AUDNZD’s Rally on Yield Differential Looks Overextended
Recent strength in Australian dollar has sent AUDNZD to the highest level in 2 years. Notwithstanding the second wave of coronavirus outbreak, and the renewed lockdown measures, in Victoria, Aussie has remained firm. While all major currencies have appreciated in light of the broad-based USD weakness, AUD is the...
Yen Rebound Continues While Dollar Looks Vulnerable
Yen's rebound continues in relatively quiet trading in Asia. Risk aversion is not apparent as major indices outside of Japan are all in slight black. Instead, Yen traders could be reversing recent shorts as treasury yields pull back. Staying in the currency markets, New Zealand Dollar remains the worst...
Yen Rebounds as Treasury Yields Retreat, Dollar Stays Pressured in Range
Yen rises broadly today as global treasury yields appear to be turning south. In particular, US 10-year yield is back below 0.7 handle in pre-markets. Dollar is pressured but holds on to recently established range. But overall markets are mixed with major European indices bounded in tight range. Australian...
Euro Mildly Higher in Mixed Markets, Kiwi Down as Election Postponed
Euro strengthens mildly in generally mixed Asian markets today. There is no clear direction as Japan stocks diverge from others while gold and oil are rangebound. Canadian and Australian Dollar are following as the next strongest but movements are limited. Yen and Dollar are trading with an undertone. But...
CFTC Commitments of Traders – Bets on Gold and Silver Futures Trimmed as Prices Pulled Back after Rally
According to the CFTC Commitments of Traders report for the week ended August 11, NET LENGTH for crude oil futures plunged -15 331 contracts to 520 935 for the week. Speculative long position declined -10 925 contracts, while shorts added +4 406. For refined oil products, NET LENGTH for...
CFTC Commitments of Traders – Trades on USD Index Futures Continued to Shrank as US Real Yields Stay Negative
As suggested in the CFTC Commitments of Traders report in the week ended August 11, NET SHORT for USD Index futures rose +1 707 to 8 182 contracts. Speculative long positions dropped -2 152 contracts and short positions were down -445 contracts. Fed's ultra monetary easing has sent yields...
Yields Surged, Gold Corrected, But Dollar Got No Lift
It was a rather mixed week where there were conditions for a Dollar rebound, with surging treasury yield and correction in Gold. Yet, no apparent rally was seen. Yen was sold off generally, partly on coronavirus and recovery optimism. But the Swiss Franc was firm together with Euro.
Strong rally...
Sterling Firms Up in Subdued Trading, Dollar Yawns Retail Sales
Trading in in the currency markets continue to be relatively subdued. Sterling is so far the strongest one for today. But it's staying below near term resistance against Euro and Dollar so far. It's also hovering below yesterday's high against Yen. Yen appears to be recovery, in particular against...
Sentiments Weighed Mildly by China Data, Gold and Yields to Watch
Markets are relatively steady in Asia today. Sentiment was somewhat weighed down by mixed data from China, but there is no apparently follow through selling. New Zealand Dollar continues to be pressured as the country extends coronavirus lockdown by 12 days. Australian Dollar seems to be benefiting from the...
China’s Retail Sales Shrank Further, Evidencing Weak Domestic Demand
The latest set of macroeconomic data suggests that the pace of recovery in China remained slow, as a result of flooding and second wave of coronavirus outbreak. Improvement industrial activities decelerated, while retail sales continued to shrink. Weak domestic spending was evident in subdued core CPI released earlier this...
Dollar Shrugs Jobless Claims, Yen Selloff Accelerates
Dollar continues to trade with a soft tone despite better than expected jobless claims data. The decline in claims data is seen more as a result of expiration USD 600 a week supplemental federal benefits, rather than the improvement in the labor market conditions. For now, though, New Zealand...
Euro Higher in Consolidative Markets, Yet to Break Resistance Against Dollar
European majors turn slightly stronger today, in mixed markets. Euro appears to be supported by news that US is refraining from tariffs hikes on Airbus subsidies retaliation. Though, except versus Yen, Euro's strength is not too convincing yet. Dollar turns soft again following strong rally in US stocks overnight....
US Oil and Petroleum Product Stockpile Fell Across the Board Last Week
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks fell -2.11 mmb to 1452.57 mmb in the week ended August 12. Crude oil inventory declined -4.51 mmb (consensus: -2.88 mmb) to 514.08 mmb. Stockpile fell in 2 out...
Yen Accelerates Lower on Rebound in Yields, Strength in US Stocks
Yen is trading as the worst performing today so far, as pressured by surge in US treasury yields. In particular, 10-year yield is above 0.68 handle in pre-markets and could even challenge 0.7% today. US futures also point to higher open with S&P 500 could finally challenge record high....
Dollar Rebounds on Gold and Yield, NZD Hammered by Double Whammy
New Zealand Dollar tumbles broadly today as weighed down by double-whammy of RBNZ QE expansion and return to lockdown. The selloff in Kiwi is somewhat dragging down Aussie and Canadian too. On the other hand, Dollar is staging a strong rebound, with help from much steeper than expected correction...
Gold in Steep Correction as Global Stocks in Strong Rally
The global financial markets continue to trade in full risk-on mode today. In particular, US futures point to sharply higher open as S&P 500 would likely take on new record high. Canadian Dollar is currently the strongest one for today, as lifted by mildly higher oil price. Australian Dollar...
Crude’s Strength Might Pause as OPEC+ Output Set to Increase Further this Month
Crude oil prices remained firm, after the rally in July. The front-month WTI crude oil contract gained +2.36% in the first week of August, after gaining +2.55% in the month of July. The Brent contract rose +2.54%, following a +5.22% rally in July. Profit-taking might be seen in coming...
Markets Back in Risk-On Mode While Dollar, Yen and Franc Weaken
Asian markets surge broadly today, following the strong close in US stocks. DOW is finally catching up by a powerful break through June's high while S&P 500 is closing in on record high. Investors welcomed the news of falling coronavirus hospitalizations in New Work, California and Texas. The trade...
Swiss Franc Weakens While Markets Tread Water
Markets continue to tread water today with little movements. European indices are fluctuating in tight range between gain and loss. US futures point to mildly higher open. In the currency markets, most major pairs and crosses are stuck in side Friday's range. Swiss franc is currently weakest, followed by...
Subdued Trading With Japan and Singapore on Holiday, Dollar Yet to Confirm Rebound
The week starts with a rather subdued tone without much activity. It's National Day of Singapore while Japan is also on Mountain Day holiday. There is also no further price movements on US-China tensions. Major forex pairs and crosses are stuck inside Friday's range, with Dollar and Swiss Franc...