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,...
Sterling Surges on BoE Rate Hike Talks, Canadian Dollar Rebound
Sterling jumps broadly today as a BoE officials indicated that rate hike could come next year. UK Prime Minister Boris Johnson also said there is nothing in data that suggests a delay to reopening on June 21, even though some more time is needed to assess the situation. Nevertheless,...
Dollar Recovered in Mixed Markets, Loonie Found Some Footing
Overall markets are mixed for now, except the clear strength in New Zealand Dollar this week. While Aussie is also trading higher against others, it's lagging Kiwi by a mile. Dollar recovered overnight but once again lost momentum quickly. Canadian Dollar has also found some footing after yesterday's pull...
Rise in Petroleum Demand Signals Pickup in US Economic Activities
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks slumped -7.67 mmb to 1275.92 mmb in the week ended May 21. Crude oil inventory fell -1.66 mmb (consensus: -1.05 mmb) to 484.35 mmb. Stockpile decreased in 4 out...
Strong Euro Supported by Firm Data, Rising Inflation Expectations and Tapering Hopes
Following a weak first quarter, the strength in EURUSD has gathered momentum. The pair is the second strongest among majors quarter-to-date. A more upbeat economic outlook, heightened inflation forecasts and expectations of ECB’s tapering are key driving forces of the recent rally.
Indicators Pointing to Stronger 2Q21
Leading indicators have pointed...
Dollar Strikes Back, Kiwi Maintains Gains
While Kiwi and Aussie remain the strongest ones for today, Dollar is striking back as markets enter into US session. On the other hand, Canadian Dollar is now the selling focus. Euro and Swiss Franc also turn weaker. Overall markets are mixed though, with European indexes trading water while...
Kiwi Rallies as RBNZ Suggests that Rate Hike can Come in as Soon as Next Year
The RBNZ delivered a less dovish message in May than a month ago. While leaving all monetary policy measures unchanged, it upgraded the inflation forecast and revised lower the unemployment rate. The central bank also pushed forward the first rate hike to 3Q22. Kiwi rallied to highest since February...
NZD Surges on Hawkish RBNZ, Dollar and Yen Pressured
New Zealand Dollar surges sharply today, on surprisingly hawkish RBNZ which started to signal a rate hike. Strength in the Kiwi is somewhat lifting Australian Dollar, and to a lesser extent Canadian. On the other hand, Dollar and Yen are both turning weaker, followed by Euro and then Swiss...
Euro Surges Broadly on German Business Sentiment, DAX Hits Record
Euro surges broadly today, while German DAX and Stoxx 600 hit new record highs. Strong German business climate reading gave sentiments a strong lift. For now the common currency is only out-performed by New Zealand Dollar, and followed by Swiss Franc. On the other hand, positive market sentiment makes...
Aussie Mixed Despite Strong Export Data, Dollar Heading South
The forex markets are staying in mixed consolidative mode in Asian session. Australian Dollar trades mildly higher following strong, record making, export data. But that's offset by Melbourne's return to pandemic restriction, on masks and gatherings. Dollar turns weaker as Asian stocks rebound, together with Yen and Canadian. European...
Euro Rises in Quiet Trading, Sterling Softens
Markets are generally staying in consolidative mode today, with subdued movements. Sterling is trading mildly lower, followed by Aussie, and Dollar. New Zealand Dollar firms up mildly after initial dip. Euro and Swiss Franc are also stronger, helped by buying against the Pound. Gold is struggling in range below...
RBNZ Preview: Upgrading Economic Assessments to Reflect Stronger-than-Expected Recovery
Economic data released since the last meeting have continued to improve. We expect the RBNZ to upgrade economic assessments at the upcoming meeting, acknowledging recent positive developments. Yet, policymakers would continue to attribute the spike in inflation to temporary factors. All monetary policy measures will remain intact.
The job market...
Yen Mildly Firmer in Subdued Trading, Kiwi Soft Despite Strong Retail Sales
The forex markets are rather quiet in Asian session today. With some European markets and Canada on holiday, trading will likely remain subdued for the day ahead. Yen is trading mildly firmer, as near term consolidations are extending. Meanwhile, Australian Dollar and Canadian Dollar are the slightly softer ones.
Technically,...
Swiss Franc Ended as Strongest, Aussie as Weakest, But Bitcoin Stole the Show
While Fed minutes started to prepare the markets for discussion on tapering in the coming months, Dollar wasn't give much support. It has indeed ended as one of the worst performers for the week, just next too New Zealand and Australian Dollar. On the other hand, Swiss Franc and...
CFTC Commitments of Traders – USD Strength Lacks Momentum
As suggested in the CFTC Commitments of Traders report in the week ended May 18, NET LENGTH of USD index futures added +261 contracts to 2 684. Speculative long positions added +27 contracts while shorts dropped -234 contracts. Bets on both sides were limited as traders awaited FOMC minutes....
CFTC Commitments of Traders – Bets on Crude Oil Trimmed as Iran Sanctions Prone to be Lifted
According to the CFTC Commitments of Traders report for the week ended May 18, NET LENGTH for crude oil futures sank -20 614 contracts to 475 947 for the week. Speculative long position fell -37 588 contracts, while shorts were down -16 974 contracts. Bets were trimmed on both...
CAD Rises after Retail Sales, Euro Tumbles
Canadian Dollar rises in early US session after stronger than expected retail sales data. Sterling is also firm after strong PMIs. But Euro had little reaction to the solid PMI data. Instead, the common currency seems to be reacting to ECB President Christine Lagarde's comment that accommodative policies remain...
Dollar Back Around Lows as Eurozone PMIs Eyed
The forex markets still generally range bound for the moment. Dollar weakened mildly overnight, but stays above near term lows against other major currencies. Similarly, Yen is also bounded in very tight range. US stocks' rebound overnight was as positive development for sentiments. Yet, there is no follow through...
Dollar Pare Gains in Quiet Ranging Markets, Euro Stays Strongest
The forex markets are very quiet today, with most major pairs and crosses staying inside yesterday's range. Dollar is paring some post FOMC minutes gains, while Sterling is also soft. On the other hand, Australian and New Zealand Dollar are both recovering mildly. As for the week, Euro is...
Dollar Recovers after FOMC Minutes, But No Technical Levels Broken Yet
Dollar recovered overnight, with help from mild risk aversion and some slight hawkish twists in FOMC minutes. Yet, it couldn't manage to break through any near term technical level yet. Euro remains the strongest one for the week at this point, followed by Yen. Commodity currencies are the generally...