Market Overview
From Optimism to Unrest, Summer Rally Cracks
Markets entered last week riding a wave of optimism, but exited rattled. Wall Street could have marked the end of its summer rally, with Friday’s sharp selloff capping a week of crosswinds, from upbeat GDP numbers and trade deals to dismal job data and institutional upheaval. Dollar, too, saw...
Dollar Tumbles on Jobs Miss, Fed Dissenters Add Fuel
Dollar fell sharply Friday after a dismal July jobs report cast doubt on the resilience of the labor market. While the headline job growth missed expectations, the bigger blow came from a stunning downward revision to June’s figure. The data raised alarm bells that the U.S. labor market may...
Tariff Update Sparks Limited Market Fallout, Dollar Eyes NFP for Further Gains
Asian equities slipped slight today after U.S. President Donald Trump issued a long-anticipated executive order updating tariff rates following the August 1 trade truce deadline. But losses were relatively restrained as many of Asia’s key exporters avoided the harshest duties. While tariffs now top out at 41%, nations like...
Yen Reverses Hard as Market Doubts BoJ Urgency, Dollar Retains Momentum
Yen's sharp intraday reversal became the central focus in FX markets today, as traders reassessed BoJ’s latest policy guidance and economic projections. While initial positioning leaned toward hawkish interpretations, especially after last week’s US–Japan trade breakthrough, sentiment quickly pivoted as markets leaned into a more dovish read of BoJ’s...
Dollar Dominance Continues Amid Fed Repricing; Trump Secures Korea Deal, Targets India
Dollar remains the clear outperformer this week, holding firm despite mild retreat in Asian session. Stronger-than-expected US Q2 GDP data have prompted a significant paring back of expectations for a September Fed rate cut. Adding to the hawkish tilt, Fed Chair Jerome Powell struck a more guarded tone at...
Hot US GDP Lifts Dollar, Eyes Now on Fed
Dollar strength resumed in early US session after US Q2 GDP blew past expectations with a 3.0% annualized growth rate. The data added further confirmation that the US economy remains remarkably resilient, reinforcing bullish bets on the greenback. Currency markets reacted swiftly, with traders piling back into Dollar longs...
Soft Inflation Clears Path for RBA Cut, BoC and Fed Next
Aussie weakened broadly on Asian session after Australia's Q2 CPI data cemented expectations for another RBA rate cut in August. However, the decline in Aussie lacks strong momentum so far. The softness in both headline and core inflation readings has effectively given the central bank the green light to...
Markets Back Dollar Strength, Await Australian Inflation Clarity
Dollar’s broad-based advance continues today, underpinned by firm sentiment that recent US trade deals with the EU and Japan mark the clearing of major global trade risks, at least for now. Though US–China talks continue in Stockholm, markets appear unbothered. Officials on both sides have indicated willingness to negotiate...
Pre-BoJ Positioning Lifts Yen, Dollar Holds Top Spot
Yen recovered broadly in Asian session, likely helped by short-covering ahead of Thursday’s BoJ policy decision. Traders may be bracing for surprises in the central bank’s updated economic projections, particularly after last week’s US-Japan trade deal lifted some trade-related uncertainty. Although no rate hike is expected, any forward-leaning language...
Dollar Dominates as Euro Sinks Under Criticism of ‘Unequal’ Trade Pact
EUR/USD reversed sharply after an early bounce on Monday, as markets continued to digest the implications of the new US–EU trade framework. The pair’s drop was driven by a combination of Euro weakness and resurgent Dollar strength, reflecting an underwhelming investor response to the deal and shifting interest back...
Euro Supported by Trade Deal, Eyes Turn to US-China Talks
Markets opened the week in a risk-on mood as trade developments filled the void left by a barren economic calendar. Euro gained broadly following the announcement of the US–EU framework agreement over the weekend, although upside momentum remained modest. The deal eased tariff threats and highlighted strategic cooperation, including...
Risk Appetite Builds After US-Japan Deal, DAX and Euro Awaits Transatlantic Breakthrough
Investor sentiment turned decisively upbeat last week, with global equities rallying on the back of a landmark trade agreement between the US and Japan. The deal was welcomed by markets as a major breakthrough just days ahead of the August 1 tariff deadline.
Japan’s Nikkei surged past 42k mark, with...
Dollar Rebound Gains Momentum as Trade Talks Still in Focus
Dollar is staging a firm rebound heading into Friday’s New York session, reversing most of the earlier weekly losses. While durable goods orders for June came in better than expected, markets largely dismissed the data, recognizing that recent swings in transportation orders are tied more to tariff-driven volatility than...
Shifting ECB Cut Expectations Supports Euro; Trump Tones Down Powell Threat
Euro strengthened notably against Sterling and Swiss Franc as expectations for a September rate cut from the ECB began to fade. Some analysts now see October as a more likely timing, after President Christine Lagarde maintained an optimistic outlook during her post-decision press conference yesterday. Lagarde emphasized that June’s...
Euro Steady as ECB Holds, Lagarde Signals Comfort with Current Stance
ECB held its deposit rate at 2.00% as widely expected, with President Christine Lagarde delivering a message of cautious optimism. Euro was little changed following the decision, as Lagarde emphasized in the press conference that inflation is at 2% and the economy is evolving in a “relatively favorable” manner.
Lagarde...
Focus Shifts to ECB and Trump’s Fed Visit as Markets Cheer Trade Progress
Global risk appetite extended higher, with S&P 500 and NASDAQ both setting new record highs overnight. DOW also surged over 500 pts, driven by optimism following the US-Japan trade deal. In Asia, Japan’s Nikkei continued its charge, with current momentum suggesting a record high could be imminent. The breakthrough...
Global Risk Rally Fueled by US-Japan Deal, Hopes Rise for EU Breakthrough
A wave of optimism rippled through global markets Wednesday after the U.S. and Japan finalized a trade agreement slashing tariffs and easing trade tensions. The Nikkei jumped 3.51%, setting the tone across Asia, while European stocks and US futures are also trading higher. Hopes are growing that other trade...
Markets Cheer US–Japan Tariff Relief, Ignore Japanese Political Turmoil
Yen slumped across the board in Asia as risk appetite surged following the announcement of a long-anticipated trade agreement between Japan and the US. The deal, which sets a 15% tariff on Japanese goods, down from the previously threatened 25%, sparked a sharp rally in Japanese equities, particularly auto...
Trade War Fears Pressure Euro Stocks as EU Retaliation Risks Grow
European Markets are increasingly uneasy over signs that the EU is preparing serious retaliatory measures ahead of the August 1 US tariff deadline. The Anti-Coercion Instrument is increasingly in the spotlight, as EU leaders weigh how to respond to US President Donald Trump’s threat of sweeping 30% import tariffs....
RBA Signals More Cuts, Trade Risk Looms Across Asia
Aussie edged lower in Tuesday’s Asian session after minutes from the RBA’s July meeting confirmed a dovish bias, despite the surprise interest rate hold. The Board remains inclined to ease further, with the debate centered around timing rather than direction. Markets are leaning heavily toward an August rate cut,...