Nikkei Crashes as Auto Tariff Reality Hits, Yen and Gold Soar as “Liberation Day” Looms
Risk aversion erupted across Asian markets today, with Japan bearing the brunt of the selloff. Nikkei plummeted by nearly than -4%, marking its worst day in months and sending the index to its lowest level since September last year. The sharp move comes as traders scramble to reassess the...
Markets Rush to Safe Haven as Tariff Clock Ticks Down
While US investors managed to stay relatively composed through most of last week, the calm cracked heading into the weekend. Stocks saw extended selloffs, Treasury yields dropped, and Gold surged to yet another record high — all classic signs of a decisive flight to safety. With risk appetite now...
Markets Sluggish Despite Data Surprises, Caution Prevails Ahead of Tariff Unveil
The forex markets are ending the week in a sluggish and indecisive mood, despite a flurry of notable economic data releases. The highlight was the hotter-than-expected US core PCE inflation, which firmed expectations that Fed will hold rates steady in May, with market pricing now around 90% chance. However,...
Yen Finds Some Relief from Inflation Data, But Struggles to Rebound
The overall mood in the forex markets remains one of indecision, with major currencies largely range-bound. Yen is attempting a mild rebound after Tokyo's CPI figures came in stronger than expected, with core-core inflation rising to 2.2% yoy. However, the Japanese currency is still the worst performer of the...
Sterling and Euro Rebound, Gold Jumps Amid Intensifying Trade Tensions
Global headlines remain focused on US President Donald Trump’s unfolding tariff regime. But traders are telling a slightly different story. FTSE and DAX slip into negative territory, but the pullback in equities remains limited. Sterling and Euro are both strengthening against Dollar indeed.
Tones out of London and Brussels are...
Auto Tariff Hits Wall Street, But Currencies Shrug Off the Drip Feed
The steady drip of tariff news from US President Donald Trump continued overnight, pushing US equities lower and weighing on risk sentiment globally. The tech-heavy NASDAQ led the decline with a drop of over 2%, while broader US indexes also closed in the red. In Asia, Japan’s Nikkei and...
Sterling Lags After CPI Miss, But BoE Rate Cut to Stay Gradual
Sterling fell broadly today after UK’s February CPI came in slightly below expectations. However, the selloff has been contained, with markets still expecting the BoE to proceed cautiously with policy easing. In particular, services inflation remained sticky at 5%, signaling that underlying price pressures are not abating as quickly...
Commodities Lift AUD and CAD as Tariff Speculation Builds
Commodity currencies are finding a bid in Asian session today, though still largely range-bound against Dollar. A sharp rally in Copper prices, driven by US tariff fears, is likely giving Aussie a tailwind, countering lingering drag from today’s slightly weaker-than-expected inflation data. Meanwhile, Loonie is benefitting from speculation that...
Dollar Slips, Euro Bounces, Aussie Awaits CPI
Dollar is once again under pressure as markets head into the US session, with its recent rebound losing steam in the absence of any clear-cut catalyst. While new headlines on tariffs continue to emerge almost daily, these “leaks” could only be seen as reflective of ongoing deliberations within the...
Yen Steadies on Hawkish BoJ Tone, USD/JPY Rally Pauses at Key 150 Level
Financial markets entered Tuesday on a subdued note, with the Asian session notably quiet. While US stocks managed a rebound overnight on speculation that the April 2 “Liberation Day” tariff rollout might be narrower in scope than initially feared, sentiment failed to fully carry into Asia. Equity indices across...
Markets Driven by PMI Data and Tariff Speculations, Silver at Risk of Reversal
Market sentiment today is largely influenced by a mix of global PMI releases and ongoing uncertainty around US tariff policy. There are reports suggesting the Trump administration may exclude a set of sector-specific tariffs from the sweeping reciprocal levies set to begin on April 2. US futures are pointing...
Yen Softens on Weak Japan PMIs Disappoints, Markets Tread Water Elsewhere
Yen weakened broadly in a relatively quiet Asian session, dragged down by disappointing PMI data. The worrying sign is that both manufacturing and services sectors are now in contraction, pointing to growing signs of weakness in Japan’s economy. Despite expectations that BoJ will raise interest rates further this year,...
Global Trends Hit Pause, Consolidations to Follow Until Trump’s Liberation Day
The dominant trends that shaped Q1 in global markets appear to have run their course, with most major assets entering consolidation phase last week.
US stocks staged a mild recovery from steep selloff since mid-February, but upside momentum was notably weak. Meanwhile, Dollar, which had been under pressure throughout March,...
Loonie Softens on Retail Sales Miss, But BoC Inflation Focus Limits Losses
Canadian Dollar weakened modestly in early US session following disappointing retail sales data. January’s figures showed a larger-than-contraction, and more importantly, an advance estimate points to another drop in February. This suggests consumer spending might be in a weakening trend, raising fresh concerns about Canada’s economic momentum heading into...
Dollar Recovery Remains Fragile While Bitcoin Struggles for Traction
Dollar continues to grapple with reversing its recent bearish trend, but momentum behind the rebound remains tentative at best. The greenback has received modest support from Fed’s stance, with policymakers emphasizing there’s no urgency to resume rate cuts. This, combined with a general reassessment of earlier bearish bets, has...
Sterling Holds Firm After BoE, But Dollar and Yen Outperform
Sterling is trading slightly firmer today, though it struggles against the rebounding Dollar and Yen. BoE's rate decision leaned slightly more hawkish than expected, with only one member of the MPC, the known dove Swati Dhingra, voting for a rate cut. The rest supported keeping rates on hold. The...
Yen Rebounds on Risk-Off Mood in Asia, Focus Shifts to SNB and BoE
Asian markets are showing signs of mild risk-off sentiment today, with Hong Kong and China stocks retreating from recent gains. The weaker regional tone contributed to a stronger Yen. Additionally, Yen’s rebound is also fueled by post-FOMC Dollar softness. The technical picture suggests that the recent pullback in Yen...
Dollar Recovers as Markets Await Fed Projections, Gold Loses Some Momentum
Dollar is recovering across the board as markets enter the US session, though the move appears to be more caution-driven than a shift in sentiment. With FOMC rate decision looming, traders are taking a more neutral stance rather than doubling down on Dollar’s recent weakness. Fed is widely expected...
Dollar Stays Weak as Markets Await Fed Guidance, Yen Softens After BoJ Hold
Dollar remains under pressure as markets await FOMC rate decision and, more crucially, the updated economic projections. While the central bank is widely expected to hold rates steady at 4.25-4.50%, traders are looking for any signs that Fed officials are adjusting their outlook in response to mounting trade tensions....
Canadian Dollar Gains on Inflation Surprise, But Growth Risks Keep Traders Cautious
Canadian Dollar edged higher in early US session after much stronger-than-expected inflation data. However, Loonie quickly lost momentum, as investors remained cautious about Canada’s broader economic outlook, particularly in the face of rising trade tensions with the US.
While higher-than-expected inflation reduces the likelihood of another immediate rate cut, Canada’s...