Euro Gains Modestly After ECB Cut, Dollar Soft on GDP Miss
Euro is trading slightly higher following the ECB's widely expected 25bps rate cut, though the move lacks strong momentum. In her post-meeting press conference, President Christine Lagarde reinforced the bank’s "gradual easing path".
She stated that a larger 50bps cut was not even considered today, making it clear that an...
ECB Rate Cut Takes Center Stage, as FOMC Hold Triggers Minimal Reaction
FOMC rate decision and press conference yesterday proved to be a non-event. Dollar remained firm following the decision to keep interest rates unchanged at 4.25–4.50%. Fed Chair Jerome Powell reinforced a patient approach to policy adjustments, stating, "we do not need to be in a hurry to adjust our...
CAD Steady After BoC Cut, DOW Nears Record Ahead of FOMC Hold
Canadian Dollar is steady after BoC delivered its sixth consecutive rate cut, lowering its policy rate by 25bps to 3.00% as expected. The pace of easing has slowed from December’s 50bps reduction, reflecting a more measured approach as interest rate sits inside neutral zone. BoC explicitly warned of risks...
Cautious Trading Continues as RBA Cut Expectation Rise, BoC and Fed in Spotlights
Forex markets are trading with a mild risk-off tone in a relatively quiet day so far, with many Asian markets closed for Lunar New Year holiday. Safe-haven currencies, including Yen, Swiss Franc, and Dollar, are holding firm, while commodity-linked currencies are on the weaker side. However, there is little...
Dollar Shrugs Poor Durable Orders; AUD Awaits Inflation Data
The global financial markets are finding their footing following the turmoil triggered by yesterday’s tech-driven selloff. European stocks have moved into positive territory, while US futures signal a flat start to trading. Nvidia, which lost a staggering -17% on Monday—erasing nearly USD 600B in market capitalization—is poised for a...
Safe Havens Reverse Gains as Tech Decline Subsides, Dollar Gains on Trade Plans
The sharp selloff in equities sparked by AI competition concerns appears to have run its course for now. While NASDAQ dropped more than -3% yesterday, the selling pressure did not intensify as the session progressed. DOW, on the other hand, demonstrated resilience, closing up 0.65%. This relatively stable market...
Global Easing Expectations to Anchor Markets Despite Tech Sector Turmoil
Markets opened the week with a dramatic shift in risk sentiment as last week’s record-breaking highs in US equities gave way to sharp declines, driven by tech sector rout. Concerns over US dominance in artificial intelligence surfaced after Chinese startup DeepSeek unveiled a competing AI assistant, leading to fears...
NASDAQ Slide Grabs Focus, Dimming Fed Spotlight to Start the Week
As markets gear up for a week dominated by central bank meetings including Fed and ECB, sharp selloff in US tech stocks has stolen the spotlight. NASDAQ futures dropped more than -2%, triggering mild safe-haven flows into Yen, U.S. Dollar, and Swiss franc. Meanwhile, commodity currencies like Aussie and...
Dollar Slumps as Risk-On Mood Prevails Under Trump’s First Week
Dollar ended the week as the worst-performing major currency, largely weighed down by strong risk-on sentiment that took hold after President Donald Trump’s first week in office. Investors had anticipated more aggressive trade measures from the new administration, but Trump instead struck a relatively softer tone on tariffs, leading...
Euro Strengthens on Optimistic PMI Data; Dollar and Yen Under Pressure
Euro posted notable gains today as lifted by encouraging Eurozone PMI data that suggests the region is beginning the year on firmer footing. Private sector activity showed cautious growth, with reduced drag from manufacturing and moderate expansion in services. Most surprisingly, Germany, which struggled throughout 2024, returned to expansion....
Greenback Falls With Risk-On Sentiment and Trump’s Softer Tone on China
Dollar’s decline accelerated as the week progressed towards the last day, weighed down by strong risk-on sentiment and investor optimism. S&P 500 closed at a new record high on Thursday, with NASDAQ and DOW poised to follow soon.
Contributing to this sentiment were remarks from US President Donald Trump at...
Yen Stabilizes in Weak Position as BoJ Rate Hike Awaited
While Yen remains the worst performer of the week so far, it has stabilized as the markets await the highly anticipated BoJ rate hike in the upcoming Asian session. Expectations for this rate move were well set by comments from BoJ Governor Kazuo Ueda last week. Risks from US...
Dollar Softness Continues as Forex Markets Tread Calm Waters
The forex markets remain unusually quiet today, with Dollar staying soft despite multiple attempts to rebound. The greenback has only managed meaningful gains against the weaker Yen and the struggling Canadian Dollar, while failing to build momentum against other major currencies. With little in the way of significant economic...
Dollar Recovery Capped by Stocks Rally, S&P 500 Ready for New Record
Despite being pressured in the past few days, Dollar remains relatively resilient, refusing to drop despite renewed selling pressure earlier today. US President Donald Trump’s tariff rhetoric is having a diminishing effect on markets, as traders shift their attention back to fundamental and intermarket dynamics. The first significant market...
Kiwi Eases as NZ CPI Backs RBNZ 50bps Cut, Dollar Unmoved by Trump’s Continuous Tariff Talks
New Zealand Dollar softened mildly today as Q4 inflation data reinforced the case for continued monetary easing by RBNZ. The central bank has ample room to swiftly bring interest rate from the current 4.25% to neutral, with inflation staying at around mid-point of 1-3% target range for the second...
Loonie Weakness Persists in Calmer Markets, AUD/CAD Challenges Key Resistance
Forex markets have settled into quieter trading as the immediate impact of US President Donald Trump’s inauguration and initial executive orders fades. While Trump’s proposed tariffs remain a significant concern, their delayed implementation suggests a more calculated and strategic approach, tied to future negotiations. This tempered stance has brought...
Loonie on a Rollercoaster on Tariff Threats, Canadian CPI Watched
Canadian Dollar endured a rough ride, heavily influenced by US President Donald Trump’s tariff rhetoric. The Loonie initially gained some ground yesterday, as Dollar weakened broadly after Trump refrained from imposing immediate tariffs during his first day in office. However, optimism was short-lived as Trump warned of 25% tariffs...
Dollar Weakened by Reports Trump Is Holding Off on New Tariffs
Dollar weakened broadly in early US session as reports from The Wall Street Journal indicated that Donald Trump, during his inauguration, will only outline his trade vision but avoid imposing new tariffs for now. While this temporarily calms market fears of immediate disruptions, the situation remains dynamic, and unexpected...
Greenback Eases Ahead of Trump’s Executive Actions, Bitcoin Takes Leads and Hits New Record
Dollar is trading slightly lower today as markets await Donald Trump’s inauguration as the 47th US President. Attention is focused on his inaugural speech, expected to confirm his policy priorities. However, the real market-moving event is likely to be the series of executive actions Trump has promised to enact...
Global Markets Look Beyond Trump’s Inauguration as Local Drivers Take the Lead
Global markets are buzzing in anticipation of Donald Trump’s inauguration on January 20, yet the latest developments suggest investors may already be looking past the immediate impact. Despite speculation surrounding Trump’s policies—particularly tariffs—various benchmarks and asset classes are charting their own directions based on localized drivers and monetary policy...