Euro to End the Month on a Strong Note, Inflation Data Couldn’t Help Dollar
Euro continues to trade as the strongest one for today as boosted by the EU leader's agreement on immigration. While the common hasn't been the star this month, it's indeed up against all but Dollar. European stocks investors are also happy with the result. At the time of writing,...
Euro Cheers EU Agreement on Migration, Yen Dives as Chinese Stocks Rebound
Euro surges broadly today as traders cheer the agreement by EU leaders on migration. Australian Dollar follows as the second strongest as Chinese stocks lead a strong rebound in Asian equities. At the time of writing the Shanghai composite is up 1.2%, Hong Kong HSI is up 1.15% while...
Sterling Downside Breakout Against Dollar and Euro, Risk Aversion Stays
Risk aversion continue to be a main theme in the markets, ahead of quarter end. At the time of writing, major European indices are trading in red. DAX leads again by losing -1.27%, CAC down -0.76% and FTSE down -0.44%. DOW futures also point to more losses. Oil prices...
Huge Decline US Oil Inventory Sent WTI Crude to Highest Level since 2014
Both oil benchmarks rallied for two days in a row. The front-month WTI crude contract has obviously outperformed, accumulating gains of 6.7% over the past two days. The Brent contract added +3.8% during the period. WTI's rally was driven by the sharp decline in US oil inventory.
The report from...
RBNZ More Dovish in June Meeting
RBNZ left the OCR unchanged at 1.75%. While the central bank reiterated its “neutral” monetary policy stance, the accompanying statement revealed that policymakers have turned slightly more dovish than previous months. The members were concerned about global trade tensions and the resulting financial market volatility. They also acknowledged more...
Dollar Stays Strong after Roller Coaster Ride in Stocks
It was a roller coaster ride in US stocks overnight. The markets cheered Trump's backing down on the hard-line position on curbing Chinese investments in US companies. But White House economic advisor Larry Kudlow spoiled the party said the plan is neither harder nor softer. NASDAQ led the losses...
Dollar and Stocks Cheer as Trump Backs Down on Chinese Investments
Dollar ignores mixed economic data and surges broadly, except versus Canadian in early US session. Sentiments are generally lifted by news that Trump is backing down again on his tough stance on curbing Chinese investments, after backfires from businesses and Republicans. The mixed messages from White Houses are also...
Rising Rates Not Going to Derail Hong Kong Property Market, Weakening Chinese Economy Might
Although Hong Kong dollar (HKD) had approached the weak side (7.85) of the trading band against US dollar (USD) in May and June, after HKMA’s intervention in April, the gap between HIBOR and LIBOR has narrowed significantly since then. Through buying HKD and selling USD, HKMA’s numerous rounds of...
Markets Getting Comfortably Numb on Trade Spats
The forex markets are generally in range today except New Zealand Dollar, which tumbles broadly following business confidence data. The US continued to step up its verbal attack on trade partners, but the financial markets are not too bothered about it. Asian indices are mixed with Nikkei trading nearly...
Forex Markets Staying Corrective Despite Trade Spat Escalations
The stock markets are rather steady today so far even though US continues with its tariff threats on other countries. At the time of writing, European indices are mixed with DAX nearly flat while CAC is up 0.2%. FTSE is indeed registering 0.5% again thanks to the slightly weaker...
Global Stocks Down as White House Sent Confusing Messages on Foreign Investment Curb, Yen Strong
Trade tension and protectionism remain the major theme in the financial markets. Following the selloff in US stocks, Asian indices are generally under pressure today. At the time of writing, Nikkei is trading down -0.52%, Hong Kong HSI is down -0.88%. China's Shanghai composite extends recent steep slide and...
Euro Lifted as German Ifo Marginally Beat Expectation, But Yen Still the Strongest on Trade Threats
Yen remains the strongest one for the day, as risk aversion dominates. Commodity currencies, Australia, New Zealand and Canadian Dollar remain the weakest. But some additional strength is seen in Euro as German Ifo business confidence came is not too badly. At the time of writing, FTSE and DAX...
PBOC Cut RRR, Injecting Most Liquidity to Market So Far This Year
Yesterday, PBOC announced a -50 bps reduction in reserve requirement ratio (RRR) for commercial banks. The move, effective from July 5, aims at easing the tightening in credit condition with the injection of about RMB 700B of liquidity to the market. The decision came in line with our assessment...
Yen Rally Continues as Trade Spat Escalates
Yen trades broadly higher today, followed by Dollar and Swiss Franc as sentiments are weighed down by escalating trade rhetorics. Nikkei closed down by -0.79% at 22339.15, after hitting session low at 22312.79. China's Shanghai composite opened higher, as lifted by PBoC's RRR cut, but turned red soon after....
OPEC/ Non-OPEC Deal Has Limited Impact. Here is Why
Oil bulls are relieved after the OPEC/ non-OPEC decision on production. At the joint statement released on June 23, the oil producers announced that they would “strive to adhere to the overall conformity level, voluntarily adjusted to 100%, from July 1 and for the rest of the year. The...
Bulls Increased Bets While Bears Cowered on USD’s Rally
USD bulls won ahead of the June FOMC meeting, as suggested in the CFTC Commitments of Traders report in the week ended June 19. Speculative long positions for USD Index (DXY) futures gained +2 267 contracts while shorts slumped -11 142 contracts, resulting in Net LENGTH of 18 072 contracts,...
Traders Turned More Bearish on Precious Metals as US Dollar Jumped
According to the CFTC Commitments of Traders report for the week ended Jun 19, net LENGTH for crude oil futures declined -14 346 contracts to 580 947. Net LENGTH for heating oil futures rose +16 653 contracts to 51 250 while that for gasoline soared +11 668 contracts to 97...
Swiss Franc and Yen Ended as Strongest, Worst of Trade War Yet to Come
The Swiss Franc and Japanese Yen ended last week as the strongest major currencies. Sentiments were hurt deeply by worries on global trade war. Over week, DOW lost -2.03%, S&P 500 lost -0.89%, DAX was down -3.31%, CAC dropped -2.08%, Nikkei lowered by -1.47%. China's Shanghai composite suffered most...
Euro Jumps on Solid PMI, Canadian Dollar Hammered by Retail Sales and CPI
Economic data and improving sentiments are the main drivers in the markets. Australian Dollar and New Zealand Dollar are so far the strongest ones today as European stocks rally. At this time of writing, FTSE is up 1.33%, DAX up 0.42% and CAC is up 0.97%. US futures also...
Sterling Rebound Short-Lived, Risk Aversion Regained Spotlight
The BoE triggered rebound in Sterling was relatively brief. Risk aversion quickly regained the spotlight in the markets. DOW extended its losing streak for the eight day and closed down -196.10 pts or -0.80% at 24461.70. S&P 500 and NASDAQ were down -0.63% and -0.88% respectively. Asian markets follow,...