Sterling Tumbles as UK Seeks Irish Backstop Renegotiation, Dollar Awaits FOMC and Trade Talks
Sterling tumbled broadly as the UK opened a new chapter in Brexit negotiation with yesterday's parliamentary amendment votes. In short, Prime Minister Theresa May needs to go back to EU to renegotiate the Irish backstop into alternative arrangements. But EU has repeated its stance on no renegotiation. For now...
Sterling Regains Ground But Upside Limited by Brexit Uncertainties
Sterling strengthens broadly today but upside is capped as markets are now watching Brexit debate in the Commons. The opening statement of May was rather dull as she repeated the pledge to deliver Brexit. Meanwhile the situation got more complicated and confusing today as other alternatives emerge, most notably...
Sterling Soft as Brexit Votes Awaited, Yen Shrugs Mild Risk Aversion
The forex markets remain rather quiet today so far. The selloff in stocks and oil overnight triggered some pull back in Canadian and Australian Dollars, but losses were limited. Similar, Yen was given just a mild pop while it's unmoved by the shallow decline in Asian stocks.
Though, "softness" in...
Sterling and Canadian Weaken in Quiet Markets, Dollar Mixed ahead of Key Events
Trading in the forex markets has been rather subdued for most of the day. But there are signs of some additional weakness in Sterling and Canadian Dollar in early US session. Traders could be lightening up positions ahead tomorrow's Brexit votes and debates in the Commons. But the Pound...
FOMC Preview – How Dovish is the Fed?
There are several issues we are expecting from the FOMC meeting later this week. While it is widely anticipated that the Fed would leave its policy rate unchanged at 2.25-2.5%, the potential changes in the accompanying statement and the message conveyed by chair Jerome Powell would be indicative of...
Dollar Weakness in Focus ahead of a Busy Week
Dollar weakness remains the main focus in rather directionless markets today. The greenback suffered steep selloff last Friday on rumors that Fed would discussing cutting short the balance reduction process. And Dollar will face a number of key events this week. FOMC meeting is for sure a highly anticipated...
FOMC, Government Reopen, US-China Trade Talks & NFP ahead for Dollar
Dollar ended last week as the weakest one after deep selloff before weekly close. A whole lot of events are scheduled ahead to keep the greenback busy. Those include FOMC rate decision, US-China trade talk, non-farm payrolls. Also, the partial government shutdown has finally ended temporarily and we'll have...
Yen, Dollar and Swiss Franc Suffer as Markets in Full Risk-On Mode
Yen traders broadly lower today as risk appetite extends from Asia markets to Europe and then US. Dollar is following as the second weakest and then Swiss Franc. Meanwhile, New Zealand, Australian and Canadian Dollars are the strongest one. The development is pretty normal on a "risk-on" day. Sterling...
Sterling Surges on Irish Backstop Time Limit Rumor, Pressing Key Resistance Against Dollar and Euro
Sterling surges broadly today on rumors that Northern Ireland's DUP has privately agreed to conditional support to Prime Minister Theresa May's Brexit deal. The Pound is also the strongest one for the week. While there are still a lot of uncertainties surrounding Brexit outcome, at least, the threat of...
US Oil Inventory Increased Across the Board as Fear on Global Slowdown Intensified
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks gained +6.7 mmb to 1267.11 mmb in the week ended January 18. Crude oil inventory soared +7.97 mmb to 445.03 mmb (consensus: -0.04 mmb). Inventories increased in ALL 5...
ECB Turns Dovish amid Heightened Global Uncertainties
The ECB meeting evolved as we had expected: more dovish, downgraded assessment on economy, leaving unchanged the forward guidance on interest rates. the central bank has acknowledged that the uncertainties in the global economy have intensified and can persist for quite an extended time. No change was made in...
Euro Survives Downbeat ECB and Weak PMIs, Safe for Now
Euro has been under broad based pressure today after PMIs suggest more weakness in the economy ahead. The common currency then spikes further lower ECB President Mario Draghi sounds rather cautious and downbeat in the post meeting press conference. However, Euro quickly recovers as Draghi actually didn't bring out...
Euro’s Recovery Might be Cut Short by Weak PMIs and Cautious ECB
European majors are trading generally higher today as Eurozone will take the center of stage. There are worries of deeper and longer than expected slowdown in the Eurozone economy. PMIs from Germany, France and Eurozone will provide some hints on economic performance at the start of the year. ECB...
BOJ Cut CPI Forecasts, But Is it Realistic to Expect Tax Hike will Help Inflation?
As widely anticipated, BOJ voted 7-2 to leave left the policy rate unchanged at -0.1% in January. All other policies also remained intact: purchases of JGBs at a pace of 80 trillion yen/ year and maintenance of 10-year JGB yield at 0%, with trading band at +0.2% and –...
Sterling Shines as Campaign to Block No-Deal Brexit Gains Momentum
Sterling is the star performer today as campaign to block no-deal Brexit in the UK gathers momentum. Some upside acceleration is seen after the Pound takes out near term resistance against Dollar, Euro and Yen. New Zealand Dollar is following as the second strongest as boosted by stronger than...
Yen Lower after BoJ Downgrades Inflation Forecasts, Sterling Pressing Near Term Resistance
Risk sentiments stabilized in Asia today despite the selloff in US overnight. But so far, momentum for rebound in stocks is very weak. Major indices are stuck in right range between gains and losses, in particular in China and Hong Kong. Yen is trading as the weakest one for...
Yen Strengthens With Markets in Mild Risk Aversion, Australian Dollar Tumbles
Mild risk aversion is the main theme in the financial markets today. Selloff started in Asia, in particular in China, and spread to European session. Japan 10-year JGB yield also turned negative again. In the currency markets, Australian Dollar leads other commodity currencies lower in a typical day of...
Sterling Soft on Brexit Stalemate, Yen and Dollar Higher
Sterling is trading lower in Asian session today as UK Prime Minister Theresa May's uninspiring statement did nothing to break the stalemate. But, commodity currencies are equally weak, if not weaker, following decline in the stock markets. There is no clear theme but investors appear to be turning cautious...
Dollar Attempting to Rise in Mixed Holiday Markets, Near Term Resistance Still Holds
The forex markets are rather mixed and quiet today. Trading has also become a bit subdued as US is on Martin Luther King day holiday. But UK Prime Minister Theresa May's Brexit plan B might still trigger some volatility. For now, New Zealand Dollar remains the weakest one for...
Chinese Economy Shows Signs of Stabilization in Late 2018. More Challenge Ahead
The latest set of macroeconomic data for China shows signs of stabilization. This could be attributed to the government's expansionary policies both monetarily and fiscally. While the government is expected to add more stimuli this year, the challenge remains tough.
GDP growth eased to +6.4% y/y in 4Q18, from +6.5%...