confirming the stall in disinflation progress in the US. This development prompted traders to quickly revise their expectations regarding Fed's monetary policy, withdrawing bets on a June rate reduction. This shift in sentiment led to strong rise in treasury yields...
Inflation Fears Resurface as Commodities Spike, Thwarting Central Bank Easing Hopes
Global financial markets are bracing for potential upheaval as geopolitical strains drive gold to new record while oil prices surge. This surge, alongside the rally in metals like Copper, ignites concerns over an inflation comeback. Such inflationary pressures, combined with a revival in manufacturing and service sectors, could deter...
Dollar Triumphs Following a Turbulent Week of Central Bank Shocks
The past week in the currency markets was a dramatic whirlwind, marked by pivotal moves from major central banks across the globe. From BoJ's unexpected hike to SNB's surprise cut, from Fed's hawkish leaning projections to BoE's dovish voting, they collectively orchestrated a much volatile than usual trading environment.
Amidst...
Dollar Rises on Fed Reassessment, But Reversal Pending Confirmation
Dollar ended the week as the strongest currency, boosted by the fresh round of inflation data that led markets to reassess expectations around Fed's rate cuts. This recalibration was also marked a pronounced rebound in treasury yields and a notably cautious sentiment pervading the stock market. Despite this rally,...
Dollar Dives, Yen Soars, A Week of Divergent Fortunes
Dollar and Yen had contrasting fortune last week, responding to divergent central bank expectations. Dollar found itself as the week's worst performer, a reflection of solidified expectations for Fed's first rate cut in June, reinforced by Fed Chair Jerome Powell's semiannual testimony. The cooling job US market is seen...
Yen Rises on BoJ Rate Speculation, But Gains Muted
Yen ended as the best performer last week amidst intensifying discussions around BoC rate hike, spurred by comments from the central bank's officials. The anticipation of policy tightening propelled Yen forward, although gains were tempered by uncertainties surrounding the timing of the first move, and the path of subsequent...
Continued Euphoria Pushes Global Markets to New Records
The past week marked a significant milestone in global financial markets, as major indices like DOW, S&P 500, DAX, CAC, and even Nikkei all reached new record highs, buoyed by the widespread euphoria surrounding artificial intelligence related sectors. This wave of optimism to eclipsed the recalibrated expectations that some...
Market Optimism Endures Through a Week of Economic Paradoxes
This past week showcased a rollercoaster of economic revelations and market responses. Despite a mix of apprehensions, especially surrounding inflation and monetary policies, the prevailing mood remained decidedly risk-on. That culminated in DOW and S&P 500 reaching unprecedented highs, even though both concluded the week on a relatively subdued...
Central Bankers Work to Recast Rate Expectations, Yet Market Optimism Remains Unwavering
Last week's financial markets were characterized by a mix of resilience, speculation, and divergent central bank signals.
In the US, the narrative remained steadfast with Fed officials emphasizing a patient approach towards monetary policy, firmly pushing back against the market's eager anticipations for imminent rate cuts. This cautious did little...
Investor Optimism Pushes Stocks to New Heights, While Dollar Rallies as March Fed Cut Speculation Subsides
This past week in the financial markets has been nothing short of a rollercoaster, with Dollar clinching the title of the strongest currency amidst considerable volatility. The narrative that dominated was the dissipating likelihood of a March rate cut by Fed. But at the same time, investor sentiment took...