US Stocks Extended Selloff on Faster Fed Tapering, Dollar Mixed
While the US stock extended the near term steep pull back overnight, Asian markets are relatively steady and are just mixed. Major currency pairs and crosses are also stuck in tight range for consolidation. As for the week, Swiss Franc and Yen are the stronger ones on risk off...
US Crude Oil Inventory Dropped Less than Expected. Price Continued to Fall on Omicron Concerns
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks rose +4.27 mmb to 1222.16 mmb in the week ended November 26. Crude oil inventory dropped -0.91 mmb to 433 mmb, compared with consensus of a -1.24 mmb decrease....
Franc and Yen Softer in Consolidations, Gold Presses Channel Support
Global stock markets are recovering slightly today, continuing to stabilize from Omicron worries for now. Major currency pairs are also bounded in consolidative trading in tight range. While Aussie is trying to lead commodity currencies higher, it's lacking clear upside momentum. Swiss Franc and Yen are the softer ones...
Dollar Failed to Rally on Hawkish Powell, Aussie Rebounds after GDP
Dollar attempted for a rally overnight after hawkish comments from Fed Chair Jerome Powell, but momentum quickly faded. Instead, the greenback was dragged down by extended weakness in benchmark treasury yields. Overall market sentiment is stable in Asian session, helping commodity currencies rebound. Aussie is additionally lifted by better...
Hawkish Powell Expects Fed to End QE Tapering a Few Months Earlier than Previously Anticipated
Despite concerns over the new coronavirus variant Omicron, Fed Chair Jay Powell’s testimony before the Senate was hawkish. He suggested that the Fed could accelerate the tapering of asset purchases in order to curb strong inflation. US dollar extended rally against major currencies, with the exception of Japanese yen...
Risk Selloff Resumes on Omicron, Dollar Vulnerable Against Euro and Yen
Selloff in stock markets resume today, after Moderna Chief Executive Stéphane Bancel foresaw "material drop" in effectiveness of current vaccines on Omicron. Benchmark treasury yields also tumble sharply on safe haven flows. In the currency markets, Canadian Dollar lead commodity currencies lower, as oil price tumble. Dollar is dragged...
Dollar and Yen Stay in Consolidation, Awaiting Next Move
Overall market sentiment is stable, with major Asian indexes mixed, following the recovery in US stocks overnight. Yen and Dollar soften slightly after turning into consolidations, but Swiss Franc is still strong. Commodity currencies are mixed with no follow through buying with the current rebound attempt. In other markets,...
CFTC Commitments of Traders – Risk Currencies All Got Dumped
As suggested in the CFTC Commitments of Traders report in the week ended November 23, NET LENGTH of USD index futures added +867 contracts to 35 775. Bets on both sides dropped slightly. Concerning European currencies, NET SHORT of EUR futures jumped 12 626 contracts to 18 452 while...
CFTC Commitments of Traders – Global Commodity Prices Slumped on Omicron Worries
According to the CFTC Commitments of Traders report for the week ended November 23, NET LENGTH of crude oil futures sank -8 128 contracts to 407 657. Speculative longs added +417 contracts while shorts jumped +8 545 contracts. For refined oil products, NET LENGTH for heating oil dropped -1...
Yen and Franc Consolidate as Market Sentiment Stabilized for Now
The forex markets are staying in consolidative mode today as overall market sentiment stabilized. Major European indexes are paring some of last week's losses while US futures also point to higher open. But it remains to be seen if it's just a dead cat bounce, or a reversal. Canadian...
Markets Staying Heavy on Omicron Worries
Worries about Omicron remains a main theme in the markets. Nikkei takes a dive after Japan announced to close its borders to all foreigners as Prime Minister Fumio Kishida said he's taking measures with a "strong sense of crisis". The forex markets are relatively quiet for now, with Yen...
Investor Confidence Shattered by Omicron Variant, Yen and Swiss Franc Surged
Investor confidence was shattered by the news of the heavily mutated B.1.1.529 coronavirus variant, now called omicron. WHO warned that this variant has a large number of mutations, some of which are concerning. It added that preliminary evidence suggested an increased risk of reinfection with this variant. It may...
Yen and Swiss Franc in Strong Momentum as Risk Aversion Dominates
The new coronavirus variant is the main them in the markets today, sending global stocks and benchmark treasury yields sharply lower. Yen and Swiss Franc are trading sharply higher, followed by Euro. Commodity currencies tumble sharply on risk aversion but Sterling and Dollar are also pressured. For the week,...
New Coronavirus Variant Sinks Investor Sentiment, Yen Marches Higher
Risk-aversion dominates Asian markets today as new coronavirus variant sinks investor sentiment. Australian Dollar is leading other commodity currencies lower. Yen and Swiss Franc surge sharply, followed by Euro and Dollar. Overall, it's flight to safety. The question now is, whether Aussie or Kiwi would eventually end as the...
Dollar Firm in Quiet Holiday Trading, Yen Soft
The forex markets are rather quiet in Asian session today. Trading will probably remain subdued with US on holiday. The greenback remains the strongest one for the week on speculation that the "transitory" yet persistent strong inflation would eventually force Fed to raise interest rate earlier. Canadian Dollar is...
US Crude Inventory Surprisingly Increased
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks slumped -5.98 mmb to 1217.89 mmb in the week ended November 19. Crude oil inventory added +1.02 mmb to 434 mmb, compared with consensus of a -0.48 mmb increase....
Dollar Rally Continues as Jobless Claims Dropped to Lowest Since 1969
Dollar's rally continues today and stays firm after much better than expected jobless claims data. Yen is following as second strongest on risk-off sentiment, as major European indexes and US futures are in red. On the other hand, New Zealand Dollar remains the worst performing one on post-RBNZ selloff,...
RBNZ Hiked Rate but More Cautious about Economic Outlook
The RBNZ raised the OCR by +25 bps to 0.75%, as we had anticipated. Policymakers sounded more cautiously about the economic outlook while reiterating the stance of continued reduction of stimulus. Kiwi extended recent correction after the announcement.
On the monetary policy outlook, the central bank reiterated that “it remains...
NZD Softens after RBNZ Hike, Dollar Firming Up
New Zealand Dollar weakens in Asian session after RBNZ rate hike, and leads other commodity currencies lower. Dollar firms up mildly as it's ready to extend recent rally, except versus Yen for now. European majors are mixed, with Sterling have a mild upper hand against Euro and Swiss Franc....
Sterling Breaking to the Downside, Euro in Weak Recovery
Markets are trading in mild risk off sentiment, while treasury yields also surge. New Zealand Dollar is leading other commodity currencies lower, and Sterling is week too. On the other hand, Euro and Swiss Franc are currently the stronger ones, followed by Dollar and Yen. But overall, it should...