UK PM May Rocks Sterling’s Boat, Swiss Franc Pressured on Risk Appetite and Yields
Sterling suffered a lot of volatility today. It surged on stronger than expected consumer inflation data, but then reversed on news that UK Prime Minister Theresa May's rejection of EU's Irish border proposal. The Pound sort of stabilized then as markets await what May is going to say exactly...
Yen Dives on Strong Rally in US Treasury Yields, Trade War Ignored
Trade war escalations continue to be ignored by the markets in general. Dollar and Yen are staying as the weakest ones today. In particular, Yen is pressured additionally by sharp rally in US treasury yields over night. BoJ's announcement to stand pat on monetary policy triggered little reactions to...
Business Back to Usual after Trade War Escalation, Show Time for Euro or Aussie?
This time, the escalation of US-China trade war is largely ignored by the financial markets. There were just some very brief knee jerk reaction in stock and the currency markets. Yen and Dollar are both back under pressure after initial rebound. On the other hand, Australian Dollar looks immune...
US-China Trade War Escalated with New Round of Tariffs Formalized, But Market Reactions Muted
The new round of tariffs on China's imports to the US was finally formalized. Dollar got a brief lift but there was no further buying. The impacts on the markets quick faded and what's next will depend on China's counter-measures, which were already spelled out long ago. In the...
Dollar and Yen Back Under Pressure as Tariffs Rumor Hasn’t Turned into Reality Yet
Dollar and Yen are back under selling pressure today. In particular, USD/CHF and GBP/JPY take the lead in resuming recent moves. GBP/USD is following closely with eye on 1.3142 minor resistance. Both currencies received no special lift from news that Trump is going to impose new tariffs on China....
Forex Markets Range Bound Despite Risk of US-China Trade War Escalation
The forex markets are trading steadily today, as another week starts as usual. Major pairs and crosses are so far still bounded in Friday's range. It seems that traders took the news regarding escalation in US-China trade war rather lightly. Or, it's actually widely expected that no matter his...
Sterling Strongest as Brexit Deal Looks Relatively More Certain in a Chained Erratic World
It was another typical week with market moving headlines flying around. Being two highly anticipated non-events, BoE and ECB didn't disappoint investors by giving nothing new. On the other hand, there was a deep sense of nervousness ahead of Turkish central bank rate decision. The CBRT brought investors back...
Dollar Ignores Mixed Data and Recovers, Digesting This Week’s Losses
As the week is heading towards the close, Dollar is trying to pare back some of the losses over the few days. Mixed economic from the US are ignored by the markets. Nonetheless, the greenback is outshone slightly by the Swiss Franc, which is so far to strongest for...
Dollar and Yen Stay Generally Soft, More Downside Likely in Near Term
After much volatility this week, Yen and Dollar are staying as the weakest one for the week. Receding concerns over US-China trade war boosted risk appetite in the US and Asia in general. It seems that Trump's administration and Republicans are feeling heavy pressure from business to stop any...
Fresh Dollar Selling after Core CPI Miss, ECB & BoE Stand Pat While CBRT Hikes
Dollar has been relatively today and risks of escalation in trade war diminished. Deeper selling is seen after inflation data showed larger than expected fall in core CPI in August. Though, the greenback is currently underperformed by Yen due to easing risk aversion. In addition to trade optimism, Turkish...
US & China to Restart Trade Talks, Aussie & Stocks Boosted But Investors Showed No Commitment Yet
Risk appetite was given a strong boost overnight on news that US and China were going to re-start trade talks before now round of tariffs take effect. The news was further confirmed by White House economic advisor Larry Kudlow after the bell. Australian Dollar surged sharply on the news...
Dollar Dips as PPI Fell for the First Time in 1.5 Years, But Loss Limited
Dollar dips slightly against the Japanese Yen in early US session after weaker than expected inflation data. But loss is so far limited. And, the forex markets continue to lack a general, committed direction. Yen is trading as the strongest one for today so far, but upside is limited...
Multiple Factors in Play as Currencies Await Clearer Directions
The forex markets are relatively quiet in range today as multiple factors are having conflicting impacts. Asian equities continue to diverge from the US stocks, as weighed down by trade worries. While Yen is mildly firmer today, it's the second weakest for the week, following Swiss Franc. Strengthen in...
BOE Preview- Upbeat about Recent Economic Developments, but Cautious over Brexit
Following the August rate hike, BOE would likely keeps its powder dry at least until the Brexit Withdrawal deal is finalized. Macroeconomic indicators released since the last meeting contain both upside and downside surprises. Yet, the overall developments should keep BOE’s policy path, rate hike at “a gradual pace...
Dollar Surges as US-China Tensions Back in Spotlight, Sterling Rally Lost Steam
Market sentiments seem to be hurt by news that China is set to seek WTO backing next week to slap sanctions on the US. The sanctions would be for non-compliance with a WTO ruling over US dumping duties, which China won in 2016. The case was then confirmed in...
Sterling Strong on Brexit Optimism, Look into Job Data for Further Strength
Yen and Dollar are trading as the weakest ones in Asian session as risk aversion receded. In particular, Nikkei rebounds over 1% as concerns eased about last week's typhoon and earthquake. Canadian Dollar is the strongest one at the time of writing, followed by Australian Dollar and Sterling. But...
Strong Chinese Inflation Mainly Driven by Food Price
China’s headline CPI rose to a 6-month high of +2.3% y/y in August, up from +2.1% a month ago. However, the increase almost entirely came from food prices which jumped to +1.7%, from +0.5% in the prior month. Taking a close look at food inflation, deflation in pork price...
Swiss Franc Dives on Easing Italian Budget Worries, Franc Crosses Could be Reversing
Swiss Franc tumbles broadly today as easing concerns over Italy's budget narrows Italian-German yield spread notably. Italy Economy Minister Giovanni Tria's comments over the weekend were well received by the markets. Euro also strengthens broadly, except versus Australian Dollar and Sterling. Aussie is merely in consolidation, digesting recent steep,...
Yen Mildly Higher as Asian Markets Weighed Down by Trade Tension, ECB to Highlight the Week ahead
Yen opened the week mildly higher as Asian markets are generally soft on risk aversion, after Trump warned of tariffs on additional USD 267B in Chinese imports on Friday. However, Nikkei is rather immured from trade threats for today, despite Japan being named the next target. But after all,...
ECB to Affirm QE Reduction from October and Downgrade Inflation Forecasts
While it has been widely anticipated that this week’s ECB meeting would be non-eventful, it is closely watched. We expect the central bank to reaffirm that the monthly asset purchases would be halved in size (from 30B euro to 15B euro) from October to December. There is chance that...