Dollar Rebounded Strongly and Broadly as Focus Turns to Non-Farm Payrolls
Dollar rose broadly overnight, following solid job and services data, and remains firm in Asian session. Nevertheless, the real test lies in today's non-farm payroll report. As of now, Yen is the second strongest for the week, following the green back. Canadian Dollar is the third strongest, and will...
Decline in US Crude Inventory More than Doubled Consensus
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks added +1.92 mmb to 1277.85 mmb in the week ended May 28. Crude oil inventory sank -5.08 mmb (consensus: -2.44 mmb) to 479.27 mmb. Stockpile decreased in 3 out...
Dollar Mildly Higher after Strong ADP Jobs, But Upside Limited
Dollar trades slightly higher in early US session on much better than expected ADP private job data. Though, upside is so far limited, as traders remain cautious ahead of tomorrow's non-farm payrolls report. Sterling is following as the second strongest for today, then Yen. On the other hand, commodity...
China PMI Reports Suggest that Exports Growth Eased while Price Pressure Intensified
The latest PMIs reveal that China’s economic activities eased in May. The Caixin services PMI eased to 55.1 in May from 56.3 a month ago, while the manufacturing PMI increased marginally, by -0.1 point, to 52.The detailed report suggests that new business slowed which price pressures intensified. The situation...
Range Trading Continues as Markets Await Breakouts
Major pairs and crosses are still bounded inside last week's range as markets failed to take a decisive direction. While oil price continues to strengthen its rally, there is little reaction from Canadian Dollar so far. Stocks are also range bound while 10-year yield hover around 1.6 handle. Nevertheless,...
Dollar Recovers in Range Bound Markets, No Breakout Yet
The financial markets continue to be range bound today, as traders seem to be holding their bets before Friday's US job report. Dollar is recovering mildly but it's held below next term resistance levels. Sterling is currently the stronger one, while Swiss France is the weakest.
Technically, we're still staying...
Swiss Franc Higher in Subdued Trading, Dollar and Sterling Soften
Trading continued to be rather subdued in Asian session. Major pairs and crosses are staying inside yesterday's range, as well as last week's range. Sterling is currently the weakest one, after failing to follow through the rally attempt earlier this week. Dollar is the next weakest for now. On...
Canadian Dollar Jumps With Oil Price, Supported by GDP
Canadian Dollar jumps broadly today, following upside breakout in oil price, and partly supported by solid GDP growth data. Australian Dollar is following as the second strongest, while Dollar is also rebounding. On the other hand, Sterling reversed earlier rallies after failing to sustain above a key resistance against...
RBA Affirmed that Adjustments to YCC and QE would be Announced in July
As expected, the RBA left all monetary policy measures unchanged in June. Policymakers maintained a dovish tone, suggesting no rate hike at least until 2024. They also affirmed that some adjustments to the monetary policy would be made in July.
On economic developments, while reiterating the "strong" growth outlook in...
Aussie Steady after RBA, Dollar Softens Mildly
Trading remains relatively subdued in Asian session today. Aussie firmed up slightly, but lost momentum after RBA delivered no surprise to the markets. Sterling is also trying to break through a key near term resistance against Dollar, but there is no follow through buying yet. The greenback, on the...
PBOC Seeks to Curb CNY Appreciation by Withdrawing FX Liquidity
People’s Bank of China (PBOC) announced to increase of FX deposit reserve requirement ratio (RRR) to 7% from the current 5%, effective June 15. The move, together with recent comments from official, suggests that the central bank is getting uncomfortable with recent appreciation in renminbi (RMB, CNY). We believe...
Sterling and Dollar Softer in Subdued Trading, Aussie Firm ahead of RBA
Trading continue to be relatively subdued as US and UK are both on holiday. Sterling is mildly softer, followed by Dollar, and Swiss Franc. On the other hand, Australian Dollar is strengthening mildly, ahead of RBA rate decision in the upcoming Asian session. It's highly unlikely for the central...
Dollar Mildly Lower in Holiday Mood, Busy Week Ahead
Dollar weakens broadly in relatively quiet Asian session today, while Australian Dollar is strengthening. Asia markets are trading mildly lower, but losses are limited. Month-end flow, plus holiday in the UK and the US, could keep activity subdued today. But the week ahead is extremely busy, with lots of...
RBA Preview: RBA to Assess Economic Data and Prepare for Policy Tweak in July
The June RBA meeting will have little surprise, as the central bank has already planned to adjust yield curve control (YCC) and QE measures in July. This week, policymakers will discuss recent economic data and the economic impacts of the lockdown in Melbourne. All monetary policy measures will stay...
Yen Committed to a Direction, While Others Not… Yet
Overall, the markets in the last full trading week of May was rather mixed. New Zealand Dollar surged initially after hawkish RBNZ. But it failed to extend much gain from there, even though it still ended as the strongest. It looked like Dollar was ready to turn around after...
CFTC Commitments of Traders – Net Length for WTI Crude Trimmed as Price Approached Two Months’ High
According to the CFTC Commitments of Traders report for the week ended May 25, NET LENGTH for crude oil futures dropped-457 contracts to 475 490 for the week. Speculative long position rose +13 038 contracts, while shorts soared +13 495 contracts. For refined oil products, NET LENGTH for heating...
CFTC Commitments of Traders – Net Length Increased for GBP as It Consolidated at 3-Year High against USD
As suggested in the CFTC Commitments of Traders report in the week ended May 25, NET LENGTH of USD index futures added +96 contracts to 2 780. Speculative long positions added +350 contracts while shorts increased +254 contracts. Concerning European currencies, NET LENGTH in EUR futures gained +4 142...
Dollar Flies High after Strong Inflation Reading
Dollar surges in early US session as boosted by stronger than expected inflation readings. Indeed, the core PCE inflation hit the highest level since 1991. With the current buying momentum, the greenback is likely to end the week on a high note, with prospect of closing as the strongest....
Positive Correlation between US stocks and bonds Reveal Rising Concerns over Inflation
Correlation between US stocks and bonds has turned positive and continued to rise. The phenomenon, not seen since September 2020, probably reveals increasing risk aversion, driven by rising inflation expectations. The correlation could return to negative, thus facilitating asset diversification, if inflation proves transitory and central banks could maintain...
Yen Selling Takes Off, More Downside for Today
Yen's selling took off overnight, following rebound in treasury yields. Weakness is somewhat solidified in Asian session, together with the strong rebound in Nikkei. With some technical levels broken, Yen's decline could extend before weekly close, and it'd likely end as the worst performing one. As for the week,...