Central Bank Signals Ignored; Consolidation Continues in Currency Markets
The financial markets are relatively quiet in Asian session today, with major currency pairs and crosses trading within yesterday's range. BoC's summary of deliberations suggested that the central bank is on track for further policy loosening. Meanwhile, BoJ's summary of opinions indicated the board is preparing for more rate...
BoC Deliberations Awaited as Kiwi Gains, Yen Falls
News flow has been slow today, with only second-tier economic data coming out of Europe and no major releases from the US. Some attention is turning towards Canada, where BoC is set to release its summary of deliberations from the July 24 meeting, which resulted in the second rate...
NZD Rallies on Strong Q2 Employment Data; JPY Sinks Amid BoJ Caution
New Zealand Dollar surged strongly today following much better than expected Q2 employment data.. Speculations of an early rate cut by RBNZ next week now seem exaggerated. Major banks still expect RBNZ to start easing monetary policy this year, with consensus pointing to the November meeting. However, there's still...
Dollar Strengthens Mildly Amid Market Calm, Sterling Weakens
Dollar is showing broad but mild strength today as global financial markets stabilize after recent turmoil. The stock market rebound, including a notable 10% surge in the Nikkei, appears to be driven by short covering rather than a sustained recovery. Despite the temporary calm, the risk of another round...
Market Volatility Persists, Aussie Steady with RBA’s Intricate Inflation Forecast
The financial markets continued to see extreme volatility. DOW dropped by over -1000 points overnight, but the global rout seems to have paused for now. Nikkei staged a dramatic 10% rebound in early trading after yesterday's history plunge of -12.4%. However, this recovery was not mirrored by other Asian...
Global Markets Crashing: Nikkei’s Historic 12.4% Plunge, DOW Futures Down 1100 Points
Global stock markets are in crash mode today, beginning with the massive historic -12.4% decline in Nikkei. Major European indexes are also trading deeply in the red, with losses around -3%, though these are overshadowed by the severe drop in Japan. Concurrently, DOW futures are down over -1100 points,...
Market Rout Deepens Globally: Will ISM Services Provide Relief?
The global market turmoil showed no signs of easing as the week began, with Japanese stocks taking a severe hit during Asian session. Both the Nikkei 225 and Topix indices plunged by as much as nearly -10%, marking a -20% drop from their all-time highs on July 11. This...
Market Turmoil Intensifies With Deepening Recession Fears
The financial markets were marked by significant turbulence this last week again, dominated by risk aversion. Evidence are surfacing that the US economy is heading for a recession, or even hard landing. Speculation is mounting that Fed might be compelled to implement aggressive rate cuts, totaling 75 basis points...
Risk Aversion Deepens as US Non-Farm Payrolls Fall Short of Expectations
Risk aversion is intensifying in early US session after non-farm payroll report significantly missed expectations on all fronts. This follows yesterday's poor manufacturing data, which has already sparked discussions about a hard landing for the US economy. The weak job data is likely to fuel these concerns further, as...
Market Turmoil Boosts Safe Haven Currencies ahead of NFP, GBP/CHF Under Pressure
Safe haven currencies are dominating the market as the steep selloff in the US extended into Asian trading, with Nikkei down more than -5%. Poor US manufacturing data released overnight has intensified investor concerns about an impending recession, overshadowing the benefits of monetary policy easing from Fed. The market's...
Sterling Stabilizes After Initial Selloff, BoE Easing Not Automatic Despite First Cut
Sterling suffered an initial sell-off in European trading and remained weak following BoE's decision to cut the Bank Rate by 25 basis points to 5.00%. However, it stabilized during Governor Andrew Bailey's press conference. The tight 5-4 vote to cut the rate underscored that monetary policy easing is not...
Dollar Steady Following FOMC, BoE Rate Decision Looms
Dollar remained relatively steady following the balanced post-FOMC press conference, with notable exceptions against the stronger yen and Swiss franc. Fed Chair Jerome Powell explicitly mentioned the possibility of a rate cut in September but refrained from making any firm commitments or providing extended guidance. While markets are aggressively...
Dollar Dips on Weak ADP While Yen Marches On, Market Awaits FOMC
Dollar dipped as weaker-than-expected ADP job data hit the market entering US session. However, the movement has been limited with traders bracing for FOMC rate decision. Fed is widely expected to keep its policy rate unchanged at 5.25-5.50% today. The main focus is whether Fed will signal enough "confidence"...
Yen Up Slightly After BoJ Hike; Aussie Tumbles on Core Inflation Relief
Yen rose broadly today after the BoJ raised interest rates for the second time this year, and maintained hawkish bias. However, buying momentum has not been decisive. This lack of strong momentum can be attributed to the fact that the rate hike decision was likely well priced in by...
Quiet Forex Trading with Dollar Leading, AUD/JPY at Make-or-Break Level
Overall trading in the forex markets remained relatively subdued today. Dollar continues to hold the top position, despite the absence of clear follow-through buying momentum. Investor caution is also evident in US stock futures, which are moving within a tight range. Any movement in the US markets is likely...
Dollar Holds Firm Against Euro in Quiet Trading, Cautious Sentiment Prevails
Dollar remains firm against European majors in relatively quiet trading today. Despite slightly better-than-expected GDP data from France, Euro has not gained significant support. While today's Eurozone GDP and tomorrow's CPI flash are important, they are unlikely to cause substantial movements in Euro. Traders' attention is firmly on tomorrow's...
Dollar Rally Gains Momentum as European Majors Falter
Dollar's rally is gaining significant traction today, as major European currencies face increasing selling pressure. The break of last week's lows in both EUR/USD and GBP/USD pairs suggests that the greenback's rise is poised to extend further in the near term. However, the sustainability of this rally will largely...
Quiet Forex Session Precedes Three Central Bank Meetings and High-Impact Data
Trading in the forex markets has been notably subdued during the Asian session today, even as major Asian stock indexes showed strong rebounds. This muted activity in currency trading is not surprising given that it's a typical Monday, coupled with an ultra light economic calendar. However, significant volatility is...
Multiple Themes Play Out in Turbulent Week, Yield Curve De-Inversion Most Significant
It was a highly volatile week which cannot be characterized by a single theme. Yen had a sharp and robust rally against all major currencies, continuing its rebound from the 38-year lows hit earlier this month, with market participants unwinding their long-held short positions. Alongside Yen, Swiss Franc and...
Forex Markets Steady as Traders Shrug US PCE Data
Trading in the forex markets remains subdued today as investors take a breather from a week of high volatility. Most major currency pairs and crosses are trading within yesterday's ranges, with little reaction to US PCE inflation data. Annual Core PCE rate was surprisingly unchanged in June, but the...