Dollar Reprieve Fades as Risk Aversion Reasserts, Swiss Franc Jumps
The brief reprieve for Dollar has already faded. As markets move into the US session, the greenback is once again under broad selling pressure, undoing the tentative stabilization seen earlier and returning to a defensive footing. There is little in the way of fresh fundamental catalysts today. Instead, the...
Dollar Consolidates as Geopolitics Take a Breather
The forex market has finally slipped into a period of stabilization, with Dollar shifting into consolidation after several volatile sessions. All major pairs and crosses are trading within yesterday’s ranges, signaling a collective pause. Part of the calm reflects a temporary cooling in geopolitical and trade-war rhetoric. Recent fears...
Dollar Stays on the Defensive as Shutdown Risk Returns to the Fore
Dollar remains generally weak as markets move into the early US session, even though outright selling pressure has eased slightly. The slowdown, however, looks more like consolidation than recovery, with the greenback still exposed to fresh political and policy risks. That vulnerability follows an already bruising period marked by...
Yen Roars on Takaichi’s Blunt Warnings, Dollar Selling Intensifies
Yen once again took center stage, staging a broad-based rally that gathered pace through the Asian session. USD/JPY dived below 154, a sharp reversal from last week’s run toward 160 — a level widely perceived by markets as Japan’s informal line in the sand. The move gained traction as...
Policy Chaos Takes Its Toll; Dollar Long-Term Downtrend Takes Shape
Relentless geopolitics has continued to haunt global markets since the turn of the year, and last week offered little respite. What has changed, however, is not the scale of the headlines but the market’s tolerance for them. Investors appear increasingly fatigued by policy uncertainty and abrupt reversals from the...
Yen Bounce Short-Lived Without Market Buy-In, Loonie Bounces After Retail Sales
Yen’s sharp rebound today, triggered by suspected official intervention, is already fading quickly, highlighting the market’s skepticism toward one-off defensive actions. After an abrupt spike higher, the currency quickly lost momentum as traders faded the move. The development is inline with the view that government action alone is insufficient...
Yen Snaps Back on Intervention Signs, Japan Draws Line Near 160
Yen staged a sharp rebound in early European session on suspected intervention, interrupting a renewed bout of selling that followed the Bank of Japan policy decision. The bounce came after markets judged the BoJ’s message insufficiently hawkish to arrest currency weakness.
Before the reversal, USD/JPY pushed beyond 159, extending gains...
Relief Rally Continues, But Trust Gap Remains; Dollar Stays Soft
Risk-on sentiment returned to global equity markets today as tensions surrounding Greenland appeared to de-escalate further. Stocks across regions pushed higher, reflecting relief that the immediate geopolitical shock has been contained, at least for now. The shift followed fresh comments from US President Donald Trump, who elaborated on the...
Greenland Framework Triggers Risk-On Turn, Trade War Fears Recede
Market sentiment staged a sharp U-turn after signs that U.S.–European tensions over Greenland had moved toward resolution. The immediate risk of a transatlantic trade war has been averted for now, allowing investors to unwind defensive positioning built earlier in the week. The pivot lifted global equities, with Japan leading...
Markets Take Davos in Stride, Trump Rules Out Force, Keeps Pressure on Greenland
Market reaction to US President Donald Trump’s highly anticipated speech at the World Economic Forum was relatively muted, suggesting investors had already priced in a confrontational tone. Greenland remained the central issue for market participants. Trump’s remarks offered partial relief, as he appeared to rule out military action to...
Markets Catch Their Breath, Trumps Speech in Davos Now Key
Global markets appeared to stabilize somewhat today after the sharp U.S. selloff overnight, which saw the DOW suffer its worst one-day loss since October. That said, the underlying source of stress has not faded. Greenland-related tensions remain unresolved, with no visible path toward de-escalation. The current stabilization looks more...
Dollar, Stocks, and Treasuries All Down as Trump Escalates Pressure on Allies
The “Sell America” trade gathered further momentum today, with U.S. assets coming under broad pressure as markets returned to full participation. U.S. Treasuries led the move, with the 10-year yield pushing toward 4.3% as bond selling accelerated. U.S. equity futures point to a sharply lower open. The combination of...
Dollar Slumps as “Sell America” Trade Reawakens
Dollar is under broad pressure today as markets return from Monday’s U.S. holiday with persistent focus on geopolitical risk. The move comes along with sharp rise in 10-year Treasury yield, which pushed above 4.27%, extending last week’s decisive break above the 4.2% threshold after nearly a month of failed...
Europe Pushes Back as Greenland Tariff Threats Reshape Risk Outlook
Greenland dominated global headlines today as geopolitical risk surged back into focus. What had previously looked like an unusual diplomatic dispute escalated sharply over the weekend, forcing markets, governments, and corporates to reassess transatlantic relations and the risk of renewed trade war.
The escalation followed a pledge by US President...
Swiss Franc Rallies as Greenland Escalations Push Gold to Record
Risk aversion dominated markets across Asia and spread into Europe today as an abrupt transatlantic diplomatic and trade shock rippled through asset prices. Investors fled to traditional safe havens, pushing Gold and Silver to fresh record highs, while equities came under heavy pressure.
At the core was the dramatic escalation...
When the First Crack of 2026 Appears in US Treasuries
The second full week of 2026 was dominated by high-level political and macro headlines, leaving markets in a constant state of reassessment rather than conviction. Traders were confronted with a dense mix of headlines, ranging from renewed scrutiny of the Fed’s independence to mounting speculation over who will succeed...
Japan Signals Resolve at 160 Yen; Joint Intervention Talk and BoJ Speculations
Yen is once again attempting to recover from its recent sharp losses, with momentum this time supported by a more forceful policy backdrop. Japanese authorities have stepped up verbal intervention, and crucially, officials have gone beyond routine warnings and have explicitly flagged the possibility of joint action with the...
Dollar Surges, Fed Cut Bets Slide, as Jobless Claims Drop Below Key 200k Mark
Dollar climbed sharply in early US session as markets continued to pare back bets on a Fed rate cut in Q1 2026, a move driven by stronger-than-expected labor market data. Initial jobless claims fell back below the psychological 200k mark, countering dovish concerns about extended labor-market deterioration.
Odds of a...
Markets Breathe Easier After Trump Signals Restraint on Iran
Early market nervousness over a potential escalation in the Middle East eased as investors reassessed the likelihood of near-term US military intervention in Iran. Initial risk-off moves faded quickly, helping stabilize broader sentiment. A key factor was messaging from US President Donald Trump, who signaled that Washington may not...
Japan Steps Up Verbal Intervention, Yen Finds Temporary Breathing Room
Yen recovered broadly today after Japan delivered its strongest verbal intervention in months, temporarily slowing the currency’s slide. The shift in tone came as USD/JPY neared 160, its strongest level since July 2024, prompting officials to push back more forcefully against what they described as excessive moves.
Crucially, the rhetoric...