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BoJ’s Historic Hike Fails to Lift Yen, RBA’s Cautious Stance Weighs on Aussie

Yen declines broadly in a classic "sell-on-news" reaction following BoJ's landmark decision to exit its eight-year negative interest rate policy and announce its first rate hike in 17 years. Although the immediate economic impact of this move is considered minimal, its psychological and symbolic significance cannot be understated. This...

Yen on the Brink as Markets Await BoJ

Yen's continued weakness persists in today's subdued market, despite growing expectations for a BoJ rate hike in the upcoming Asian session—a move anticipated to conclude its longstanding negative rates policy. Although the anticipated adjustment from -0.10% to 0.00% may seem minor, its symbolic significance for the Japanese economy is...

Caution Prevails as Markets Brace for Central Bank Frenzy and Economic Data

Yen softened slightly in Asian session today, influenced by a robust rebound in strong rebound in Nikkei. Meanwhile, New Zealand Dollar received a modest boost, buoyed by an upturn in the country's services data. This was mirrored by the Australian Dollar, which, along with the Kiwi, found support in...

Dollar Rises on Fed Reassessment, But Reversal Pending Confirmation

Dollar ended the week as the strongest currency, boosted by the fresh round of inflation data that led markets to reassess expectations around Fed's rate cuts. This recalibration was also marked a pronounced rebound in treasury yields and a notably cautious sentiment pervading the stock market. Despite this rally,...

Yen Retreats Further as Dollar Sees Caution Among Traders

Yen's pull back continues today despite more positive news on wages negotiations in Japan. Remarkably, the currency has undone its gains from last week against all major counterparts, barring the even more beleaguered New Zealand Dollar. Expectations are still leaning towards an imminent interest rate hike by BoJ; however,...

Dollar Strengthens as Treasury Yields Surge, Anticipating a Hawkish Fed Shift?

Dollar rebounded strongly overnight along with rally in treasury yields, and maintained its strength in Asian session. This resurgence is largely attributed to traders recalibrating their expectations for Fed's monetary policy, in light of this week's inflation data that surpassed forecasts. Both CPI and PPI reports for this week...

Consolidation Persists Amid Indecision and Anticipation

Consolidative trading continues in the forex markets in general. There is little reaction to the batch of economic data released from there US. Comments from ECB officials were also largely ignored. For now, commodity currencies are the stronger ones for the week, as led by Canadian Dollar, while Euro...

Forex Consolidation, Metals Surge, US Retail Sales and PPI Eyed

Overall, the forex markets are still stuck in consolidative trading in Asian session, with expectations set for a subdued European session given the light economic calendar. However, anticipation builds for volatility spikes with releases of US retail sales and PPI later today. For now, Canadian Dollar is the stronger...

Yen Back Under Pressure, Copper Surges

Yen declined notably during the European session and stays weak as markets enter into US session. The selloff comes in the wake of rebound in European and US benchmark yields. Despite positive news from Japan, where large corporations have committed to significant wage increases for the first time in...

Yen Slightly Firmer on Wage Growth Prospects, Dollar Rally Capped

In today's subdued Asian session, the currency markets saw minimal movement, with most major pairs and crosses gyrating within yesterday's range. Japanese Yen managed to carve out modest gain, buoyed by optimistic remarks and tangible actions related to wage growth within the country. Chief Cabinet Secretary Yoshimasa Hayashi's commentary...

Dollar Hesitates after Stronger than Expected CPI, Sterling Lower on Job Data

Dollar saw only a temporary uplift from stronger-than-expected CPI figures from the US. The greenback reverted to pre-release levels, while stock futures rebounded. Traders appeared to be refraining from taking decisive bets. This reaction suggests that the inflation data, despite being higher than anticipated, may not be sufficiently influential...

Yen Retreats as FM Tempers Inflation Optimism; Market Awaits US CPI and UK Wage Insights

Yen weakened broadly in Asian session today, reversing some of its robust since the previous week. This shift in momentum comes amid tempered expectations for an imminent BoJ rate hike at next week's meeting. Japanese Finance Minister Shunichi Suzuki's comments that the country is not yet ready to declare...

Yen Dominates Quiet Markets, Bitcoin Achieves Record High

Yen continues to stand out as the strongest currency in today's relatively subdued markets, supported by anticipations of an imminent rate hike by BoJ next week. Swiss Franc and US Dollar are trailing behind in strength, indicating a preference for safer assets. Conversely, Australian Dollar, New Zealand Dollar, and...

Yen Strengthens on Recession Avoidance, Dollar and Sterling Await Data-Driven Clarity

Yen rises broadly in Asian session today, lifted by economic data indicating Japan's narrow escape from recession last year. This economic turnaround, while not directly influencing BoJ decision on interest rates decision next week, certainly does not obstruct the pathway for a hike. Yen's momentum, though currently modest, could...

Dollar Dives, Yen Soars, A Week of Divergent Fortunes

Dollar and Yen had contrasting fortune last week, responding to divergent central bank expectations. Dollar found itself as the week's worst performer, a reflection of solidified expectations for Fed's first rate cut in June, reinforced by Fed Chair Jerome Powell's semiannual testimony. The cooling job US market is seen...

Dollar Slump Intensifies as Jobs Report Underwhelms, Gold at New Record

Dollar's decline accelerated in the early US session, triggered by disappointing non-farm payroll data. Despite a seemingly robust headline job growth figure for February, the substantial downward revision of January's numbers cast a shadow, marking the overall report as a miss. Moreover, the unemployment rate's unexpected jump and the...

Aussie Tops on Risk-On Wave and China Trade Boost, Dollar in Limbo Before NFP

Dollar is continuing its streak as the weakest performer for the week, amid a global surge in risk appetite. Major stock indices around the world, including S&P 500, NASDAQ, DAX, and CAC, have notched new record highs overnight. This wave of optimism has seamlessly transitioned into Asian session today....

Euro Wavers After ECB Holds Rates, Yen Dominates on Rate Hike Bets

Euro dips notably following ECB's decision to maintain interest rates unchanged, coupled with downward revision in its inflation forecast. Specifically, ECB now anticipates that headline inflation will return to its target by 2025 and drop below 2% in 2026. However, the common currency found some footing during President Christine...

Dollar’s Slide Deepens, Yen Bolstered by Wage Optimism, Euro Awaits ECB

Dollar fell sharply overnight and the broad-based decline extended into Asian session today. Some analysts attributed this selloff to Fed Chair Jerome Powell's commentary during his Congressional testimony. Powell's mention of needing "a little bit more data" before contemplating rate cuts has ignited a wave of speculation among investors...

Dollar and Yields Downturn Continues, Fed Chair Powell Offers No Respite

Dollar is trading broadly lower as markets enter into US session, with minimal backing from Fed Chair Jerome Powell's prepared remarks for his Congressional testimony. Instead, the currency's weakest is accentuated by extended drop in treasury yields and slightly disappointing ADP private job data. Amidst this backdrop, Swiss Franc...