Markets in Risk Aversion on Recession and Trade War Concerns, Yen Strong
Yen remains generally firm in Asian session today as risk aversion dominates. Selloff in US stocks overnight spilled over to other markets. Poor economic data, manufacturing and employment, raised recession concerns. Additionally, US is taking another step in global trade war, by raising tariffs on EU after WTO ruling...
Dollar Regains Control With Job Data, But Yen Much Stronger
Dollar regains some control and stays firm after ADP job report. Though, it's outshone clearly by Yen which is lifted by risk aversion. New Zealand Dollar comes in as second strongest as it's paring some of recent losses. On the other hand, Swiss Franc drops notably after poor CPI...
Brexit Update – Johnson’s New Proposal Unlikely Resolves Irish Border Problem
British pound recovers modestly in light of the news that UK PM Boris Johnson would discuss a new Withdrawal Agreement (the deal) with the EU. We are not hopeful that the new proposal on Irish border would be accepted by EU members, let alone UK parliament. Johnson’s threat that...
Dollar Rally Halted, Focus Turns to ADP Job First
The forex markets are trephining in rather tight range today. Dollar turned mixed overnight after poor ISM manufacturing data. Chance of another Fed cut in October, as priced in by fed fund futures, rose to 63.1%. But outlook could change drastically with upcoming data, including ADP jobs today, ISM...
Dollar Rises as Fed Evans Hints that Rate Cut is Done
Dollar surges broadly today after a Fed dove said that the rate cuts delivered are already enough to lift inflation back to target. Euro somewhat shrug off weak inflation and PMI data and follows as second strongest, then Swiss Franc. Australian Dollar is the weakest one after RBA's dovish...
Aussie Dives after RBA Dovish Rate Cut, Dollar Strong
Australian Dollar drops broadly after RBA cut interest rate as widely expected. The central bank also maintains easing bias, suggesting that the easing cycle might not be over yet. Poor housing data also weight on sentiments. New Zealand Dollar is following as second weakest and then Japanese Yen. On...
Euro Dives Again on Poor German CPI, Dollar Jumps
Euro drops broadly today as pressured by renewed selling following weaker than expected German inflation data. That's more than enough o offset improved unemployment rate. For now, though, Swiss Franc is the weakest one, followed by New Zealand Dollar. On the other hand, Dollar surges broadly, with the help...
Sentiments Weighed Down by Risk of US-China Financial Decoupling, Kiwi Falls on Business Confidence
The markets are trading in mild risk averse mode ahead of quarter end. There are some worries of financial decoupling of US and China even though it's just at very preliminary stage. But selloff is limited with support from improvements in Chinese PMIs. Yen is trading generally firmer. On...
CFTC Commitments of Traders – Sentiment Improves amidst Expectations of Trade Talks
As suggested in the CFTC Commitments of Traders report in the week ended September 24, NET LENGTH in USD Index added +165 contracts to 41 939. Speculative long positions added +687 contracts and short positions slipped -522 contracts. Concerning European currencies, NET SHORT for EUR futures plunged -7 837...
CFTC Commitments of Traders – Crude Oil Price Slumps as Middle East Tensions Ease
According to the CFTC Commitments of Traders report for the week ended September 24, NET LENGTH for crude oil futures dropped -2 943 contracts to 424 162 for the week. Speculative long positions were down -1 864 contracts while shorts gained +1 079 contracts. Crude oil prices slumped last...
Sterling and Euro Broadly Pressured, Dollar Mixed Awaiting Trade Talks
Weakness in Sterling and Euro was the main directions in the forex markets last week. Dollar tried to extend recent rally but ended mixed only. Upside of the greenback was limited by persistent trade uncertainties. While commodity currencies ended higher, they have just merely turned into consolidations and pared...
Sterling Pressured as BoE Hawk Turns Dovish
Sterling weakens generally today after a known BoE hawk Michael Saunders surprisingly turned dovish. The Pound will likely end the weak as the worst performing one. Euro is trying to recover but there is little committed buying so far. The common currency is set to end the week. as...
Dollar Firm after Breaking Key Resistance Against Euro
Dollar stays firm in rather quiet pre-weekend trading today. EUR/USD's break of 1.0926 support is a clear sign of greenback's strength. Yet, we'd still prefer to seen more buying in other Dollar pairs to confirm. For the week, European majors are generally the weakest as led by Sterling. Dollar...
EUR/USD Makes New 2019 Low But No Follow Through Selling Yet
Forex traders remain rather uncommitted today. Euro was weighed down by renewed weakness in German 10-year bund yield, which hit as low as 0.594. The common currency hit new 2019 low against Dollar but there is no follow through selling. Australian Dollar also recovers notably after initial weakness. On...
Dollar Buying Lost Momentum ahead of Key Resistance
The forex markets remain in rather indecisive mode for now. Dollar buying attempted to take off yesterday, but quickly lost momentum. The greenback pares back some of yesterday's gains in Asian session. Similarly, there was no follow through selling in Australian and New Zealand Dollar so far. Yen is...
Dollar Rises on Trade Pessimism and Trump Impeachment
Markets are generally in risk averse mode today, partly due to receding US-China trade optimism after hardline comments from US President Donald Trump at UN yesterday. Also, US House Speaker decided to lunch a formal impeachment inquiry on Trump. Nevertheless, while European markets are in red, DOW future is...
Sentiments Turned Sour after Trump’s Harsh Words on China
Sentiments turned sour again after US President Donald Trump's harsh words on China at UN. But reactions in the forex markets are relatively muted. Dollar is the stronger one for now. New Zealand Dollar is supported after RBNZ stands pat without hinting on another imminent rate cut. On the...
Sterling Surges of UK Supreme Court Ruling, Aussie Lifted by RBA Lowe
Sterling rises broadly today as MPs are expected to back to work on blocking no-deal Brexit after Supreme Court ruling. Meanwhile, Australian Dollar is lifted by RBA Governor's refrain from signaling an imminent rate cut next week. New Zealand Dollar follows higher too. On the other hand, Yen and...
US-China Trade Talks to Continue in Two Weeks, Euro Look into German Ifo
The forex markets are generally in tight range today. Risk sentiments improved slightly after US Treasury Secretary Steven Mnuchin indicated there would be a high-level trade talks with China in two weeks. New Zealand and Australian Dollars are trading mildly higher. On the other hand, European majors are generally...
Euro Plummets as Poor PMIs Point to More ECB Stimulus
Euro is sold off broadly today after shocking poor Eurozone and German PMIs. As Markit put, that data could put pressure on ECB to add to its recent stimulus package. Sterling is somewhat dragged down by Euro and is following as the second weakest. On the hand, Yen is...