Weekly Report
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...
Dollar Rally Jeopardized by Job Data, No Bullish Reversal Yet
After some jitters on Iran tensions, Dollar ended up as the strongest one last week. Strong stocks and steady yields provided some support to the greenback. Fed officials also reaffirmed the base stance to stand pat this year. US and China are on track to sign the phase one...
Yen, Gold and Oil Jumps as Geopolitical Risks Cloud Markets
The financial markets took a roller-coaster ride as 2020 started with a bang. US stocks jumped to new record higher to celebrate new year. But sentiments took a great turn after abrupt escalation in Middle-East tensions. Safe-haven flows into Gold, Yen and US treasuries came in unison. Oil prices...
Dissatisfied With Tiny US-China Tariff Rollbacks, Risk Appetite Might Struggle to Push Forward
The markets were rocked by three key events last week, UK Election, US-China trade deal and FOMC rate decision. Sterling ended as the strongest one last week as boosted by the Conservative's landslide victory in UK election, removing a large of of Brexit uncertainty. Canadian Dollar followed crude oil...
Trade War, Election, Fed and ECB in a Week of Guaranteed Volatility
It was a rough ride in the financial markets last week. Stocks were initially pressured in concerns over US-China trade negotiations. US President Donald Trump threw the idea that waiting until after 2020 election before closing the phase one deal. Sentiments were additionally weighed down by a string of...
Sterling Jumped on Election and Brexit Hopes, US Stocks Hit Records ahead of Important December
Sterling ended as the strongest one last week as it looks like Conservative is set to have a majority win in the upcoming elections. If materialized, UK is finally heading for an orderly Brexit next January, clearing all uncertainties. On the other hand, Japanese Yen was the weakest one,...