Yen Stays Pressured, Euro Sluggish on ECB Comments
Overall outlook in the financial market is unchanged, with Yen selloff as the main theme, as major global treasury yields continue to march higher. Euro is second weakest after ECB officials talked down the threat of inflation. Australian Dollar is trading broadly higher, followed by Kiwi. Dollar, Sterling and...
Yen Selloff Continues on Strong Stocks and Yields, Sterling Lifted by Hawkish BoE Comments
Yen's selloff continues as another week starts, backed by rebound in Asian stocks and Japanese yield. Indeed, 10-year JGB yield, currently at 0.093, is on track to 0.1 handle. Sterling is currently the strongest one, as lifted by hawkish comments from BoE officials over the weekend. Australian Dollar is...
CFTC Commitments of Traders – Energy Prices Rallied amidst Concerns of Prolonged Power Shortage
Energy prices rallied across the board as the problem of energy shortage across the globe has exacerbated. According to the CFTC Commitments of Traders report for the week ended October 5, NET LENGTH of crude oil futures rallied +24 493 contracts to 398 307. Speculative longs jumped +21 038...
CFTC Commitments of Traders – Bets on Lower European Currencies Accelerated amidst Power and Supply Chain Crisis
As suggested in the CFTC Commitments of Traders report in the week ended October 5, NET LENGTH of USD index futures rose +5 565 contracts to 32 026. Bets were trimmed on both sides. Concerning European currencies, EUR futures drifted to NET SHORT of 22 334. Speculative shorts rallied...
Yen Crosses Followed Yields Higher Against, Loonie Rode on Oil
Yen was once again sold off broadly last week, following late rally in treasury yields despite disappointing US job report. Resilience in overall risk appetite also kept the Japanese currency pressured. Meanwhile, Euro followed as as distant second worst on selloff in crosses, as well as Dollar. New Zealand...
Dollar Tumbles after Huge NFP Miss, CAD Surges
Dollar tumbles in US session after another huge non-farm payroll miss. On the other hand, Canadian Dollar surges notably after solid employment data. As for the week, the Loonie is now in a pole position to end as the strongest. Yen is still the worst performing, but we'd see...
Yen Weakens, Yields and Stocks Surge, Focus Turns to NFP
Following strong rally in US stocks and treasury yield overnight, Yen is trading broadly lower today, together with Swiss Franc. Yen is also the worst performing one for the week, followed by Euro. On the other hand, Canadian Dollar is the winner for the week, followed by Aussie. Focus...
Euro Stays Pressured in Slow Markets, Risk Appetite Returning
Selloff in Euro remains the main theme in slow markets today. Return of risk appetite is also weighing down Dollar and Yen. On the other hand, commodity currencies are generally strong, with Aussie having an upper hand over Kiwi and Loonie. Sterling is mixed for now, partly supported by...
Euro Weakness Continues in Flip-Flopping Markets
Overall markets continue to be rather mixed for now. Commodity currencies rally in Asian session, as led by Aussie, following rebound in the stock markets. On the other hand, Dollar is turning softer again, together with Yen. Euro's weakness is the more persistent development this week, in particular against...
Dollar Stronger on ADP, Falling Stocks and Rising Yields, Euro Tumbles
The markets are back on risk-off mode again today, while major global treasury yields trade higher. Stronger than expected ADP job data provides little support to over sentiment. Yen is leading the way higher, followed by Dollar and Swiss Franc. On the other hand, despite RBNZ delivering the expected...
RBNZ Hiked Policy Rate for First Time in 7 Years
For the first time in 7 years, the RBNZ increased the OCR by +25 bps to 0.5% in October. Policymakers pledged to tighten further in coming months as inflation pressure continues to exceed target. Policymakers remained hopeful about the economic outlook, suggesting that easing of pandemic-related restrictions could help...
Kiwi Down after RBNZ Rate Hike, Yen Softer on Rising Yields Again
New Zealand Dollar trades mildly lower together with commodity currencies in quiet Asian session. Overall markets are mixed as Japan and Hong Kong stocks head lower, decoupling from the strong rebound in the US overnight. Dollar appears to be supported by the rise in treasury yields, with 10-year yield...
Sterling Rises in Stable Markets, Euro and Swiss Franc Soft
Market sentiment is stable today, with European index trading mildly higher while US futures point to a rebound. But overall direction remains rather unclear. Sterling is currently the stronger one, with additional help from buying against other European majors. Kiwi is also firmer, awaiting tomorrow's RBNZ rate hike, followed...
RBA Affirmed No Rate Hike Until 2024, Widening Policy Divergence with Counterparts
The RBA left the cash rate unchanged at 0.1%, and asset purchases at AUD 4B/month, in October. Despite sharp rise in housing prices, policymakers chose to stick with ultra-easy monetary policy in order to achieve the inflation target and full employment.
The central bank remained cautiously optimistic about the economic...
Aussie Soft after Uneventful RBA, Dollar Recovering after Brief Selloff
Dollar is regaining some ground in Asian session today, as yesterday's selloff was relatively well contained so far. Sterling is also recovering, together with Euro, against others. On the other hand, Australian Dollar turns softer after uneventful RBA rate decision. Other commodity currencies are also weak. Overall markets will...
Swiss Franc Rises Broadly as Dollar and Yen Pare Gains
Swiss Franc is the winner so far today, as Dollar and Yen pare back some of last week's gains. Meanwhile, Euro is also soft after poor investor confidence data. On the other hand, New Zealand Dollar is following closely as second strongest, on anticipation of RBNZ rate hike later...
Yen to Follow Risk Sentiment, RBA and RBNZ Featured Early in the Week
While some selling pressure is seen in Asian stocks, the forex markets are relatively steady. Canadian Dollar is currently the stronger one, followed by Yen. Sterling is the softer one, followed by Swiss France, Euro and Dollar. Overall risk sentiment will continue to drive the markets this week and...
RBA Preview – To Maintain Rate at Historical Low as Counterparts Begin Tightening
The RBA will maintain all monetary policy measures unchanged at next week’s meeting. That is, the cash rate, as well as the yield target on the April 2024 bond, will stay at 0.1%. Asset purchases will also be kept at a pace of AUD 4B/week. Policymakers will continue to...
Dollar Index Could Be Capped by 94.46 Fibonacci Level as Yields Rally Halts
Dollar had been the strongest for most of the week but lost it first place at the time, as treasury yields retreated. Instead, resilient risk appetite in the US, as well as firm oil price helped Canadian and Australian Dollars stole the first and second place. On the other...
CFTC Commitments of Traders- Bets on Lower Euro Jumped amidst Energy Crisis
As suggested in the CFTC Commitments of Traders report in the week ended September 28, NET LENGTH of USD index futures gained +1 361 contracts to 26 461. Concerning European currencies, NET LENGTH in EUR futures slumped -11 223 contracts to just 872. Speculative shorts soared remarkably, by +16...