Market Overview
Greenback Falls With Risk-On Sentiment and Trump’s Softer Tone on China
Dollar’s decline accelerated as the week progressed towards the last day, weighed down by strong risk-on sentiment and investor optimism. S&P 500 closed at a new record high on Thursday, with NASDAQ and DOW poised to follow soon.
Contributing to this sentiment were remarks from US President Donald Trump at...
Yen Stabilizes in Weak Position as BoJ Rate Hike Awaited
While Yen remains the worst performer of the week so far, it has stabilized as the markets await the highly anticipated BoJ rate hike in the upcoming Asian session. Expectations for this rate move were well set by comments from BoJ Governor Kazuo Ueda last week. Risks from US...
Dollar Softness Continues as Forex Markets Tread Calm Waters
The forex markets remain unusually quiet today, with Dollar staying soft despite multiple attempts to rebound. The greenback has only managed meaningful gains against the weaker Yen and the struggling Canadian Dollar, while failing to build momentum against other major currencies. With little in the way of significant economic...
Dollar Recovery Capped by Stocks Rally, S&P 500 Ready for New Record
Despite being pressured in the past few days, Dollar remains relatively resilient, refusing to drop despite renewed selling pressure earlier today. US President Donald Trump’s tariff rhetoric is having a diminishing effect on markets, as traders shift their attention back to fundamental and intermarket dynamics. The first significant market...
Kiwi Eases as NZ CPI Backs RBNZ 50bps Cut, Dollar Unmoved by Trump’s Continuous Tariff Talks
New Zealand Dollar softened mildly today as Q4 inflation data reinforced the case for continued monetary easing by RBNZ. The central bank has ample room to swiftly bring interest rate from the current 4.25% to neutral, with inflation staying at around mid-point of 1-3% target range for the second...
Loonie Weakness Persists in Calmer Markets, AUD/CAD Challenges Key Resistance
Forex markets have settled into quieter trading as the immediate impact of US President Donald Trump’s inauguration and initial executive orders fades. While Trump’s proposed tariffs remain a significant concern, their delayed implementation suggests a more calculated and strategic approach, tied to future negotiations. This tempered stance has brought...
Loonie on a Rollercoaster on Tariff Threats, Canadian CPI Watched
Canadian Dollar endured a rough ride, heavily influenced by US President Donald Trump’s tariff rhetoric. The Loonie initially gained some ground yesterday, as Dollar weakened broadly after Trump refrained from imposing immediate tariffs during his first day in office. However, optimism was short-lived as Trump warned of 25% tariffs...
Dollar Weakened by Reports Trump Is Holding Off on New Tariffs
Dollar weakened broadly in early US session as reports from The Wall Street Journal indicated that Donald Trump, during his inauguration, will only outline his trade vision but avoid imposing new tariffs for now. While this temporarily calms market fears of immediate disruptions, the situation remains dynamic, and unexpected...
Greenback Eases Ahead of Trump’s Executive Actions, Bitcoin Takes Leads and Hits New Record
Dollar is trading slightly lower today as markets await Donald Trump’s inauguration as the 47th US President. Attention is focused on his inaugural speech, expected to confirm his policy priorities. However, the real market-moving event is likely to be the series of executive actions Trump has promised to enact...
Global Markets Look Beyond Trump’s Inauguration as Local Drivers Take the Lead
Global markets are buzzing in anticipation of Donald Trump’s inauguration on January 20, yet the latest developments suggest investors may already be looking past the immediate impact. Despite speculation surrounding Trump’s policies—particularly tariffs—various benchmarks and asset classes are charting their own directions based on localized drivers and monetary policy...
Commodity Currencies Slide as Markets Brace for Trump’s Tariff Moves
Sharp selloff in commodity currencies against Dollar is dominating market action as the US session unfolds. While broader trading remains subdued, the sudden weakness in these currencies appears tied to trader caution ahead of President-elect Donald Trump's inauguration on Monday. Concerns over tariff policies could be the main driver...
Sterling Remains Pressured as Retail Sales Round Out Weak UK Data Trio
Sterling continues to trade under pressure following a week of disappointing UK economic data, with weak December retail sales completing a trio of negative reports that also included lower-than-expected GDP growth and CPI readings. The data has reinforced market expectations that BoE would ease monetary policy in 2025, as...
Cautious Trade Dominates as Dollar Holds Steady, Yen Leads, Gold Jumps
Activity in the forex markets has turned relatively subdued today, with no clear trend emerging as traders shift into a cautious stance. With no top-tier economic data scheduled for the rest of the week, attention is turning to the impending inauguration of US President-elect Donald Trump next Monday. The...
BoJ’s Repeated Hawkish Signals Fuel Yen Rebound, Sterling Falters on Stagnant Growth Data
Yen's near term rebound gained momentum again today, supported by BOJ Governor Kazuo Ueda’s persistent messaging about a potential rate hike at next week’s policy meeting. Ueda’s repeated remarks are interpreted as laying the groundwork for markets to brace for a monetary policy shift. While recent polls as of...
Dollar Weakens on Core Inflation Relief, But Bullish Bias Holds
Dollar extended its near-term pullback in early trading after core inflation data for December came in slightly below expectations, offering a degree of relief to traders and investors. Treasury yields also retreated, with the 10-year yield falling back below the 4.7% mark.
Core CPI rose by 3.2% yoy, down from...
Yen Gains BoJ Hike Speculations, Sterling Steady after Inflation Data, Dollar Awaits CPI
Yen's recovery gained some momentum today on as speculation over an imminent BoJ rate hike. Governor Kazuo Ueda reinforced Deputy Governor Ryozo Himino’s earlier comments, suggesting that next week’s policy meeting could bring a shift in monetary policy. The unified tone from BoJ’s leadership is seen a calculated effort...
Greenback Holds Ground After Slight PPI Miss, Sterling Weakens Again as Gilt Yields Eye 5%
Dollar is holding steady against its peers in early U.S. trading, with softer-than-expected PPI report failing to trigger significant selling pressure. Market sentiment continues to shift toward the possibility that the Fed might refrain from additional rate cuts in 2025. Fed funds futures are currently pricing in less than...
Tariff Rumors Shake Markets Again, Dollar Retreats Ahead of PPI
Speculation surrounding the incoming US administration's tariff strategy continues to rattle global markets. Reports suggest that President-elect Donald Trump’s economic team is exploring a phased approach to tariffs, gradually increasing rates by 2% to 5% per month. This tactic, if adopted, would utilize executive powers under the International Emergency...
Sterling Slumps Further as UK Bond Yields Hit Multi-Decade Highs
Sterling's selloff continues today as UK government bond yields surged to new highs, underlining deep market concerns over the nation’s fiscal outlook. 10-year Gilt yield breached 4.8%, a level not seen in 17 years, while 30-year yield climbed past 5.4%, marking its highest point in 27 years.
At the core...
Sterling Slides Further as UK Fiscal Concerns Persist, UK-China Trade Efforts Fail to Reassure Markets
Sterling extended its losses at the start of the week as deepening concerns over the UK’s fiscal situation continued to dominate market sentiment. Yields on 10-year UK Gilts surged above 4.88%, inching closer to the psychologically significant 5% mark. Market participants remain skeptical about the government’s fiscal discipline, despite...