CFTC Commitments of Traders -Net Short of USD Index Futures Fell as Rising Yields Lent Support
As suggested in the CFTC Commitments of Traders report in the week ended March 9, NET SHORT of USD Index futures fell -1 216 contracts to 8 887. Speculative long positions gained +2 992 contracts while shorts were up 1 776 contracts. Concerning European currencies, NET LENGTH in EUR...
DOW, SPX and DAX Hit Records While US Yield Surged, CAD Shone
Global equities struck a strong note in ending last week, with help from fresh US stimulus and ECB's pledge to accelerate asset purchases. Yen, Dollar and Swiss Franc ended as the worst performing ones. Canadian Dollar was the strongest on the back of risk-on sentiment, while additional supported up...
Canadian Dollar Jumps on Strong Job Data, Dollar Rebounds With Yields
Dollar rebounds broadly again today as markets are unsettled by renewed strength in treasury yield. At the time of writing, US 10-year yield is back pressing 1.6 handle. DOW future is trading mildly higher, but NASDAQ futures is down -1.3%. Though, Canadian Dollar is even stronger as lifted by...
Sterling and Aussie Rise as Risk-On Sentiment is Back
Sterling and commodity currencies are back in driving seat on positive market sentiments. Nikkei rises sharply in Asian session, following another record close in DOW overnight. Treasury yields also appear to have settled in range after this week's central bank rhetorics. For now, Yen is the worst performing for...
ECB to Accelerate Asset Purchase as Rising Bond Yields Tighten Market
While leaving the monetary policy measures unchanged, the ECB indicated that it would increase asset purchases in coming months. The move is a response to the rise of bond yields which could tighten the financial conditions. On economic developments, the central bank attributed the likely contraction in 1Q21 to...
Euro Mildly Softer after ECB, But Dollar and Yen Even Weaker
Euro softens mildly after ECB announced to speed up PEPP purchases in the next quarter. But loss is relatively limited as the overall envelop was kept unchanged. Dollar and Yen are currently the worst performing one for today, on the back of risk-on sentiments. Commodity currencies are currently the...
Sentiments Approved after US 10-Yr Auction, ECB Comments on Yields Awaited
Australian Dollar leads other commodity currencies higher today on improved market sentiments. Asian stocks are trading generally higher, following the record close in DOW overnight. Investors found some comfort from the soft yet acceptable 10-year auctions. Dollar, Yen and Swiss Franc turn softer as a result. Now, focus will...
BOC More Upbeat on Economy, Hinted to Taper as Outlook Continues to Improve
As widely anticipated, the BOC left all monetary policy measures unchanged. While being more upbeat about the economic developments, the members noted that the policy rate will stay unchanged as least until inflation target of 2% is "sustainably" achieved. Meanwhile, they hinted of adjusting the size of asset purchases...
US Crude Oil Inventory Increased to Highest Level This Year
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks gained +1.32 mmb to 1283 mmb in the week ended March 5. Crude oil inventory soared +13.8 mmb (consensus: +3 mmb,) to 498.4 mmb. The increase remained large although...
Range Trading Continues as US 10-Year Auctions Awaited
The markets are rather quiet so far today with slow news flow. Major currency pairs and crosses are stuck inside yesterday's range, in consolidative trading. Other markets are also mixed, with some hope for DOW to hit new records, but other indices are weak. US consumer inflation data provides...
Dollar Recovers after Brief Retreat, More Treasury Auctions Ahead
Dollar's pull back overnight was relatively short-lived as it regains some footing in Asian session today. Sentiments stabilized with US stocks closed higher yesterday, with NASDAQ staged a strong rebound. Treasury yields also retreated mildly. The auction of USD 58B in US 3-year notes was seen as well received,...
ECB Preview – Awaiting Actions in Response to Higher Yield and Revisions on Economic Forecasts
Macroeconomic developments have changed significantly since the January ECB meeting. One of the most prominent developments is the rise in inflation expectations and bond yields. As the ECB has pledged to maintain a accommodative monetary policy, it would be of great interest to the market as to how it...
Dollar Pares Gains as Yields Retreat, Stocks Rebound
Dollar retreat broadly today as 10-year yield pares gain after failing to sustain above 1.6 handle again. NASDAQ is also set for a rebound while DOW might try to extend the record run. At the time of writing, Yen, Euro and Sterling are following as the next weakest. Australian...
Sterling Strengthening While Yen Selloff Continues
Dollar retreats mildly in Asian session today as overall market sentiments improved some what. Major Asian indices, except China, recovered notably, following DOW's rally. But weakness in US tech is keeping upside capped. Selloff in Yen and Swiss Franc, and to a lesser extend Kiwi, is still the main...
Dollar Extends Rally, Euro Shrugs Solid Investor Confidence
Dollar's rally continues today but buying is mainly centered against Euro, Swiss Franc and Kiwi. Euro is getting no support from better than expected investor confidence data. Thanks to some resilience in crosses, Sterling is following as the second strongest for now. Commodity currencies are trading mildly softer but...
Asian Markets Soften on Surging Oil Price, Dollar Firm
The Asian markets opened the week relatively mixed. Stocks gained initially on US Senate passage of the USD 1.9T stimulus bill. But sentiments are weighed down by concerns of inflation as oil prices jumped. Dollar is firm against Yen, Euro and Swiss Franc and look set to continue with...
BOC Preview: Caution over Pandemic Uncertainty While Acknowledging Better-than-Projected Growth
The BOC will leave its policy rate and the size of the QE program unchanged at this week's meeting. While there will be no press conference and updated economic projections will not be released until April, policymakers will address the upbeat economic data released in the last meeting. Yet,...
10-Yr Yield Couldn’t Break Loose from 1.5 Magnet, Dollar and Canadian Soared
Strong treasury yield continued to be a major theme last week. But for now, it seemed 10-year yield could still break loose from the "magnetic field" of S&P dividend yield at around 1.5%. Indeed, US stocks, including NASDAQ staged a strong rebound on Friday, as 10-year yield settled back...
Dollar Jumps after Strong NFP, 10-Yr Yields Breaks 1.6
Dollar rises further in early US session after much stronger than expected non-farm payroll report. 10-year yield also surges and it's now back above 1.6 handle. The greenback in currently the second strongest for the week, only overwhelmed by the oil supported Canadian Dollar. While Swiss Franc and Yen...
Yields Surged, Stocks Tumbled after Fed Powell, Dollar in Half-Hearted Rally
Fed Chair Jerome Powell's lack of concrete hint on action against rising nominal rates sent treasury yield higher, and stocks lower overnight. Dollar rode on risk aversion and jumped sharply higher. Nevertheless, the greenback's rally was concentrated against Euro, Swiss Franc and Yen only. Sterling, Canadian, and Australian are...