Market Overview
Yen Outperforms as Investors Turn Defensive, Sterling’s Downward Spiral Persists
While Sterling continues to be the market's primary focus as it faces heavy losses, Japanese Yen is quietly staging a modest, but broad-based recovery. However, Yen’s rally appears driven more by position adjustments ahead of tomorrow’s US non-farm payrolls report, as risk sentiment has across markets has turned more...
Sterling Tumbles Amid UK Bond Selloff, Dollar Backed by Resilient Data
Sterling plunged across the board as the sharp selloff in UK government bonds sent shockwaves through financial markets. Yields on 10-year gilts surged to their highest levels since August 2008, while 30-year yields reached a 26-year high. These developments have reignited concerns about the UK’s fiscal health and are...
Dollar Soars and Yields Spike Fuels on Talk of Trump’s Emergency Tariffs
Volatility soared across markets today as reports of emergency trade measures by President-elect Donald Trump overshadowed the day’s economic data. According to CNN, which cited four unnamed sources, Trump is weighing the option of declaring a national economic emergency to justify widespread tariffs on all trade partners, including allies...
Dollar Regains Ground Ahead of FOMC Minutes, Aussie Weakens on RBA Cut Prospects
Dollar regained some traction overnight, supported by strong services sector data that bolstered expectations for Fed to hold interest rates steady this month. Fed fund futures now imply a 95% probability of no rate cut in January, up from 90% last week. The upbeat economic performance placed moderate downward...
Swiss Franc Under Pressure as Deflation Risks Spur Speculation of Aggressive SNB Easing
Swiss Franc weakened across the board today after inflation data revealed a reversal in annual CPI back 0.6% in December. This marks the fourth consecutive month of deflationary pressure, as monthly CPI continues to slide. With inflation well below 1% for the past four months, concerns over a return...
Dollar Struggles on Trade Policy Ambiguity, Yen on Watch as USD/JPY Approaches 160
Dollar remains under some pressure as markets digest conflicting signals about the trade policy direction of the incoming Trump administration. President-elect Donald Trump dismissed media reports suggesting a sector-specific tariff plan as "fake news" but provided no further clarification. The lack of concrete details leaves markets grappling with uncertainty,...
Dollar Falls as Trump Considers Sector-Specific Tariffs Over Blanket Approach
Dollar weakened significantly, while stock futures rebounded, amid reports suggesting that the incoming Trump administration may scale back its plans for sweeping tariffs. According to The Washington Post, discussions among President-elect Donald Trump’s aides now lean toward imposing tariffs only on critical sectors tied to national or economic security,...
Yen Weakens Despite Risk-Off Sentiment,Jobs and Inflation Data to Drive Markets Ahead
Yen struggles today even as risk aversion set the tone across Asian markets. Nikkei extended its retreat after briefly breaching 40k psychological level last week, as the rally proved unsustainable for investors. Adding to Yen's woes, December PMI Services data highlighted only marginal growth, failing to provide a meaningful...
Dollar Starts Strong vs Europe, Sets Sights on Yen and Commodity Currencies Next
Dollar Index started the new year with a pronounced surge. Sterling, Euro, and Swiss Franc bore the brunt of this strength, reflecting the sluggish economic outlook in Europe and ongoing concerns about the impact of new US tariffs. Despite these gains, Dollar's performance against other currencies, including Yen and...
Manufacturing Stabilization Supports Dollar, European Struggle Continues
Dollar strengthened modestly following the latest ISM Manufacturing PMI, which indicated some stabilization in the US manufacturing sector toward the end of 2024. Despite the improvement, the sector continues to face challenges, with half of its industries still contracting.
The ISM report did little to shift expectations that Fed will...
Euro and Pound Struggle Amid Energy Price Shock and US Trade Threats
European currencies remain on the defensive as the new trading year unfolds, with Euro struggling near its lowest level against Dollar since 2022 and Sterling hovering close to a nine-month low. Dollar, while firm, is holding steady in narrow ranges against Yen and commodity-linked currencies, with traders awaiting fresh...
Sterling Leads European Losses as Economic Weakness and Trade Risks Mount
Sterling to leads declines among European currencies, with its selloff accelerating as US markets open. Downward revisions to December’s PMI manufacturing data reaffirm the grim economic outlook for both Eurozone and UK. While these revisions offered no new surprises, they underline the widespread challenges confronting major European economies. Weak...
Markets Poised for High-Stakes January Amid Fed and Trump Policy Shifts
As global markets return from the New Year holiday, trading remains subdued with light activity expected until next week when full operations resume. Today’s focus will be on Eurozone and UK PMI manufacturing finals alongside US jobless claims, while tomorrow’s US ISM Manufacturing Index could provide an early glimpse...
European Majors Dip in Holiday Calm, China’s PMIs Next
The forex markets remain subdued as traders maintain a cautious stance ahead of the New Year. European major are notably weaker, with Swiss Franc leading the declines. Euro is also under pressure, while Sterling has shown resilience, managing to avoid sharper losses.
Meanwhile, Yen has staged a modest recovery, supported...
Commodity Currencies Recover as Markets Eye China Data, NZD/USD Presses Key Fibonacci Level
Commodity currencies are starting the week with a modest recovery as Aussie, Kiwi, and Loonie attempt to pare steep losses from earlier in the month. Gains remain limited in the subdued holiday trading environment, but these currencies could see further upside if China’s NBS PMIs due tomorrow deliver an...
Euro Finds Mild Strength Amid German Bond Selloff, Aussie Dips on China Trade Concerns
Euro is having a modest rebound as markets enter the final US session of the holiday week, supported by a notable rise in Germany’s 10-year benchmark yield. Investors dumped German bonds after President Frank-Walter Steinmeier dissolved the lower house of parliament, paving the way for snap elections on February...
Yen Slides on BoJ Caution and Soft Inflation, Verbal Intervention Curbs Losses
Yen saw broad declines during Asian session, briefly falling below 158 against Dollar, but the selloff was quickly mitigated by verbal intervention, as least partially.
The decline was triggered by weaker-than-expected Tokyo inflation data. Stripping out energy and food prices, core-core inflation remained relatively stable, signaling limited urgency for BoJ...
Dollar Firm Despite Durable Order Miss, Aussie Awaits RBA Minutes
Dollar edged higher in subdued holiday trading, maintaining its recent strength but staying within a narrow range below last week’s highs against major currencies. Markets largely brushed aside the disappointing US durable goods orders data, as the series is known for its volatility. Moreover, traders are prioritizing labor market...
Dollar Holds Ground Amid Quiet Holiday Forex Markets
As markets wind down for the year-end holiday period, forex trading activity turns subdued, with limited momentum across major pairs. Dollar, while maintaining its position as the strongest currency of the month, is facing challenges in decisively breaking last month’s highs against European majors. However, the greenback still made...
Dollar to Pause for Consolidation After Failing to Break Euro Resistance Post-Fed
The financial markets were jolted by Fed’s hawkish rate cut last week, sending ripples across stocks, bonds, currencies, precious metals, and even cryptocurrencies. Fed’s indication of prolonged restrictive monetary policy fueled risk aversion, pushing Dollar to end the week as the strongest performer in the currency markets, supported by...