Dollar’s Rebound Stalls Amid Weak PPI and Jobless Claims; Focus Shifts to BoJ
Trading activity slowed notably today as the markets turned relatively quiet. Dollar attempted a rebound from its losses earlier this week but struggled to gain momentum after worse-than-expected PPI and jobless claims data. Despite being one of the weaker performers this week, Dollar has managed to stay above last...
Dollar Stabilizes After FOMC Projections, Eyes on US PPI and Jobless Claims
While Dollar had a sharp decline following US consumer inflation data overnight, the selloff was short-lived. The greenback stabilized and recovered after FOMC projections indicated that only one rate cut is likely this year. Stock and bond markets showed little reaction to Fed's announcement. Attention now turns to upcoming...
Dollar Plummets on Softer Inflation Data Ahead of Crucial FOMC Decision
Dollar took a significant hit in early US session, following the release of weaker-than-expected consumer inflation data. A particularly notable point is that headline CPI remained flat for the month, a scenario not seen since November last year. Annual core CPI also continued its steady disinflationary trend. In response...
Risk-On Sentiment Holds; Key US Inflation and Fed Announcements Loom
The forex markets are predominantly range-bound today as traders eagerly anticipate two pivotal events: US Consumer Price Index release and Federal Reserve's economic projections. These announcements have the potential to trigger significant market volatility, given their implications for future monetary policy. While Euro struggles amid ongoing political turmoil in...
Euro’s Brief Respite Ends, Renewed Selloff Driven by French Political Woes
Euro continues to be under significant pressure due to increasing political uncertainty in France. President Emmanuel Macron's call for a snap election has heightened fiscal consolidation risks, with Moody's describing this development as "credit negative." Investor confidence has further eroded following a poll suggesting the National Rally could significantly...
Aussie Down on Risk Sentiment and Business Confidence, Yen Also Soft
Australian Dollar is trading broadly lower today, primarily due to selloff in stocks in Hong Kong and China as markets reopened after holiday. This downward pressure is compounded by the decline in Australian business confidence, which turned negative. ANZ has become the first of the big four banks to...
Euro Staying Pressured Under Pressure Amid Yield Volatility
As US session begins, Euro continues to face significant downward pressure, largely influenced by political developments in France. The call for a snap election following the far-right National Rally party's gains in the EU election has sparked concerns among investors, driving French 10-year yield to its highest level since...
Euro Tumbles Amid Political Uncertainty, Market Eyes FOMC Dot Plot and US CPI This Week
In holiday-thinned Asian trading today, Euro's sharp decline was the focal point. Investors' reaction to European Parliament election results was overwhelmingly negative. The far-right's significant gains have sparked concerns, driving the common currency through key support level against both Sterling, and a near term support again Dollar. This technical...
Strong NFP Report Propels Dollar and Drags Risk Sentiment
Dollar rebounds broadly in early US session following stronger-than-expected employment data. Despite a slight uptick in unemployment rate, robust headline job growth and wage increases highlighted the US job market's continued tightness. This suggests that Fed should remain cautious about premature policy easing.
In reaction to the data, US futures...
Sluggish Forex Markets on Hold for Direction from US Non-Farm Payrolls
Forex markets remain directionless as the week's highly anticipated central bank activities. The rate cuts by both BoC and ECB failed to provide the expected catalysts for significant currency movements. Neither Canadian Dollar nor Euro managed to break out of their recent trading ranges following these policy adjustments. Similarly,...
Euro Holds Steady After ECB Rate Cut
Following ECB's decision to lower interest rates by 25 bps, a move that aligned with market expectations, Euro remained relatively steady within its near term trading range. ECB President Christine Lagarde, speaking at the post-meeting press conference, deliberately avoided providing explicit forward guidance, stating that ECB is not pre-committing...
Post-BoC Selloff Short-Lived for Canadian Dollar, Euro Eyes Upcoming ECB Meeting
Canadian Dollar remains the weakest performer for the week at this point. Yet, losses is so far contained, with the recovery after the brief selloff following BoC's rate cut overnight. While further cuts are anticipated within the year, the likelihood of another immediate adjustment in July is currently seen...
Subdued Trading Continues as Markets Shrug US ADP Disappointment
Trading in the forex markets is subdued US session gets underway, with weaker-than-expected U.S. ADP private job data failing to stir significant movement in the Dollar. Despite the slowdown in job gains and pay growth, the job market remains robust. US futures are pointing to a flat open, and...
Weak Loonie Anticipates BoC, Struggling Dollar Seeks Support from ADP and ISM Services
Forex trading in Asian session today was relatively muted, with market participants holding off on major moves in anticipation of impending key events. The spotlight is on BoC, with traders eagerly awaiting its rate decision. There is considerable speculation on whether the central bank will opt for an interest...
Yen and Swiss Franc Skyrocket Amid Lower Treasury Yields and Market Cautiousness
Japanese Yen and Swiss Franc are seeing significant upward momentum today. As news flow has been very slow, these safe-have currencies' are likely partly supported by the extended decline in benchmark treasury yields across the US and Europe. This movement also suggests an underlying risk aversion among investors, although...
Dollar’s Decline Sharpens Against European Majors, Yen Sees Rebound
Dollar weakened broadly overnight, particularly against European majors, following disappointing US manufacturing data that also pressured benchmark Treasury yields lower. This data not only pushed benchmark Treasury yields lower but also triggered the greenback's downturn. Despite these movements, the stock markets closed mixed, suggesting that the market reactions were...
Yen Rises Slightly, Yet Struggles to Gain Strong Momentum
The forex markets are showing relatively limited movement today, remaining mostly within established ranges. Yen is having a slight uptick, supported by the dips in US and European benchmark treasury yields. But the Japanese currency' gains are modest and insufficient to reverse recent declines. Meanwhile, Swiss Franc is charting...
Risk Sentiment Firm, Currencies Hold Steady, Anticipate Rate Cuts and Crucial Economic Data
Global markets started the week on a positive note, drawing momentum from the robust close last week in the US and buoyed further by slightly better than expected manufacturing data out of China. In Tokyo, stocks received additional support from comments by BoJ Executive Director Takashi Kato, who indicated...
Swiss Franc Outperforms as Global Inflation Data Lack Lasting Impact on Forex
Inflation data were the key drivers in the forex markets last week, though they failed to produce any sustained movements across major currencies. Australian Dollar rallied following robust CPI figures, yet its gains were limited by the prevailing risk-off sentiment in the region.
Similarly, Euro received a modest boost after...
Euro Rallies on Inflation Surprise, US PCE Data Bolsters Stocks
Euro surges broadly today after Eurozone inflation data showed larger than expected re-acceleration in May. While this increase doesn't shift the consensus that ECB will proceed with a rate cut next week, it significantly dampens any remaining expectations for a subsequent cut in July. Market speculation now leans towards...