Euro Falls Against Commodity Currencies, Dollar Mixed Despite Pull Back in Yields
Selloff in Euro against commodity currencies appear to be a main theme today, in otherwise mixed markets. Dollar seems not too bothered by the pull back in treasury yields overnight and stays generally inside last week's range. Sterling is struggling to extend gain despite staying as the strongest one...
US Crude Inventory Continued to Trim, while Petroleum Stockpile Gained Further
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks sank -9.43 mmb to 1334.27 mmb in the week ended January 8. Crude oil inventory dropped -3.25 mmb (consensus: -2.27 mmb) to 482.21 mmb. Stockpile decreased in 4 out...
Sterling Strong in Mixed Markets, Dollar Stabilizes
Sterling strength continues today, in the otherwise mixed markets. UK Prime Minister Boris Johnson told the parliament that restrictions measures are already "starting to have an effect in many parts of the country". Canadian Dollar is following as second strongest for today, lifted slightly by upside acceleration in oil...
CAD to Gain Further On Risk Appetite and Higher Crude Oil Price, Upside Limited by BOC Actions
Similar to Australian dollar, Canadian dollar this year should continue to benefit from broad-based USD weakness, global recovery, and rebound in commodity, in particular crude oil, prices. However, with the US as its largest trading partner, BOC should track the Fed’s monetary policy closely, and avoid excessive appreciation of...
Dollar Reversed as Fed Officials Talk Down Tapering, Sterling Strong
Dollar dropped notably overnight and stays weak in Asian session. Some Fed officials toned down the talk of tapering the asset purchase program, or any monetary stimulus removal. Sterling, on the other hand, is extending this week's rally, after BoE talked down negative interest rates. The forex markets are...
Sterling Rises on BoE Comments, Dollar Lost Momentum
Sterling surges broadly today after BoE Governor criticized that negative interest rates have a lot of issues. Commodity currencies are currently the next strongest, reversing some of this week's pull back. On the other hand, Dollar is now the weakest one for the day, as the near term recovery...
Dollar Firm on Upbeat Fedspeaks, at a Near Term Juncture
Dollar remains firm after some Fed officials' upbeat talks about the second half but buying appears to be slowing slightly in Asian session. Gold is also setting in range for now, reflecting some hesitation to push the greenback further higher. Yen and commodity currencies turned mixed, together with the...
Dollar Rises Further, Gold Recovers, Stocks Pare Recent Gains
Dollar's rebound extends further today and remains firm entering into US session. Yen is following as the second strongest. Markets are paring back recent strong risk-on sentiment, on concern of near term deterioration in coronavirus spread and lockdowns. Commodity currencies are generally weakest for now, as led by Australian...
China’s Inflation Surprised to Upside in December. Outlook Moderates amidst Fall in Pork Price
China’s inflation surprised to the upside in December. Thanks to food price, headline CPI improved to +0.2% y/y in December, compared to deflation of -0.5% a month ago. Food inflation rebounded to +1.2% y/y, after contracting -2% a month ago, as pork price deflation narrowed to -1.3% from November’s...
Dollar Continues to Rebound, Coronavirus Worries Might be Coming Back
Dollar trades generally higher today as rebound continues. Yen and Swiss Franc are following as the next strongest so far. Commodity currencies are generally lower as led by Australian Dollar. The picture might imply risk aversion but there is no clear selloff in Asian markets. At the time of...
Dollar Relatively Resilient in Strong Risk-on Market, Setting the Base for a Rebound?
Global investors were all in risk seeking mode in the first full week of 2021. That came despite all the headlines of surges in coronavirus infection and death, return to strict lockdowns, chaos in Washington and Joe Biden's certification as US President-Elect. Dollar didn't perform too well but there...
CFTC Commitments of Traders – USD Started 2021 with More Selling
As suggested in the CFTC Commitments of Traders report in the week ended January 5, NET SHORT of USD Index futures added +395 contracts to 14 952. Speculative long positions climbed higher, by +279 contracts, and short positions increased +788 contracts. Concerning European currencies, NET LENGTH in EUR futures...
CFTC Commitments of Traders – Gold and Silver Prices Corrected Sharply on Profit-taking
According to the CFTC Commitments of Traders report for the week ended January 5, NET LENGTH for crude oil futures gained +6 918 contracts to 518 649 for the week. Speculative long position jumped +28 438 contracts, while shorts rose +21 520 contracts. For refined oil products, NET LENGTH...
Dollar Weakens Against on Job Contraction, Downside Limited So Far
Dollar appears to be turning weaker again after non-farm payroll report showed the first contraction since April. Euro is currently following as second weakest for the than, than Canadian, which was also weighed down by employment data. On the other hand, Sterling is starting to reverse some of this...
Dollar Recovers Despite Strong Risk-on Markets, More Rebound after NFP?
Asian markets are staying in full risk on mode, except China, following the record runs in US overnight. However, this time, Dollar is not facing much selling pressure, but recovered instead. The reflation trade and strong rally in treasury yield might finally start to give the greenback a floor....
Dollar Recovering But No Follow Through Buying Seen Yet
Dollar extends recovery in European but there appears to be no follow through buying so far. It remains one of the weakest for the week, together with Yen and Sterling. Australian and New Zealand Dollars are paring some of this week's gains too. The US Senate and House certified...
Dollar Down Trend Continues as DOW Hit Record, Yen Weaker on Yields
Dollar is recovering mildly today but remains one of the weakest for the week, together with Yen and Sterling. Solid risk appetite, with DOW closing strongly at new record overnight, is keeping the greenback and Yen pressured. Yen appears to be slightly weaker with the sharp rally in treasury...
US Crude Inventory Declined, While Petroleum Stockpiles Soared
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks fell -1.66 mmb to 1343.7 mmb in the week ended January 1. Crude oil inventory fell -8.01 mmb (consensus: -2.13 mmb) to 485.46 mmb. Stockpile decreased in ALL 5...
Focus Turns to Yen Selling as Treasury Yields Surge
Yen selling takes center stage today, following strong rise in global treasury yields. In particular, US 10-year yield is trading at 0.99 at the time of writing, after hitting 1.037 earlier. Dollar remains generally pressured, and even the recovery against Yen is weak. The surprised contraction in ADP employment...
Aussie to Gain Further from Global Reflation Theme, Limited Impact from China’s Boycott
The global reflation theme of 2021 should continue to support AUDUSD. With the cash rate at the effective lower bound, RBA also extended asset purchases worth of AUD100B until mid-2021. Yet, it appears that there is little the central bank can do to curb the currency strength. Risks from...