Dollar Mildly Higher after Solid Data but Upside Limited, Franc Shrugs off SNB
Dollar strengthens mildly in early US session after some solid economic data. But gain for the greenback is so far limited. While Dollar follow Yen as the second strongest major currency for today, it's still down again all but Aussie and Loonie for the week. US President Donald Trump...
SNB Warned Of Franc Appreciation Against US Dollar, Kept Commitment To Intervene
As widely anticipated, the SNB kept the sight deposit rate unchanged at -0.75%, while the target range for the three-month Libor stayed at between –1.25% and –0.25%. Again, the SNB maintained the commitment to intervene the FX market when needed, reiterating that it would 'remain active in the foreign...
Trade War Theme Dominates Markets, Dollar Stays Weak
Trade war continued to be the main theme in the financial markets. In particular, investors are getting increasing concerned with the reported USD 40b tariffs on Chinese goods by the US. DOW closed -1.0% lower overnight to 24758.12. S&P 500 was down -0.57% while NASDAQ lost -0.19%. In particular,...
China’s February Economic Data Beat Expectations
China's economic data beat expectations in February. Headline CPI improved to +29% y/y, beating expectations of +2.5%, from January's +1.5%. On the economic activity barometers, industrial production grew +7.2% y/y in February, exceeding expectations of +6.3% and January's +6.2%. Urban fixed asset investments expanded +7.9% y/y in the first...
Dollar Tumbles as Trump Preparing for Full Blown Trade War with China
Global markets tumbled on concern that US President Donald Trump is finally starting the steps towards a full blown trade war with China. DOW ended down -0.68%, or -171.58 pts at 25007.03. S&P 500 also lost -0.64%, or -17.71 pts to 2765.31. NASDAQ, which reached a new record high...
Dollar Selloff Restarts as CPI Just Met Expectation, Trump Fired Tillerson
Dollar suffers broad based selling in early US session as in-line with expectation CPI data is a relieve to market participants. Additional, the greenback is weighed down by political turmoil in the White House. Headline CPI accelerated to 2.2% yoy in February, up from 2.1% yoy and met expectation....
Forex Markets Indecisive, US CPI Awaited
Movements in the forex markets are not too decisive for the moment. Sterling made a bull run yesterday but there was no follow through buying. GBP/JPY is staying below 1.3929 near term resistance despite the rally attempt. GBP/JP's recovery since last week's low at 144.97 is also looking corrective....
Sterling Soars as UK Reported to be Close to Brexit Transition Deal
Sterling jumps broadly after Reuters reported that UK Junior Brexit Minister Robin Walker said it's very close to transition deal with the EU. But so far, no detail is reported yet. Meanwhile, Australian Dollar remains one of the strongest one today, together with the Japanese yen. Canadian Dollar is...
Australian Dollar Lifted by Risk Appetite and Steel Tariff Exemption
Australian Dollar and New Zealand Dollar jump broadly as another week starts in full risk-on mode. Japanese Nikkei opened sharply higher and is trading up 1.4% at the time of writing. Hong Kong HSI is also up close to 1.5%. That followed the strong 1.77% rise in DOW on...
Stocks Survived Trump’s Tariffs, Boosted by Perfect NFP, Commodity Currencies Came Back
The stock markets in the US ended the week up solidly as boosted by the "perfect" job report as seen by investors. Worries over trade wars also receded as US President Donald Trump has backed down on his steel and aluminum tariff even on the day of its arrival....
Dollar Fails to Ride on Stellar 313k NFP Growth, Sluggish Wage Drags
Despite stellar report of job growth, Dollar fails to secure upside momentum so far due to sluggish wage growth. Non-farm payrolls report showed 313k growth in February, much better than expectation of 205k. Prior month's figure was also revised up from 200k to 239k. Unemployment rate was unchanged at...
Dollar Survived Event Risks, Strong as Focus Turns to Non-Farm Payrolls
The greenback emerged as a winner after most of the the event risks this week and is staying firm in Asian session. In particular, Euro's selloff after just slightly less dovish than expected ECB provides much support to the Dollar. And the greenback paid little reaction while US President...
ECB Surprisingly Removed Easing Bias, Draghi Downplayed The Implication On Future Policy
Surprising to most market participants, ECB dropped the easing bias in the forward guidance. While this had initially sent the euro slightly higher, it reversed as President Mario Draghi reinforced that the act was 'backward looking' and would not affect future monetary decision making. Policymakers remained confident over the...
Euro Struggles to Gain as ECB Draghi Talks Down Even Tiny Step of Exit
Euro is initially short up as ECB turned a bit less dovish in the statement after keeping monetary policy unchanged. However, the common currency cannot extend gains as there is no follow through buying. More importantly, ECB President Mario Draghi tries to tone down the significance of the change...
Euro Pares Gains ahead of ECB, Canadian Dollar Rebounds on Tariff Exclusion
The financial markets show that investors are well prepared for the steel and aluminum tariff by the US. Dow closed down just -0.33% overnight, at 24801.36. 10 year yield gained 0.006 to 2.883, staying in near term sideway consolidation. Nikkei is trading up 0.5% at the time of writing...
BOC Left Rates On Hold, More Concerned About US Trade Policy
As widely anticipated, BOC left the policy rate unchanged at 1.25% in March. The accompanying statement was more cautious than the previous one, over the trade outlook. Policymakers suggested that 'trade policy developments are an important and growing source of uncertainty for the global and Canadian outlooks', in addition...
Dollar Attempting to Rebound as ADP Job Beat Expectation, But Momentum Weak
Dollar is trying to regain some ground in early US session after better than expected job data. But momentum of the greenback is so far very week. Dollar suffered some selling on news of White House top economic advisor Gary Cohn's resignation, due to his opposition to President Donald...
Dollar Lower on Gary Cohn Resignation, Stocks Shrugged Off
Dollar is broadly pressured on news of White House economic advisor Gary Cohn's resignation. The dollar index dipped to as low as 89.42 and staying below 90 handle. EUR/USD is staying comfortably back above 1.24 and is set to have a take on 1.2555 key resistance. Meanwhile, USD/JPY might...
Risk Appetite Returns as EU’s Retaliatory Tariff Proposal Would Force Trump to Fold His Cards
Kiwi and Aussie are leading the way higher in the currency markets as risk appetite returns. On the other hand, Yen and Dollar are trading as the weakest ones today. Markets are increasing getting convinced that US President Donald Trump will back off from his steel and aluminum tariffs....
Trump Said He Won’t Back Down on Tariffs, But Markets Bet He Will
Market sentiments improved as some considered US President Donald Trump's threat of trade war is merely a "political show". And pressures from the Republicans and business executives will eventually force him to back down. DOW closed up 336.7 pts or 1.37% at 24874.76. S&P 500 also rebounded 29.69 pts...