Market Overview
Dollar Strikes Back as Investors Reevaluate Global Central Bank Paths
Dollar mounted a significant comeback overnight, demonstrating resilience amidst surge in risk-on sentiment that propelled the three major US stock indexes to record highs. The greenback continued to extend gains in Asian session, surpassing pre-FOMC highs against European majors.
The shift in sentiment came in wake of SNB's unexpected rate...
Swiss Franc Tumbles on SNB Cut; Sterling Falters as Hawks Retreat
Swiss Franc is trading as the day's most significant loser in the wake of SNB's surprising decision to cut interest rates. This move, along with a substantial downward revision of inflation forecasts, is seen by some economists as a strategic effort by SNB to alleviate the burden of a...
Dollar Wanes as Fed Sticks to Three Cuts Projection; Aussie Jumps; BoE and SNB Next
Dollar took a nosedive overnight as investors were apparently relieved that Fed is still on track to cut interest rates three times this year. The odds for a June cut as indicated by fed fund futures also jumped back to above 70%. The positive sentiment shoot major US stocks...
Dollar Holds Strength Ahead of Fed Dot Plot Update
Dollar stands firm as the day's strongest currency, with the financial markets on edge for the Fed's impending announcement. While interest rate is widely anticipated to hold steady at 5.25-5.50%, the spotlight is on the potential adjustments to Fed's dot plot. December's projections hinted at three rate cuts for...
Yen Selloff Intensifies, Attention Shifts to UK CPI and FOMC
Japanese Yen's decline intensified today and it's on the verge of breaking to new historical low against the greenback. Japan's stock markets are on holiday today, but the strong rally in Nikkei yesterday, which surged 40k psychological mark again, was significant. The robust risk-on sentiment within Japan and its...
Canadian Dollar Dives on CPI Surprise, Market Eyes Earlier BoC Rate Cut
Canadian Dollar falls sharply in early US session, triggered by an unexpected decline in Canada's headline CPI and a more significant than anticipated slowdown in core inflation measures. This trend of disinflation is likely to reassure BoC that its efforts to curb inflation are bearing fruit, possibly at a...
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...