Dollar Recovers after Brief Retreat, More Treasury Auctions Ahead
Dollar's pull back overnight was relatively short-lived as it regains some footing in Asian session today. Sentiments stabilized with US stocks closed higher yesterday, with NASDAQ staged a strong rebound. Treasury yields also retreated mildly. The auction of USD 58B in US 3-year notes was seen as well received,...
ECB Preview – Awaiting Actions in Response to Higher Yield and Revisions on Economic Forecasts
Macroeconomic developments have changed significantly since the January ECB meeting. One of the most prominent developments is the rise in inflation expectations and bond yields. As the ECB has pledged to maintain a accommodative monetary policy, it would be of great interest to the market as to how it...
Dollar Pares Gains as Yields Retreat, Stocks Rebound
Dollar retreat broadly today as 10-year yield pares gain after failing to sustain above 1.6 handle again. NASDAQ is also set for a rebound while DOW might try to extend the record run. At the time of writing, Yen, Euro and Sterling are following as the next weakest. Australian...
Sterling Strengthening While Yen Selloff Continues
Dollar retreats mildly in Asian session today as overall market sentiments improved some what. Major Asian indices, except China, recovered notably, following DOW's rally. But weakness in US tech is keeping upside capped. Selloff in Yen and Swiss Franc, and to a lesser extend Kiwi, is still the main...
Dollar Extends Rally, Euro Shrugs Solid Investor Confidence
Dollar's rally continues today but buying is mainly centered against Euro, Swiss Franc and Kiwi. Euro is getting no support from better than expected investor confidence data. Thanks to some resilience in crosses, Sterling is following as the second strongest for now. Commodity currencies are trading mildly softer but...
Asian Markets Soften on Surging Oil Price, Dollar Firm
The Asian markets opened the week relatively mixed. Stocks gained initially on US Senate passage of the USD 1.9T stimulus bill. But sentiments are weighed down by concerns of inflation as oil prices jumped. Dollar is firm against Yen, Euro and Swiss Franc and look set to continue with...
BOC Preview: Caution over Pandemic Uncertainty While Acknowledging Better-than-Projected Growth
The BOC will leave its policy rate and the size of the QE program unchanged at this week's meeting. While there will be no press conference and updated economic projections will not be released until April, policymakers will address the upbeat economic data released in the last meeting. Yet,...
10-Yr Yield Couldn’t Break Loose from 1.5 Magnet, Dollar and Canadian Soared
Strong treasury yield continued to be a major theme last week. But for now, it seemed 10-year yield could still break loose from the "magnetic field" of S&P dividend yield at around 1.5%. Indeed, US stocks, including NASDAQ staged a strong rebound on Friday, as 10-year yield settled back...
Dollar Jumps after Strong NFP, 10-Yr Yields Breaks 1.6
Dollar rises further in early US session after much stronger than expected non-farm payroll report. 10-year yield also surges and it's now back above 1.6 handle. The greenback in currently the second strongest for the week, only overwhelmed by the oil supported Canadian Dollar. While Swiss Franc and Yen...
Yields Surged, Stocks Tumbled after Fed Powell, Dollar in Half-Hearted Rally
Fed Chair Jerome Powell's lack of concrete hint on action against rising nominal rates sent treasury yield higher, and stocks lower overnight. Dollar rode on risk aversion and jumped sharply higher. Nevertheless, the greenback's rally was concentrated against Euro, Swiss Franc and Yen only. Sterling, Canadian, and Australian are...
Swiss Franc and Yen Resumed Selloff, Markets Mixed Elsewhere
Selloff in Swiss Franc and Yen is the main focus today. But the forex markets are mixed elsewhere. Commodity currencies are mildly firmer as led by Aussie, but major pairs are just bounded in very tight range at the time of writing. Euro, Sterling and Dollar are mixed for...
Currency Trading Subdued, But Risk Aversion Building Up
Huge volatility continues in stock markets as Asian indices dive following the selloff in US overnight. But movements in exchange rates are relatively subdued, and mixed. Swiss Franc, Yen and Euro are currently the weaker ones for the week, followed by Dollar. Australian Dollar is leading other commodity currencies...
US Crude Inventory Recorded Biggest Weekly Increase in History
Sluggish demand and rising output to profit from strong oil prices lifted US inventory significantly last week. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks dropped -2.8 mmb to 1282 mmb in the week ended February 26....
Dollar Recovers Despite Sluggish ADP Job Growth, Yields Up Again
Dollar recovers in early US session as sluggish ADP job growth drags down stock futures. Additionally, treasury yields are having a mild rebound. At this point, Sterling is following as the strongest followed the day, then Canadian. New Zealand Dollar is leading Australian Lower, followed by Swiss Franc and...
Aussie Supported by GDP, Dollar Turns Soft in Consolidative Markets
The markets are relatively mixed so far. Dollar's rally attempt was brought to a halt overnight while Euro and Swiss Franc recovered. Commodity currencies also recovered, as led by Aussie, with support from better than expected GDP data. Yet, major pairs and crosses are kept in tight range. In...
China PMIs Affirm Broad-based Slowdown in Activities
China’s PMI readings eased further in February, signalling that economic growth is losing steam. However, vaccination program worldwide is sending hopes that global economic recovery will accelerate later in the year. This would benefit China which is the world's largest exporter.
Caixin’s services PMI slipped -0.5 point to 51.5 in...
Euro Drops on ECB Comments, Swiss Franc Weaker
Euro is under some pressure today after a heavy ECB official indicated the readiness to response to surging yields. But Swiss Franc is not too far behind. The forex markets are mixed elsewhere. Dollar is currently the stronger one, together with Aussie and Sterling. Meanwhile, Kiwi is the weaker...
RBA Review – QE Might Increase Further to Curb Rising Yields and Exchange Rate
As widely anticipated, the RBA left all monetary policy measures unchanged. As a summary, the cash rate target, the 3-year Australian Government Bond ‘Yield Curve Control’ (YCC) target and the Term Funding Facility (TFF) interest rate all stay at 0.1%. The size of the asset purchase program (QE) is...
Aussie Steady after RBA, Yield Retreats, Stocks Mixed
Global treasury yields softened mildly this week, which helped the rebound in US and European stocks yesterday. But the positive sentiment is not much reflected in Asian session today so far. Selloff in Swiss Franc and Yen, and to a lesser extent Euro, appears to be slowing. But these...
Swiss Franc Sold Off Again as Stocks Rebound, Yields Turned Mixed
Swiss Franc is in deep selloff again today as risk sentiment further stabilized in the markets. European indices rebound broadly while US futures point to higher open. Global bond markets also turned mixed for now. Euro and Yen are following as next weakest. Meanwhile, Canadian Dollar is leading other...