FOMC Minutes Revealed that Most Members Saw Current Rate Level as Appropriate
The FOMC minutes for the October meeting revealed that most members judged that the monetary easing was enough to support growth. However, they continued to see downside to the economic outlook.
In October, the members voted to cut the Fed funds rate by -25 bps to a range of 1.5-1.75%....
Dollar and Yen Rise on Concerns Over US-China Relations
Dollar and Yen are the two strongest ones today so far as investors are turning cautious regarding US-China relations. The so called phase-one trade was was supposed to be signed at the cancelled APEC summit in Chile last week. But there is no concrete news regarding the progress yet....
Sentiments Hurt as US-China Political Tensions Intensify Over Hong Kong
Yen and Swiss Franc are back in driving seats, together with Dollar. US stocks hit new record highs overnight reversed to closed lower. Asian markets follow and trade broadly lower. While there is no "concrete" good news regarding US-China trade deal, political tensions between the two super power intensified...
Sentiments Lifted as China Will Step Up Credit Support, Dollar Mixed after Housing Data
Sentiments in the markets were lifted by news that China is going to step up credit support to the economy. Commodity currencies strike a strong come back, as led by New Zealand and Australian Dollar. On the other hand, Swiss Franc and Yen are back under pressure. Sterling also...
Aussie Weak after Dovish RBA Minutes, Dollar Mixed on Trade
Australian Dollar weakens broadly today following more dovish than expected RBA minutes. New Zealand Dollar is currently the second weakest together with Swiss Franc. On the other hand, Euro, Sterling and Yen are the stronger ones. Dollar is mixed on confusing messages regarding US-China trade deal. So far, it...
RBA Minutes: Members Considered Rate Cut This Month. Disappointing Job Report Raises the Case for Further Easing
RBA’s minutes for the November meeting sent a more dovish tone than expected. At the Statement of Monetary Policy, the members noted that “the Board was mindful that rates were already very low and that each further cut brings closer the point at which other policy options come into...
Yen Rebounds on Talks of China’s Pessimism on Trade Deal
Yen rebounds strongly in early US session on talks that China is pessimistic on US trade deal. But still, at this point, Sterling remains the strongest one for today as lifted by hope of a Conservative win in the upcoming election in December. For now, Euro is also firm...
Sterling Surges, Poised to Upside Breakout as UK Election Campaign Steps Up
Risk appetite extended from last week's strong US close into Asian session. Markets cheer the "constructive" US-China trade talks while ignoring escalation in unrest in Hong Kong. Yen is currently one of the weakest together with Swiss Franc. Though, Australian Dollar is also soft among them. On the other...
AUD/NZD Ended as Top Mover after a Week of Parallel Universes
The financial markets were like in parallel universes last week. On the one hand, US stocks were boosted by trade optimism as the three major indices ended at record highs. On the other hand, Hong Kong stocks led Asian markets lower as unrest in the city continued, with no...
CFTC Commitments of Traders – Long Bets on Safe Haven Currencies Dropped amidst Optimism over Trade Deal
As suggested in the CFTC Commitments of Traders report in the week ended November 12. NET LENGTH in USD Index slid -595 contracts to 277 84. Speculative long positions fell -1 066 contracts and short positions dropped -471 contracts. Concerning European currencies, NET SHORT for EUR futures declined -3...
CFTC Commitments of Traders – NET LENGTH on Gold Declined as Traders Trimmed Bets on Both Sides
According to the CFTC Commitments of Traders report for the week ended November 12, NET LENGTH for crude oil futures gained +18 457 contracts to 424 597 for the week. Speculative long positions declined -25 944 contracts while shorts slumped -44 401 contracts. For refined oil products, NET LENGTH...
Dollar Mixed as Retail Sales Offset By Other Weak Data
Dollar is mixed for today as markets head toward weekly close. Economic data from the US are generally disappointing, but sentiments seemed to be lifted by comments regarding US-China trade deal. Global stock markets also stabilized while US equities are set to extend record run. For the week, New...
Markets Consolidate ahead of Weekly Close, Kiwi Stays Strong
Markets turn into consolidative mode today as Dollar, Yen and Swiss Franc pare back some gains. Commodity currencies, on the other hand, are generally higher. Traders are taking some profits ahead of weekly close. Nevertheless, over the week, New Zealand Dollar is the strongest ones after RBNZ's surprise hold....
US Crude Oil Stock-Build Exceeded Consensus
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks slumped -5.86 mmb to 1273.57 mmb in the week ended November 8. Crude oil inventory added +2.22 mmb to 446 mmb (consensus: +1.65 mmb). Inventory gained in 3 out...
Yen Higher Following Weakness in Yields, Euro Mixed as Germany Avoided Recession
Yen, Swiss Franc and Dollar remain the strongest ones as Asia led risk aversion continues today. Additionally, treasury yields are back under pressure with some downside acceleration after US 10-year yield lost 1.9 while German 10-year yield lost -0.3. On the other hand, Australian Dollar remains the weakest, followed...
Poor Job Data Sends Aussie Lower, Yen Jumps as Risk Aversion Continues
Australian Dollar tumbles broadly today after poor employment data, which suggests RBA is still on track for more easing. Additionally, the Aussie and Kiwi are weighed down by risk aversion in Asian markets. Hong Kong stocks lead others lower again on poor Chinese economic data, and continued unrest in...
China Data Reveal Further Downside Risks in Economy
China’s major economic data in October all missed expectations and slowed from a month ago. Growth in industrial production decelerated to +4.7% y/y, from +5.8% in September. Retail sales growth weakened to 7.2% m/m, compared with +7.8% in September. Part of the reasons can be deferred spending ahead of...
Swiss Franc and Yen Jump on Risk Aversion, Kiwi Maintains Gain
New Zealand Dollar remains the strongest one today as boosted by RBNZ's hold. But risk aversion is picking up momentum and sends Swiss Franc and Yen generally higher. Hong Kong stocks led the global markets lower again as unrest in the city continues. Neither the Hong Kong nor the...
Forex Shrugs Risk Aversion, Kiwi rebounds after RBNZ Hold
Asian stocks are broadly lower today, as lead by free fall in Hong Kong stocks. But the development is largely shrugged off by the forex markets. New Zealand dollar rebound strongly after RBNZ surprisingly stands pat today. Swiss Franc and Euro are following as second strongest. On the other...
RBNZ Unanimously Left OCR at 1%. Rate Cuts Next Yet Still Likely
RBNZ left the OCR unchanged at 1% in October. The members acknowledged that inflation stayed below the midpoint of the 2% target and inflation forecasts have declined. Yet, they believe previous monetary easing should lift the price level back to target. Meanwhile, they noted that weakness in exchange rate...