Market Overview
Euro and Swiss Lifted by Pull Back in Sterling, Dollar Mixed
Sterling's pull back extends deeper today on renewed Brexit concern. Setting a hard deadline of December 2020 for trade negotiations UK and EU could create another Brexit cliff-edge. Meanwhile, Australian and New Zealand Dollars follow the Pound as next weakest, partly weighed down by risk aversion. On the other...
Sterling Extends Retreat on Johnson’s New Brexit Move, Aussie Soft on RBA
Trading in the forex markets continue to be relative quiet today. Sterling is mildly softer as consolidations continues. It's weighed down slightly by Boris Johnson's move to block transition period extension. Australian Dollar is the second weakest after RBA minutes affirm the chance of more easing. On the other...
Investors Shrug Poor Eurozone and UK Data, Risk Appetite Continues
Commodity currencies are general higher today, with the help from risk appetite in European markets, and US futures. Poor Eurozone and UK data are largely shrugged off by investors. Canadian Dollar is so far the strongest, additionally supported by mild strength in oil prices. On the other hand, Yen...
Risk Appetite Takes a Back Seat, Sterling to Face More Event Risks Ahead
Risk appetite is taking a back seat for now as investors are not too satisfied with the tiny tariff rollback in the US-China phase one trade deal. Better than expected economic data from China also provide little inspiration. Australian Dollar trades mildly lower in relatively quiet markets in Asia....
Dissatisfied With Tiny US-China Tariff Rollbacks, Risk Appetite Might Struggle to Push Forward
The markets were rocked by three key events last week, UK Election, US-China trade deal and FOMC rate decision. Sterling ended as the strongest one last week as boosted by the Conservative's landslide victory in UK election, removing a large of of Brexit uncertainty. Canadian Dollar followed crude oil...
US-China Tariffs Rollback in Question, Sterling Firm on Brexit Certainty
Sterling remains undoubtedly the strongest one for today, and the week, cheering Conservative's landslide victory in UK elections. Boris Johnson pledged that "we will get Brexit done on time by the 31st of January, no ifs, no buts, no maybes." That's what markets are firmly believing in now. Meanwhile,...
Markets in Ecstasy on UK Election and US-China Trade Deal
Sterling strengthens broadly today as an important hurdle for Brexit is cleared with Conservative's landslide victory in the UK election. Yen and Swiss Franc are broadly pressured on return of risk appetite, helped also by completion of US-China trade deal phase one. Over the week, the Pound is the...
Euro Firm after ECB, Dollar Slightly Lower after Poor Jobless Claims
Both Euro and Swiss Franc are generally firm today after ECB and SNB rate decisions, as not much reactions are being triggered. Though, as for today, Australian Dollar is the strongest one so far. Sterling, on the other hand, pares back some of recent gains as traders lighten up...
Dollar Dives as Fed Might Not Hike Until after 2022, ECB and SNB Next
Dollar was sold off deeply overnight after Fed left interest rate unchanged. Most importantly, Fed chair Jerome Powell indicated that there is no need for any rate hike unless inflation materially surprises on the upside. Considering that Fed projects inflation to be around target through 2022, interest rate might...
Dollar Shrugs Higher Than Expected CPI, Awaits FOMC
Dollar shrugs off slightly better than expected consumer inflation data and weakens mildly in early US session. But loss is limited as focus turns to FOMC rate decision, statement and new economic projections. At this point, European majors are generally weak as markets also look forward to tomorrow's UK...
Sterling Retreats on Last YouGov Poll, Dollar Await CPI and Fed
Sterling trades generally lower today after latest YouGov polls showed there is still possibility of a hung parliament after Thursday's election. Though, loss is relatively limited as a Conservative majority remains the base case. For now, focus will firstly turn to FOMC rate decision and economic projections. As Fed...
Markets Staying in Risk Off Mode Despite News of US-China Tariffs Delay
Global stock markets are generally under pressure today. There is some lift from a WSJ report that US and China are laying the ground work for a delay in December 15 tranche of tariffs But the recovery in sentiment is so far limited. In the currency markets, Australian and...
Markets Staying in Tight Range as UK GDP and German ZEW Awaited
Trading in the forex markets remain quiet in Asian session today, with major pairs and crosses staying in yesterday's range. Canadian Dollar is lifted mildly by positive news regarding USMCA, but gains are so far limited. New Zealand Dollar is, for now, the strongest one, followed by Sterling. On...
Euro Rises Mildly as Investor Confidence Improved, Overall Markets Quiet
Markets continue to trade in rather subdued manner today, awaiting the key events ahead, including three central bank meetings, trade deal and UK elections. Meanwhile, Euro is trading generally higher, slightly, as supported by improvement in investor confidence. Sterling is also firm but fails to extend earlier gains. On...
Sterling Rises as Conservative Extends Lead ahead of Elections
Sterling strengthen broadly in relatively quiet markets today. Ahead of Thursday's election, Conservative's lead over Labour jumped back to 14pts according to a latest poll. Traders continue to be optimistic on a Conservative majority to finally rectify the EU withdrawal agreement for Brexit. While US stocks jumped sharply on...
Trade War, Election, Fed and ECB in a Week of Guaranteed Volatility
It was a rough ride in the financial markets last week. Stocks were initially pressured in concerns over US-China trade negotiations. US President Donald Trump threw the idea that waiting until after 2020 election before closing the phase one deal. Sentiments were additionally weighed down by a string of...
Dollar Jumps on Strong Job Growth, Loonie Pressured after Employment Data
Dollar rebounds broadly in early US session after positive surprise in job data. However, upside is relatively limited at the time of writing, capped by disappointing wage growth. For now the greenback remains the weakest one for the week. Canadian Dollar's fortune reversed after much worse than expected employment...
Dollar Staying Pressured, Looking Non-Farm Payrolls for Savior
Dollar remains the weakest one for the week as markets head towards weekly close. The greenback was weighed down by a string of weaker than expected economic data. Additionally, as December 15 natural deadline looms, it's still uncertain whether US and China could complete the phase one trade deal...
Canadian Dollar Jumps Again on BoC Lane’s Comments, Sterling Also Firm
Canadian Dollar surges broadly again today as a top BoC official's comment further dismiss the chance of rate cut. Sterling is following as the second strongest on election and Brexit optimism. On the other hand Australia Dollar is the weakest on as weighed down by poor retail sales data,...
Dollar Sinks on Poor Data and Trade Uncertainty
Dollar was sold off deeply this week on a string of weaker than expected economic data, as well as uncertainty over US-China trade deal. ISM indices and ADP private jobs all disappointed and the greenback's hope now cling on Friday's non-farm payrolls. There are conflicting reports regarding US-China trade...