Market Overview
Yen Beat Dollar as the Strongest in Yields Driven Forex Markets
Dollar ended last week broadly higher except versus the Japanese Yen. While economic data from the US were generally disappointing, they were not bad enough to alter Fed's path of three rate hikes this year. Just that, the data didn't add to the chance of the fourth hike in...
It’s Still the Yen’s Show after US Non-Farm Payrolls and Wage Growth Missed Expectations
Dollar fails to regain spot light after worse than expected job data. Non-farm payroll showed 164k growth in April only, below expectation of 194k. Prior month's figure, though, was revised up from 103k to 135k. Unemployment rate dropped to 3.9%, down from 4.1% and beat expectation of 4.0%. That's...
Dollar to Take Back the Stage from Yen and Aussie as Non-Farm Payrolls Loom
Initial selloff in the US stock markets overnight shot up Japanese Yen. DOW initially dipped to as low as 23531.31, suffering near 400 pt loss, but reversed and closed up 0.02% at 23930.15. Nonetheless, S&P 500 and NASDAQ closed in red, down -0.23% and -0.18% respectively. Yen pared back...
Yen Stealing the Show as Dollar Consolidates, Euro and Sterling Tumble on Weak Data
Dollar is trading with a soft tone today as traders are cautiously waiting for tomorrow's job report. And just like how it was in recent months, wage growth will be more important than the headline number. For now, Yen and New Zealand Dollar have stolen the spotlight as both...
Dollar Retreats after FOMC; US, Eurozone and UK Data Awaited
Dollar trades generally lower in Asian session as it has turned into correction mode. While slightly more hawkish than expected, the FOMC statement released overnight provided little inspiration to the markets. Major US equity indices ended in red, with DOW dropped -0.72%, S&P 500 down -0.72% and NASDAQ lost...
Euro and Sterling Recovered on Economic Data, Dollar Patiently Awaits FOMC
Dollar is trading slightly lower today as markets digest recent against ahead of FOMC rate decision and statement. Slightly better than expected ADP employment is shrugged of by the markets. Euro survived the test of GDP data and recovers mildly. Sterling also gets some support from better than expected...
Dollar Firm as FOMC Awaited, Euro and Sterling Shaky ahead of GDP and PMI
After yesterday's strong rally, Dollar retreats mildly today as markets await FOMC decision. For the week, the greenback remains the strongest one. Canadian Dollar follows as the second strongest, riding on better than expected GDP data. Sterling, on the other hand, is trading as the weakest one, as weighed...
Dollar Resuming Recent Rally, Sterling Tumbles after PMI, Canadian Up on GDP
Dollar resumes recent rally today and breaks last week's high against all major currencies except Canadian Dollar. In particular, GBP/USD has taken out 1.3711 key support level after UK PMI manufacturing missed market expectations. The development is in line with the view of medium term reversal. AUD/USD also breached...
Australian Dollar Steady after RBA Stands Pat, UK PMI Manufacturing to Watch
Australian dollar is steady after RBA left cash rate unchanged at 1.50% as widely expected. Governor Philip Lowe continued to be confident on the economy. He noted in the accompanying statement that "the bank's central forecast for the Australian economy remains for growth to pick up, to average a...
Dollar Staying Range Bound an PCE Matched Expectations, Sterling Rebounds after Initial Selloff
Dollar remains firm in early US session after release of personal income and spending data. But now, the green back is held below Friday's high against all but Sterling. Canadian Dollar follows as the second strongest. The Pound was initial sold off earlier today but then quickly rebounded. It's...
Forex Markets Steady as Heavy Weight Data from US, Eurozone and UK Awaited
The forex market open the week rather steadily with major indices stuck inside Friday's range. Aussie is generally lower followed by Yen. Meanwhile, Sterling, Dollar and Swiss Franc are generally higher. But the picture could quickly change as volatility comes in. The week ahead is full of important events...
Dollar and Yield Reached Critical Junctures after Strong Rally, Determining Events ahead
Dollar was given a powerful boost last week on a couple of factors. Firstly, 10 year yield extended recent bull run and hit 3% level for the first time since 2014. Secondly, Euro was sold off steeply after the confusing messages from ECB President Mario Draghi during the post...
Dollar Rally Exhausted after Multiple Boosts this Week, Sterling and Euro Tumbled on GDP Misses
Dollar's rally seem to be a bit exhausted in early US session. After all, the greenback was lifted firstly by yield earlier this week, then by ECB yesterday. Additional buying jumped in after French GDP miss and than UK GDP miss in European session. Hence, even though the greenback...
US and UK GDP to Take Center Stage, BoJ Stands Pat
Dollar is trading mildly lower today but remains the overwhelmingly strongest one for the week. The greenback was, on the one hand, pushed higher overnight thanks to the steep post ECB selloff in Euro. Dollar index hit as high as 91.63 and continued to build up the case of...
Euro breaks down after reassessing ECB Draghi, where next?
We've pointed out in the quick comment updates that there was no follow through buying in Euro despite the rebound attempt. That rebound was initially triggered by ECB President Mario Draghi's introductory statement that talked about the "solid and broad-based expansion" despite weaker than expected data. However, there was...
Euro Holding on to 1.2154 against Dollar on Cautiously Upbeat ECB Draghi, Dollar Weakens as Yields Retreat
Euro recovers against Dollar after ECB president Mario Draghi tried to play down concerns over recent weak Eurozone data. But his usual cautiousness is so far capping Euro buying. On the other hand, Dollar's rally also loses some steam, in particular against Yen as 10 year yield dips back...
EUR/USD Eying 1.2154 Key Support as Markets Seek ECB Draghi’s View on Q1 Slowdown
Dollar retreats mildly in Asian session today but remains the strongest one for the week. US 10 year yield finally took out 3% level overnight with some conviction. TNX hit as high as 3.035 before closing at 3.024, up 0.041. The development helped lifted Dollar Index above key near...
Dollar Surges as 10 Year Yield is Having Another Take on 3%
Dollar jumps again today as 10 year yield is having another attempt at 3% handle today. The greenback is trading above yesterday's high against all major currencies except Sterling. And for now, Yen is actually not the weakest one. Instead, commodity currencies and Swiss Franc are the worst performers....
Intermarket Movements to Drive Forex Trading with Light Calendar Today
Dollar traded mixed overnight as while 10 year yield breached 3% handle, there was no follow through selling in bonds that kept it above that level. On the other hand, the situation was complicated by the selloff in stocks due to earnings, which propelled Japanese Yen briefly higher. The...
Dollar Turned into Consolidation, German Ifo Miss Gives Euro No Support
Dollar engages in consolidative trading today as markets digest recent sharp gains. Also, as pointed out before, 10 year yield should a sign of hesitation ahead of 3%, and it might take a bit more time to overcome this level. While housing data is a focus in the US...