CFTC Commitments of Traders – USD Bulls Triumphed as Greenback Remained Firm
USD rose against major currencies with the exception of JPY and GBP. As suggested in the CFTC Commitments of Traders report in the week ended October 9, NET LENGTH of USD index climbed slightly, by +673 contracts, to 37 709 contracts. Both speculative long and short positions increased during...
CFTC Commitments of Traders – NET SHORT for Natural Gas Narrows Further on Winter Demand Hopes
According to the CFTC Commitments of Traders report for the week ended October 9, traders turned less bullish on the energy market. NET LENGTH for crude oil, heating oil and gasoline futures dropped. Speculative long positions of crude oil futures declined -20 782 contracts, while shorts added +76 contracts,...
Sterling Sharply Lower on Irish Border Deadlock, Risk Aversion is Back in Asia Too
Sterling is trading the the biggest loser today as it gapped down on negative Brexit news. It's getting unlikely to have breakthrough in the sticky issue of Irish border at the EU summit this week. Elsewhere risk aversion is back in Asian markets as selloffs in stocks resume. Reactions...
Conditions Still in Place for Further Dollar Rally Despite Trump’s Crazy Fed Attack
Global stock market crashed last week as the US finally joined the others. It should be reminded that as DOW made record high in early October, all other major markets suffered selloff already. It's stretched to blame rising US treasury yields as a factor as it's easy to see...
Rebound in Global Stocks Lifts Dollar, Treasury Mnuchin also Helps
Global equities rebound and are paring back some of this week's steep losses ahead of weekly close. Dollar is also recovering, in particular against Euro and Sterling. US Treasury Secretary Steven Mnuchin comment on Fed also helped give the greenback a mild lift. But for today, Canadian and Australian...
Asian Markets Rebound Despite Another US Selloff, IMF Downgrade
While the US markets tumbled for another day overnight, Asian markets showed their own resilience and turned positive after initial pressure. Nikkei closed up 0.46% at 22694.66. Japanese 10 year JGB yield is also above 0.15 at 0.151, up 0.0059. Singapore Strait Times is rising 0.72%. Hong Kong HSI...
Dollar Softens Again as Investors Cheer US CPI Miss
After suffering yesterday's deeper selloff, there's hope for some stabilization and recovery in US stocks. Investors are cheering US CPI miss as DOW futures pare back some of earlier losses. The greenback, on the other hand, is suffering refreshed selling after the release. Japanese yen follow as the second...
Dollar Weak as Trump Attacks Fed after Stock Market Crash
Asian markets are in crisis mode as dragged down by the stock market crash in the US over night. At the time of writing, Nikkei is down -970 pts or -4.13%. Singapore Strait Times is down -89.59 pts or -2.86%. Hong Kong HSI is down -1010 pts or -3.86%....
Sterling Resilient Despite UK GDP Miss, Euro Firm as German-Italian Spread Back Below 300
Sterling continues show a lot of resilience today. In despite of weaker than expected August GDP report, as well as mixed productions data. the Pound manages to trade as the strongest one for today. Optimism on Brexit negotiation is a factor as there are rumors flying around, hailing progress...
Who is a Currency Manipulator?
As US-China trade war continues to evolve, the market is increasingly concerned over the pace of slowdown in China’s economic growth. Meanwhile, weakness in renminbi (China Yuan) has given more bullets for the White House to attack China and threaten to impose more restriction. US Treasury’s semiannual currency report,...
Dollar Softens as Trump Criticized Fed Again, Overshadow Upbeat Fedspeaks
Dollar's pull back extends in Asian session today after yesterday's rally attempts failed. Retreat in treasury yields is a factor weighing down the greenback. The late rebound in Italian bond was another factor. Though, Yen is even weaker as risk sentiments stabilized. On the other hand, Australian Dollar and...
Euro Tumbles on Italian Yield, German Data and IMF Growth Downgrade
Euro suffers heavy selling today as German-Italian yield spread widens further to above 310. It's clear that Italy is not doing to back down on its budget deficit plan despite strong criticism from EU. Besides, it would be facing risks of downgrade by credit agencies. Additional Euro weighed down...
Markets Mixed as Risk Aversion Peaked Temporarily, Dollar Turned into Corrective Mode
The financial markets are mixed in Asia today as risk aversion seemed to have peaked for now. NASDAQ led US stocks decline overnight a hit as low as 7654.84 but closed down only -0.67% at 7735.95. S&P 500 also dipped to 2862.08 but closed down -0.04% at 2884.43. DOW...
Yen Rises as Italy Prompts Risk Aversion, Euro and Sterling Weak
Yen surges broadly today as risk aversion dominates the markets. Italy is at the center of storm as yield spread with Germany stays above 300 alarming level, on concerns over budget deficit. Despite criticism from EU and risk of credit rating downgrade, the populist government doesn't appear to be...
China Eases Monetary Policy Further, Intervening to Avoid Sharp Fall in Renminbi
China announced to cut RRR by 100 bps, effective October 15 and applicable to all types of banks, including large commercial banks, joint-stock banks, city commercial banks, non-county rural commercial banks, and foreign banks whose current RRR stand at 15.5% (large banks) or 13.5% (small to medium banks). The...
Australian Dollar Recovers as Chinese Stocks Down But Not Out after Holiday
Risk aversion continues in Asian market but there is no disastrous development. Chinese stocks are back from holiday, down -3%. That's just playing catch up to last week's broad based decline in other Asian markets. China's RRR cut on Sunday stabilized sentiments somewhat, without giving it any lift though....
CFTC Commitments of Traders – EUR Futures Drifted to NET SHORT on Italy Deficit Concerns
USD bulls lost ground as the greenback corrected from its peak. As suggested in the CFTC Commitments of Traders report in the week ended October 2, NET LENGTH of USD index climbed mildly higher, by +27 contracts to 37 036 contracts. Both speculative long and short positions increased only...
CFTC Commitments of Traders – NET LENGTH for WTI Crude Oil Dropped as Price Peaks
According to the CFTC Commitments of Traders report for the week ended October 2, NET LENGTH for crude oil futures dropped as prices were peaking. Meanwhile, NET LENGTH heating oil and gasoline futures increased further, and NET SHORT for natural gas futures declined. Speculative long positions of crude oil...
Dollar Surged on Treasury Yields and Bets on Fed Hikes, Except Versus Sterling
It's another week's that's full of headlines. Sterling ended as the strongest one on revised hope of a Brexit deal with the EU despite all the rhetorics. UK Prime Minister Theresa May also survived the Conservative Party conference without dance but no disaster. Dollar followed as the second strongest...
Dollar Steady after Mixed NFP, But Risks More Downside as Consolidation Extends
Dollar stays steady in early US session after mixed non-farm payrolls report. Even though Canada reported a set of far more impressive data, USD/CAD is back into tight range after initial knee-jerk reactions. For now, Sterling is the strongest one for today, followed by the greenback. Yen is the...