Weekly Report
Sentiments Took a U-Turn on Fear of Coronavirus Second Wave
The second wave of coronavirus pandemic had finally become a main theme in the markets last week. Or, investors could have just waited for Fed to confirm its done with more easing for moment, and started profit taking. Either way, massive selloff was seen in the stock markets towards...
Investors in Euphoria, Betting on a V-Shaped Recovery
The global financial markets were basically in euphoria last week. Lockdown restrictions continued to be eased. ECB provided more stimulus by expanding the crisis purchase program. Surprised growth in US and Canadian employment in May argue that the worst of coronavirus pandemic is already behind us. More importantly, investors...
Old and New Risks Ignored So Far, Dollar to Decide Reversal or Not Soon
Some old and new global risks, other than coronavirus, have been (re-)emerging in recent weeks. US-China relation is heading another step towards cold war with US President Donald Trump's new set of measures against China announced on Friday. Unrest that started in Minneapolis quickly spread from Los Angeles to Miami...
China’s Diplomatic Tensions Overshadow Global Coronavirus Pandemic Exit Optimism
While Dollar and Yen staged notable rebound towards the end of week, they still ended as the worst performing ones. On the other hand, commodity currencies were the best performers despite paring some of the gains. Markets were lifted by optimism that the world is moving closer to lockdown...
Negative Interest Rate Expectations Drove Markets, Risk Reversal TBC Soon
The topic of negative central bank interest rates was a key driver in the forex markets last week. Dollar ended as the strongest one against a chorus of Fed officials expressed their objection. New Zealand Dollar, on the other hand, ended as the weakest as RBNZ was clearly preparing...
Risk Rally Inconclusive, Dollar Index and Gold Range Bound
Global stock markets somewhat strengthened last week as most countries continued with their coronavirus lockdown exit plan. Yet, with the exception of NASDAQ, major indices were capped below prior week's high. Tensions between US and China remained a major focus. News flows on the topic were confusing. US Trade...
From Coronavirus Lockdown Exit to New US-China Tariff war
Economic data releases have probably never been that meaningless in history. Traders were not too concerned that the Q1, March or even April data were worse than terrible. Instead, hope of lockdown exit, at least partially, have lifted risk markets for the initial part of the week. Risks of...
Aussie and Yen Ended as Strongest as Conoslidative Markets Remained Indecisive
The unimaginable negative oil price was the biggest head-liner last week. But the impact on other markets were relatively short lived. Canadian Dollar was much bothered for most of the week, but eventually it's just the second worst performing, following Sterling. On the other hand, Australian Dollar ended as...
Yen Ended Higher, Dollar Mixed, Despite Risk Rally
Global stock markets were some what supported by talks of staged exit of coronavirus lockdown. There was optimism that finally a cure for the virus too. Nevertheless, the extended rebound in stocks were not much reflected in the currency markets. Yen ended the week as the strongest one, followed...
Dollar Jumped as Markets Started Q2 With Risk Aversion, But Oil Rebounded
The financial markets didn't start the second quarter with a bang even though coronavirus pandemic carried on. Globally, confirmed cases surged through 1.1m level but that's now more of an indication of the speed of tests. Death toll, on the other hand, remains worrying as it broke 60k handle...
Dollar in Strong Rally as Coronavirus Pandemic Worsened, Key Resistance Levels Broken
The anticipated market stabilization didn't happen last week. Instead, despite massive monetary and fiscal stimulus, stocks around the world still ended sharply lower. Nevertheless, as stocks are showing sign of loss of downside momentum. Treasury yield has somewhat stabilized in range. We'd see that the rock bottom in investor...
Markets Could Stabilize after Bearish Mood Exhausted in Wild Week
Global markets experienced another wild week, with free falls in risk assets and oil prices. Coronavirus pandemic occupied all headlines, ranging from business news, politics, sports and show business. Massive disruption in economic activity is happening.
Major central banks and governments came to rescue and launched coordinated measures to support...
Dollar Tumbles as Markets Expect More From Fed Even after Panic Rate Cut
Global Wuhan coronavirus pandemic overshadowed all developments last week. Total confirmed cases broke 100k level (103,813 at the time of writing), with 3,522 deaths. Situation in China eased with daily new cases continued to drop. But there is no sign of slowing in South Korea (7,041 cases, 48 deaths)...
Stocks & Gold Crashed as Coronavirus Pandemic is Near, Traders See Fed Cut -50bps in march
The world got one big step closer to Wuhan coronavirus pandemic with explosion of number of cases outside China in the past last week. South Korea (3150 cases, 16 deaths), Italy (888 cases, 21 deaths) and Iran (388 cases, 34 deaths) are now the new epicenters, while Japan (235...
Safe Haven Flows into Gold and Treasuries on China Coronavirus Contagion
Outbreak of China's Wuhan coronavirus continued to be a big market mover last week. According to China's own numbers, new cases in the country seemed to have slowed even though new daily deaths maintained at around 100 level. What's worrying is that contagion to other countries, in particular Asia,...
Euro Collapsed on Coronavirus Spillover Fears, Next Two Weeks Crucial
While China's Wuhan coronavirus outbreak remained a major focus last week and triggered much volatility. But overall, stocks investors seemed not too bothered, with US indices continuing record runs. Other major markets are mixed only FTSE and Nikkei ended the week lower only. Gold closed higher but is well...
Dollar Jumped Broadly on Solid Batch of Economic Data, Coronavirus Fears Receded
Dollar ended last week as the strongest one as markets put China's coronavius behind. Instead, strong risk sentiments lifted major US indices to new record highs. Friday's pull back was likely due to pre-weekend profit taking only. Latest batch of economic data, including ISMs and NFP, suggested that US...
Bets on Fed Cut Surged on China’s Coronavirus Outbreak; Stocks, Yields & Dollar Tumbled
Fear of China's coronavirus outbreak was the major theme in the global markets last week. At the time of writing, number of confirmed cases were close to 12000. While the majority of the infected in China, the virus has spread to at least 23 countries already. And, most important,...
Markets Sold Off on Coronavirus Worries, Dollar Momentum to be Capped by Yen Strength
China's new coronavirus overshadowed central bank activities last week and prompted global risk aversion. At the timing of writing, death toll jumped to 41 while more than 1300 people have been infected globally. The virus has already spread from Wuhan to other major cities in China, and globally to...
Dollar Could Be Staging Bullish Reversal as Trade Tensions Eased
The completion of US-China trade deal phase one was well received by investors. There was an additional bonus of scrapping the label of China as currency manipulator by the US Treasury. The is no time frame for the phase two negotiations yet. But the US is already working with...