How Did Stocks, Bonds and Dollar React to Trump’s Attack on Fed?
Dollar was sold off sharply on Friday but, after all, it ended the week only as the third weakest. Sterling was the worst performing one after triple data disappointment, most notably CPI. The once done-deal BoE August rate hike is now back on the table. Australia Dollar ended as...
Dollar Sharply Lower as Trump’s Reliable Ally Challenges Him on Tariffs, Canadian Dollar Jumps on Strong Data
Dollar suffers steep selloff in the early US session as WSJ reports that Senate Finance Committee Chairman Orrin Hatch sent a letter to Trump requesting him to reconsider his trade policies. And Hatch warned that GOP senators may be ready to risk a legislative confrontation with Trump if he...
Dollar Rally Capped by Trump’s Fed Trespassing, Sterling Remains Broadly Weak
Just after the Dollar index hit one year high at 95.65 overnight, it's hit down by Trump's criticism on the supposed-to-be independent Fed policies. For now, the greenback is staying as the second strongest one for the week, next to Swiss Franc. But Dollar will likely have some consolidations...
Dollar Surges as Trade War Takes Back the Stage, Pushed Further by Stellar Job Data
Dollar is trading as the strongest one today as trade spat intensifies again. For whatever reasons, the greenback has been supported by intensifying trade tension between US and other countries. Further buying is seen in Dollar in early US session after another set of stellar job data. Meanwhile Japanese...
Aussie Surges after Strong Employment Data, Focus Turns to UK Retail Sales
Australian Dollar jumps broadly today after much stronger than expected job data. But upside against Dollar is capped so far. After all, RBA is clear that it's next move is likely a hike, yet there is no strong case for a near term movement. In rather directionless trading, Yen...
Sterling Hammered after CPI, Dollar Overwhelmed by Swiss Franc and Yen
Sterling's selloff accelerates as UK CPI missed market expectations. And that lowers the chance of a should-be-done-deal August BoE hike. In the background, Brexit uncertainty is also weighing on sentiments towards the Pound. Meanwhile, Australian Dollar and Euro are trading as the second and third weakest ones. Dollar is...
Dollar Surges as Fed Powell Affirmed Policy Path, Sterling as Weak as PM May
Dollar is staying firm in Asian session today after overnight rally. Markets received Fed Chair Jerome Powell's composed and balance testimony rather well. And he basically affirmed that Fed in on track for its projected rate path. In particular, USD/JPY has already resumed recent rise and breaches 113 handle....
Dollar Rebounds as Markets Await Powell, But Swiss Franc and Kiwi Outperform
Dollar is regaining some ground as markets await Fed chair Jerome Powell's Congressional Testimony. But still, New Zealand Dollar is the strongest one today as lifted by inflation data. Swiss Franc trades as the second strongest as European indices are trading broadly in red. There are also speculations that...
New Zealand Dollar Jumps on RBNZ Inflation Reading, Australian Dollar Higher on RBA Minutes
Commodity currencies trade generally higher today. New Zealand Dollar leads the way following improvement in RBNZ's own preferred core inflation measures. Australian Dollar is also firm after RBA reaffirmed that the next move is likely a hike rather than a cut. Yen continues to trade as the weakest one...
Euro Lifted as EU Made Progress With China, Dollar Soft after Retail Sales
Dollar remains generally weak in early US session despite a mild lift from retail sales data. While the greenback and Japanese yen are competing as the weakest one, Canadian Dollar joins the race as WTI crude oil drips below 70 handle. European majors are generally firm with Euro supported...
Markets Weighed Down Slightly by Soft China Data, Dollar and Yen Dip Lower
Asian markets are weighed down slightly by a batch of soft economic data from China, but loss is limited so far. At the time of writing, China Shanghai SSE is down -0.47% and stays above 2800 key level throughout the session. Hong Kong HSI is down -0.17%. Singapore Strait...
Dollar Not Ready to Resume Up Trend Yet, Risk Appetite to Continue
Yen and Swiss Franc ended as the weakest ones last week as global stock markets ended higher. There were some jitters in risk sentiments after US announced to move on with tariffs on additional USD 200B in China imports, which come effective as soon as in September. But investors...
Dollar Retreats Mildly after Import Price Miss, Still Set to Close the Week as Strongest
Dollar is set to close as the strongest one for the week, after today's rally. Some setback is seen after import price index miss but the retreat is so far shallow. Yen is trading as one of the strongest alongside Dollar. But that's mainly because it's digesting some of...
Review of China’s June Macro Data (Inflation, FX Reserve, Trade Balance and Credit
Inflation
Headline CPI in China climbed +0.1 percentage point to +1.9% y/y in June, in line with expectations. On monthly basis, inflation contracted -0.1%, compared with consensus of a +0.1% increase. Yet, this is the smallest contraction since March this year. In June, food price registered modest recovery (+0.3% y/y...
Dollar Regaining Momentum While Risk Appetite Stays Strong, NASDAQ Hit Record High
The markets are rather calm today as supported by relatively positive investor sentiments. NASDAQ surged to new record high at 7825.67 before having a strong close at 7823.92, up 1.39%. DOW ended up 0.91% at 24924.89 while S&P 500 rose 0.87% to 2798.29. In Asia, Nikkei is having a...
Risk Appetite Unmoved by ECB Accounts, US CPI, Brexit White Paper, Nor NATO Showdown
Return of risk appetite is probably the main theme in the markets without a main theme today. There are quite a number of "high-level" events today, ECB meeting accounts, US CPI release, UK's Brexit white paper, and the NATO showdown. Plus, the continuous development of US-China trade war in...
Dollar Strong as Markets Look into US CPI
Yen was sold off sharply overnight after stronger than expected US producer price inflation data. Selling continues in Asian session as risk aversion receded. The impact of US-China trade war escalation on the markets was brief and limited. Most importantly, the China Shanghai Composite rebounded strongly and is trading...
US Crude Oil Inventory Sank to Lowest Level in 2 Years
Crude oil prices fell as US inventory slumped last week. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks dropped -7.17 mmb to 1199.73 mmb in the week ended July 6. Crude oil inventory plunged -12.63 mmb (consensus: -4.49 mmb)...
BOC Review – Raised Growth Outlook but Upbeat Business Investment Might Diminish in Coming Years
BOC delivered its fourth post-crisis rate hike in July. While the increase of +25 bps had been widely anticipated, the accompanying statement and the updated growth forecasts appear more hawkish. While raising GDP growth outlook for 2019 and 2020, BOC’s wage growth forecast remained benign. Meanwhile, it heightened its...
Dollar Marches On With NATO Showdown and US-China Trade War
Global stocks tumble as US escalated the trade war with China again today, moving on to the process to impose tariffs on additional USD 200B of Chinese goods. On the other hand, Trump is fighting allies of the US in NATO summit in Brussels. At the time of writing,...