Global Central Banks Rushed to Stimulus Amidst Limited Monetary Policy Tools
As the coronavirus pandemic could very likely lead the world to recession, global central banks have rushed to inject liquidity through rate cuts another other unconventional measures. However, interest rates have already stayed at very low levels before the crisis. The room for further rate cuts is limited. Some...
US Coronavirus Infections and Stocks Surge, Dollar Weakens
Dollar is set to end the week as the week as the worst performing as corrections in the financial markets extend. Asian indices are generally higher following another day of strong close in the US overnight. Yen follows Dollar as the second weakest naturally as risk aversion eased. Meanwhile,...
Dollar Stays Soft after Shocking Jobless Claims, BoE Stands Pat
Dollar softens mildly again today as consolidation extends. The shock delivered by initial jobless claims is actually rather well expected. The greenback dips slightly after Fed chair Jerome Powell's comments, but that's it. BoE keep monetary policies unchanged at the scheduled meeting today, which also triggered little reactions. Yen...
Risk Rebound Fades as Focus Turns to Jobless Claims and BoE
Asian markets turn softer today as boost from US stimulus package fades very quickly. Focus will instead turn to BoE rate decision and US jobless claims. In particular, the latter would reveal how serious the initial impact of coronavirus outbreak in the US is. In the currency markets, commodity...
Markets Turned Mixed after Stimulus Rally, Dollar Staying in Consolidations
The stimulus deal in US Congress gave markets just a very brief lift. European indices turned mixed after initial rally while US futures are essentially flat. Trading in the currency markets is subdued too with Australian Dollar leading commodity currencies higher. Yen, Swiss Franc and Dollar remain soft. Gold...
Sentiments Boosted By US Stimulus Deal, Dollar, Yen and Swiss Soften
Asian markets generally strengthen today and are given another lift after US politicians finally agreed to a USD 2T coronavirus stimulus deal. Australian Dollar leads other commodity currencies higher. On the other hand, Yen weakens broadly, followed by Yen and then Dollar. Some important economic data will be released...
Markets Shrug Disastrous PMIs, Continue to Digest Recent Moves
PMI data released together generally showed a disastrous picture in the service sectors around the world, due to coronavirus pandemic and the measures to contain it. Nevertheless, these data are generally shrugged off as they're generally expected. Reactions would likely be muted too even if the data come in...
Dollar Softens on Fed QE Infinity, Global PMIs in Focus
While Fed's QE infinity gave no apparent boost to US stocks, Asian markets are responding rather positively. Strong gains are seen in major indices. Dollar has turned broadly weak, followed by Swiss Franc, Yen and Euro. Australian Dollar is leading commodity currencies higher. Gold also ride on greenback's pull...
Flash PMI Gives More Evidence that Japan has Entered Recession, Unlikely to be Rescued by Stimulus
A week before the final data, the flash PMI report for Japan gives a glimpse of how the coronavirus outbreak has hurt the country’s manufacturing and services activities. The composite output index slumped to 35.8, compared with 47 in February. Sector-wise, the services index dived to 32.7 in March...
Sentiments Take a U-Turn as Fed Goes QE Unlimited
Market sentiments take a u-turn today after Fed surprised the markets with another emergency announce. Now, the targets for asset purchases are removed and Fed is going into QE unlimited. US futures turned from limit down to positive while major European indices pared back much of earlier losses. The...
Risk Aversion Continues, RBNZ Cut, NZ & AU Lockdown, US to See Surge in Unemployment
Markets are back in risk averse mode as another week starts, after Spain and Italy suffered the worst days of coronavirus pandemic over the weekend. US Senate failed to advance another aid package on differences between Republican and Democrats. But resolution would be seen soon based on the severity...
RBNZ Announced QE to Tame Tightening Market Conditions
RBNZ announced QE on Monday, following an aggressive emergency rate cut, by -75 bps, to 0.25% last week. The surprising move aims at soothing the credit conditions which have tightened significantly over the past weeks. Besides QE, the central bank last week introduced a Term Auction Facility, FX swap...
CFTC Commitments of Traders – Bets on Major Currencies Reduced as Global Central Banks Rushed to Cut Rates
Bets on major currency futures were trimmed on last week, as major central banks announced emergency measures to contain risks of global recession. US dollar soared last week despite Fed's two rate cuts in 2 weeks, bringing the Fed funds rate -150 bps lower. Besides announcing to expand QE...
CFTC Commitments of Traders – Traders Trimmed Bets on Commodities amidst Rising Global Uncertainty
Bets on oil and precious metals futures fell across the board. According to the CFTC Commitments of Traders report for the week ended March 17, NET LENGTH for crude oil futures jumped +52 840 contracts to 440 237 for the week. Speculative long positions fell -14 748 contracts while...
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 Staying in Consolidation as Dollar and Yen Turn Mildly Softer
The financial markets are generally staying in consolidative mode today. Global stocks managed to reverse some of this week's loss. in the currency markets, Dollar pares back some of recent gains while commodity currencies recover. Though, these moves are generally seen as profit-taking and position adjust ahead of the...
Markets Digesting Wild Moves, Stabilizing ahead of Weekend
Asian markets are rather quiet finally as the weekend is coming. Currencies are digesting this week's sharp moves for now, with mild recovery seen in commodity currencies and Sterling. Dollar and Yen turn slightly softer. But for the week, the greenback remains strongest, followed by Yen and Swiss Franc....
ECB’s Stimulus Lifted Peripheral Bonds, But Not Stocks Nor Euro
ECB's massive coronavirus pandemic program do have notably impact on peripheral bond markets. In particulars, Italian and Spanish bond yields dropped sharply today, with Italy 10-year yield back below 1.9% currently, Spanish 10-year yield below 0.9%. The boost to other markets is not that apparent though, as European stocks...
No Support from ECB’s Pandemic Emergency Purchase, Nor RBA’s Rate Cut and Bond Buying
Once again, it seems that emergency fiscal and monetary measures by global governments and central banks couldn't be cared less by investors. US Congress' second stimulus package, ECB's massive EUR 750B pandemic emergency purchase program, RBA's rate cut and government bond buying, are all shrugged off. Optimism won't come...
RBA Announced Emergency Rate Cut, Initiated QE
RBA announced an emergency rate cut of -25 bps, sending the cash rate to 0.25%, today. The central bank also announced a QE-style yield curve control plan. It attempts to target the yield for 3-year government bond at 0.25% through bond purchases. The move is not too surprising, following...