GBP Strengthens on Conflicting BoE Survey Data, Highlighting Monetary Policy Dilemmas
Sterling rallied broadly today, driven by BoE’s Monthly Decision Maker Panel survey, which underscored a complex economic outlook that reinforces the central bank’s cautious approach to policy easing. The survey revealed a mixed picture of inflationary and deflationary pressures. Notably, 54% of businesses anticipate raising prices in response to...
Trump Trade Resurgence Boosts Bitcoin and Stocks, Dollar and Yen Maintain Strength
US financial markets basked in risk-on sentiment overnight, with S&P 500 and NASDAQ scaling new record highs. Bitcoin seized the momentum, surging past the psychologically significant $100K mark. Dubbed the "Trump Trade," optimism over President-elect Donald Trump's policies has returned in full force and is likely to persist, barring...
Dollar Shrugs Slight ADP Miss, Sterling Rises on BoE’s Gradualist Easing
Dollar is mixed as markets enter into US session, with traders digesting the slightly weaker-than-expected ADP private employment report. The re-accelerating pay growth as shown in the report might prompt some concerns among hawkish members of Fed. But the focus remains on Friday’s non-farm payroll data, the definitive input...
Aussie Weakens on Soft GDP, Markets Steady Despite South Korean Political Turmoil
Australian Dollar faced broad declines in Asian trading following Q3 GDP data that fell short of expectations, marking a continued slowdown in the economy. Despite the weakness, the data isn’t severe enough to prompt an immediate policy response from RBA, either this month or in February. The central bank’s...
Swiss Franc Rises on Inflation Stabilization, Aussie Eyes GDP Data
Swiss Franc strengthened broadly after inflation data for November indicated a modest uptick, stabilizing after months of decline. Although the annual CPI reading missed market expectations, the stabilization reduces immediate pressure on SNB to implement a significant 50bps rate cut at its upcoming policy meeting this month.
However, uncertainty still...
Greenback Holds Firm in Subdued Trading Despite Growing Expectations of December Fed Cut
Trading in the forex markets were subdued in the Asian session. Low activity is expected to persist for the rest of the day due to a light economic calendar. Dollar remains resilient, supported by expectations that the incoming US administration will favor a strong currency. While the sharp drop...
Dollar Gains Momentum after ISM Manufacturing, Euro Falters Amid French Political Crisis
Dollar's rally extended its rally, bolstered by stronger-than-expected ISM manufacturing data. The notable jump in new orders and easing prices suggest an improving outlook for the US manufacturing sector. In the background, the greenback had a head start for the week after US President-elect Donald Trump adopted a firm...
Dollar Strengthens Amid Trump’s Currency Warning and Biden’s Last Semiconductor Crackdown on China
Dollar started the week on strong footing, buoyed by a combination of technical factors and geopolitical developments. Technically, the greenback bounced after failing to break through near-term support level against Euro last week. Escalating political and trade tensions is giving further fuel to Dollar's rise.
Over the weekend, US President-elect...
Yen Rally Resumes on Tokyo CPI, Swiss GDP and Eurozone Inflation Watched
Yen resumed its broad-based rally during the Asian session, lifted by stronger-than-expected Tokyo inflation data. The accelerated inflation figures have reignited market speculation about another rate hike by BoJ as early as December. Overnight index swaps now suggest there is over 60% probability of a 25bps increase at this...
Forex Consolidates; Yen Awaits Tokyo CPI, Ethereum Eyes 3700 Resistance
The forex markets are generally staying in consolidation mode today with US on thanksgiving holiday. , and even Yen's rally is losing some momentum. Nevertheless, the Japanese currency might find some renewed life with the Tokyo CPI data in the upcoming Asian session. BoJ Governing Kazuo Ueda has recently...
Yen Strength Extends Amid Quiet Forex Markets; AUD/JPY Tests Key Levels
The forex market has turned subdued as the US Thanksgiving holiday curbs activity, but overall trends have held steady. Yen continues to outperform, supported by the ongoing decline in US and European benchmark yields, maintaining its position as the strongest currency this week so far . Euro is the...
Yen Leads Markets, Dollar Weakens With Reversal Risks
Yen is asserting dominance in today’s markets, benefiting from notable decline in US and European benchmark treasury yields. US 10-year yield, in particular, is seeing a renewed drop, which is gaining momentum alongside the weakening USD/JPY. This raises the risks that both could be reversing their rallies that began...
Yen Rebound Gains Momentum, NZD Gains on RBNZ’s Moderated Easing Outlook
Kiwi rebounded broadly during Asian session, supported by a less dovish-than-expected rate cut from RBNZ. While the 50bps reduction to 4.25% had been widely anticipated, RBNZ’s updated forecasts, which suggest a slower pace of easing in 2025, surprised markets. The central bank projects the OCR to reach 3.50% by...
Dollar Weakens as Tariff Boost Fades; FOMC Minutes and RBNZ in the Spotlight
Dollar is losing some ground as markets enter into US session, as the initial support from US President-elect Donald Trump’s tariff announcement dissipated. Although the greenback softened broadly, it is still holding onto gains against Loonie and Aussie, with traders as Trump’s tariffs are targeting Canada, China, alongside Mexico.
Market...
Trump’s Tariff Threats Weigh on CAD and AUD; Dollar and Yen Gain Ground
Dollar strengthened broadly in Asian session, especially against commodity currencies, following a bold announcement from President-elect Donald Trump. Trump pledged to impose steep tariffs on Canada, Mexico, and China to pressure them into halting fentanyl trafficking to the US.
The announcement came as markets were digesting the positive sentiment surrounding...
Dollar Stays Soft With Falling Yields and Stocks Rally
Dollar remains under pressure as the market heads into the US session, with selling momentum picks up slightly alongside a continued decline in Treasury yields. US stock futures are staging a robust rally, reflecting optimism over President-elect Donald Trump's selection of Scott Bessent as Treasury Secretary. Bessent is viewed...
Dollar Weakens Amid US Treasury Secretary Pick, But Resilience May Prevail
Dollar traded broadly lower in Asian session as markets reacted to President-elect Donald Trump’s appointment of Scott Bessent, a seasoned fund manager, as Treasury Secretary. Bessent’s stance aligns with Trump’s policies on tariffs, though his pragmatic approach has been perceived as a stabilizing factor. He advocates for tariffs to...
Euro Weakens Sharply, Sterling and Swiss Franc Also Under Pressure
Euro stole the limelight last week with a steep selloff triggered by poor activity data. This downturn has intensified the pressing need for the ECB to ease monetary policy swiftly back to neutral levels. While Euro's decline was pronounced, Sterling and the Swiss Franc are not far behind, each...
Euro and Sterling Under Fire after PMIs, Swiss Franc Reverses Gains
European majors are experiencing significant selling pressure today, with Euro leading the declines. Euro sharply depreciated as traders increased their bets on an aggressive 50 bps rate cut by ECB in December, following dismal PMI data. Market expectations for such a cut have surged to 50%, a substantial rise...
Swiss Franc and Dollar Gain as Putin Warns of Global War Escalation, Euro Awaits PMIs
Swiss Franc and US Dollar appreciated broadly today as investors sought safe-haven assets in response to escalating geopolitical risks. Gold extended its near-term rebound, while Bitcoin surged to a new record high, reflecting heightened demand for alternative stores of value.
The catalyst for this shift was a warning from Russian...