Rising US Yields Push Dollar Higher, While Yen and Euro Struggle
Dollar strengthened broadly overnight, propelled by the extended rally in US Treasury yields. 10-year yield soared to its highest level since late July, breaching 4.2% mark during Asian trading session. The move reflects growing market expectations that Fed's monetary policy easing will proceed more slowly than initially hoped. Importantly,...
Dollar Hold Firm as Yen Weakens Amid Subdued Trading
In the largely uneventful Asian and European sessions today, major currencies remained within familiar ranges, as the absence of key economic data releases kept markets subdued. Central bank commentary continued to dominate the narrative, particularly from ECB officials, who maintained their dovish stance. However, this comes as little surprise,...
Forex Markets in Consolidation, Bitcoin Struggles at 70k
In the Asian trading session today, the forex markets remained largely in consolidative state, with most major currency pairs moving within familiar ranges. Japanese Yen showed slight firmness, trading in a tight range alongside the Dollar and Kiwi. Conversely, British Pound Sterling softened, accompanied by Loonie and Aussie. The...
Dollar Extends Winning Streak, Though Momentum Hints at Waning Strength
Dollar continued its reign as the strongest currency for yet another week, bolstered by solidifying expectations around gradual and measured rate cut cycle by Fed. The rate cut from ECB provided some additional tailwind for the greenback. However, momentum behind the Dollar's rise remains tepid. Strong risk-on sentiment, coupled...
Dollar Holds Dominance, Sterling Closing In
Dollar remains the top performer for the week, despite a mild pullback today. Sterling jumped into second place, buoyed by stronger-than-expected UK retail sales data. Meanwhile, Canadian Dollar holds third position, although its momentum has waned, suggesting it could slip before the weekly close.
On the weaker side, Swiss Franc...
Sterling Rallies After Strong UK Retail Sales, Yen Recovers on Japan’s Verbal Intervention
Sterling rises broadly today, driven by unexpectedly strong retail sales figures for September. This recovery suggests that the negative impact of weaker-than-expected CPI data earlier in the week has been fully absorbed by the market. While it now seems likely that BoE will proceed with interest rate cuts in...
Dovish ECB Rate Cut Pressures Euro, Gold Breaks to Fresh Record
Euro tumbled broadly after ECB’s decision to cut its deposit rate by 25bps, as widely expected. During the post-meeting press conference, President Christine Lagarde maintained a cautious tone, stressing that ECB is "not pre-committing to a particular rate path." However, her overall stance leaned dovish, with a clear acknowledgment...
Aussie Bounces on Strong Employment Data, But Concerns Over China Keep Gains in Check
Australian Dollar saw a modest rebound in the Asian session today, buoyed by much stronger-than-expected employment data. The Australian labor market continues to display resilience, with full-time jobs rising sharply, pushing the total over 10 million for the first time, while unemployment rate held steady at 4.1%. This robust...
Sterling Weak as BoE Rate Cut Odds Rise, But Downside Limited for Now
Sterling is currently the weakest performer in today’s trading, though selling pressure remains somewhat contained for now. Weaker-than-expected inflation data from the UK further strengthened the case for BoE to cut interest rates in November. More critically, markets are now pricing in a higher probability of another back-to-back rate...
Sterling Drops as UK Inflation Falls More Than Expected, BoE Rate Cut Likely in Nov
Sterling has taken a significant hit after UK inflation data for September showed sharper-than-expected decline, falling below BoE's 2% target again, and hit the lowest level in over three years. Core CPI also fell more than forecasted, indicating a stronger pace of disinflation. Services prices, a key inflation driver,...
Canadian Dollar Slumps as Inflation Miss Heightens BoC 50bps Cut Expectations
Canadian Dollar weakens broadly decline in early US session following weaker-than-expected inflation data. The drop in headline CPI, driven primarily by falling gasoline prices, was steeper than anticipated. However, core inflation measures, especially the closely-watched CPI common, remained near 2% level. This further solidifies expectations that BoC would accelerate...
Dollar Gains Amid Mixed Sentiment, Nikkei Soars Follow US, While China Struggles
Risk sentiment in Asia was mixed today. Japan's Nikkei 225 index extended its rally and broke above the 40k mark for the first time in three months. This momentum firstly follows another record close on Wall Street overnight. Secondly, contributing to the optimism are growing expectations that BoJ may...
Dollar Rallies as Thin Liquidity Fuels Gains
Dollar is broadly stronger today in what is otherwise a quiet trading session. With US markets closed for holiday, overall activity has been subdued. However, Dollar bulls seem to be taking advantage of the thinner liquidity to push the greenback higher. The anticipation of further interest rate cuts from...
Dollar Strengthens Mildly Amid Quiet Trading, ECB to Cut Again This Week
The Monday Asian session started quietly with Japan on holiday and the US and Canada on extended weekends. Market reactions to China’s Minister of Finance press briefing over the weekend have been subdued, as traders await further details regarding China’s anticipated fiscal stimulus. Without specifics, it's difficult to gauge...
Dollar Strengthens with Fed Clarity, China Ambiguity Drags Regional Sentiment
Global financial markets last week were influenced by a combination of clarity and uncertainty. In the US, economic data reinforced expectations of a gradual and measured policy easing path by Fed. Investors embraced the prospect that Fed would not repeat the aggressive 50 bps rate cut implemented in September....
Muted Trading as Canadian Dollar Fails to Bounce on Strong Job Data
Trading in the early US session is relatively subdued, with little momentum driving market moves. Canadian Dollar, despite an initial attempt to rally on the back of stronger-than-expected job data, has not been able to attract sustained buying interest. The market continues to price in further easing from BoC,...
Risk Sentiment Steadies as Dollar Softens, GBP/CAD Eyes UK and Canada Data
Risk sentiment appears to have stabilized heading into the weekend, despite stronger-than-expected US inflation data released overnight. The report didn’t cause any significant shifts in market expectations regarding Fed's rate cuts. Stock markets also showed resilience, with major US indexes closing only slightly lower.
Dollar, however, has lost some momentum,...
Dollar Struggles for Direction Amid Mixed Signals: Strong Inflation vs. Weak Jobs Data
Dollar is struggling to find a clear direction after a set of contrasting economic data sent mixed signals to the markets. On one side, inflationary pressures remain elevated, especially with core inflation ticking up, signals that Fed won't be able to accelerate its policy easing. On the other hand,...
Risk Appetite Returns as Focus Shifts to US CPI
Risk-on sentiment is back in the global markets, with DOW and S&P 500 surging to new record highs in the latest session. Notably, this rally isn’t limited to just the big tech giants. ETFs tracking both industrials and financials sectors also closed at record highs, signaling that the strength...
Dollar Edges Higher Ahead of FOMC Minutes; Commodity Currencies Continue to Struggle
Dollar is broadly stronger today, though the momentum behind the move is not particularly robust. Markets are awaiting insights from several Fed officials and the release of September FOMC minutes later in the US session. While Fed's direction on monetary easing is well understood, the pace of future rate...