Aussie Dropped as RBA Affirmed that 2022 Rate Hike is Unlikely
RBA Governor Philip Lowe downplayed the likelihood of a rate hike next year at a speech today. Besides reiterating that Australian inflation has been less severe than other economies, he noted that inflation is the the only factor leading to a rate hike. Aussie dropped after his comments.
Lowe noted...
Euro Selloff Intensified on Dovish Lagarde, Could EUR/USD Defend 1.13?
Euro tumbled broadly overnight, riding on dovish comments from ECB President Christine Lagarde. In short, Lagarde continued to talk down the need of early stimulus withdrawal and warned of the hurt to recovery for doing so. Swiss Franc is currently the second weakest, followed by Yen. On the other...
Aussie Jumps With Risk Appetite, Dollar Continues to Retreat
Australian Dollar leads other commodity currencies higher today, as supported by solid risk appetite. US futures indicate a much higher open and extended rally could push major indices to new record highs later this week. Dollar and Euro are currently the weakest ones for the day, followed by Yen....
China’s Economic Outlook Remains Dismal Despite Some Recovery in October
The latest of data for October revealed fragility of China's economic recovery. Although growth of both industrial production and retail sales beat consensus, the momentum appears weak. Property developments would continued to be hampered by government's erratic change in policy and debt problems in the sector, hurting overall fixed...
Dollar Retreats Mildly in Asian Session, Yen Lower after GDP
Dollar retreats mildly in quiet Asian session today, but loss is limited. Some consolidations will likely be seen and further rally in the greenback is still likely to follow. Yen is also slightly softer after worse than expected GDP data. On the other hand, Swiss Franc and Euro are...
Dollar Surges as Markets Added to Bets on June Fed Hike
Traders added to the bet of a June rate hike by Fed after stronger consumer inflation reading. Dollar surged across the board with Dollar index taking out an important fibonacci level. Benchmark currency yields staged a strong rebound. But stocks were very resilient despite intensify speculation of an early...
Dollar Digesting Gains, But Remains Strongest for the Week
Overall, trading in the forex market is rather subdued today. Dollar is retreating mildly but remains the strongest one for the week. Yen remains the distant second, while Sterling is third. On the other hand, Australian Dollar is the weakest one, followed closely by New Zealand Dollar. Euro and...
Dollar Extending Broad Based Rally in Quiet Trading
Dollar's broad based rally continues in Asian session today and looks set to have a strong close for the week. Talking about weekly performance, Yen is following the greenback as the next strongest. New Zealand Dollar and Australian Dollar are competing for the worst performing spot. European majors are...
Canadian Dollar Accelerates Down on Weakening Oil, Dollar Staying Strong
Selloff in Canadian Dollar gathers pace today as WTI oil price is quickly heading back towards 80 handle. Other commodity currencies are also weak, with Aussie weighed down by poor job data. On the other hand, Dollar is staying firm without clear sign of loss momentum yet. Yen is...
Rate Hike Speculations Heighten as Eurozone’s Inflation Accelerates Further
The latest ECB bulletin, European Commission's latest inflation projections and the preliminary inflation data for October rekindled ECB's rate hike speculations.
At the ECB bulletin, policymakers acknowledged that strong inflation proves more persistent than previously anticipated. Yet, they expected that it would fade next year. As noted in the report,...
Aussie Tumbles after Job Data, Dollar Extending Rally
Dollar stays generally firm in Asian session, following the post CPI rally overnight. Yen is some what helped by the selloff in stock markets despite rebound in US yields, and remains firm except versus the greenback. On the other hand, Australian Dollar tumbles sharply following much worse than expected...
Dollar Rises as US CPI Jumped Sharply Again
Dollar rises sharply in early US session after much stronger than expected consumer inflation data, which hit multi-decade high. For now, New Zealand Dollar is the worst performer today, followed by Sterling and then Euro. Yen is retreating against the greenback but stays steady against others.
Technically, despite notable rally,...
Yen Staying in Driving Seat With Falling Yields and Mild Risk-Off Sentiment
Falling global yields and mild risk off sentiment continue to boost Japanese Yen. On the other hand, Australian Dollar is leading other commodity currencies lower. But the forex markets are mixed elsewhere for now. Dollar and European majors are stuck in near term ranges against each other. Eyes will...
Gold Remains Firm in Near-term as Central Banks Downplayed Rate Hike Expectations
Gold price consolidates at the highest level in 2 months. Its recent rally has been driven by major banks’ attempt to tame rate hike expectations. We expect its strength to remain in the near-term. However, elevated inflation would eventually force central banks to reduce monetary stimulus and increase the...
Euro Shrugs Improve German Sentiment, Yen Stays Firm
Yen stays general firm after earlier rally today, and Dollar is following. Euro shrugs off better than expected German economic sentiment data. Sterling and Swiss Franc are mixed. Australian and New Zealand Dollar are currently the weakest. Gold is firm but there is no follow through buying through 1833.79...
Yen Resumes Rally, Gold Eyeing Key Resistance
Yen's rally resumes today while overall market sentiments are mixed. Asian stocks are treading water but US benchmark yield takes another dive. Swiss Franc is following as the second strongest for now. On the other hand, commodity currencies are trading broadly lower, as led by Aussie. Euro and Sterling...
Euro Supported by Improving Investor Confidence; USD, JPY and CHF Mildly Lower
Dollar, Yen and Swiss Franc turned slightly weaker in quiet markets today. Euro is supported by better than expected investor sentiment data, while Sterling also recovers. New Zealand Dollar is also trading higher but Australian and Canadian Dollar are lagging behind. Gold is back above 1800 handle but has...
China’s Trader Surplus Soared to Record High. 32 countries Scrapped Preferential Treatment amidst China’s Twisting of Trade Rules
China’s trade surplus soared to a record high of US$84.54B in October. Exports rose +27.1% y/y in October, down from +28.1% a month ago but exceeded consensus of +22.8%. Imports accelerated to +20.6% y/y from +17.6% in September. This, however, missed consensus of +26.2%.
Concerning exports, shipment to EU jumped...
Yen Retreating in Quite Markets, But More Upside Still Likely
The financial markets are rather quiet today. Commodity currencies are paring back some of last week's losses while Yen is retreating. But there is no change in the overall outlook, with the decline in Yen crosses more likely to continue than not. Trading could remain subdued first in European...
CFTC Commitments of Traders – Profit Taking Continued in Energy Futures
According to the CFTC Commitments of Traders report for the week ended November 2, NET LENGTH of crude oil futures dropped -4 425 contracts to 419 293. Speculative longs dropped -4 425 contracts while shorts gained +2 885 contracts. For refined oil products, NET LENGTH for heating oil dropped...