Market Overview
Yen Extending Rally While Euro and Swiss Franc Stay Firm
Japanese Yen is extending its rally in the early US session holding on to its gains and emerging as the second strongest currency for the week, just behind Swiss Franc. Despite persistently above-target inflation data, it remains unlikely that BoJ will make a shift in monetary policy next week....
Yen Rises on Persistent Inflation, Focus Turns to PMI Data and Canada’s Retail Sales
Japanese Yen rose broadly in today's Asian trading session following the release of CPI data, indicating inflation remains persistently above BoJ's target. While it is still early for BoJ to make any changes to monetary policy, a case for a shift later this year is building. Meanwhile, Dollar and...
Swiss Franc Gains Against Euro, Kiwi Struggle Continues
Swiss Franc is currently the strongest performer for the day, showing a notable gain the Euro. Japanese Yen and Australian Dollar follow closely, indicating that the market moves are not predominantly driven by risk aversion. In contrast, New Zealand Dollar is the weakest, as lower-than-expected inflation data increases hopes...
NZ Dollar Weakens on Lower Inflation Data, Dragging Down Aussie
New Zealand Dollar dropped broadly in Asian session today after a lower-than-expected consumer inflation reading increased speculation that the next RBNZ rate hike may be the last in the current cycle. This development also pulled Australian Dollar down, making them the day's worst performers so far. In contrast, Swiss...
Sterling Strengthens on Inflation Data, More BoE Hike(s) Expected
Sterling climbed broadly today following the release of data showing that March's inflation slowed less than expected, with CPI remaining in double digits. This development supports expectations of a further 25bps rate hike by BOE in May, with some speculating that an additional increase could bring the terminal rate...
Markets Lack Direction as UK CPI Data Looms; Sterling’s Path Hinges on Inflation Numbers
The markets have been somewhat directionless this week, with most major currencies remaining within last week's trading ranges against one another, excluding a few Yen pairs. US stock indexes are consolidating in tight ranges with minor pullbacks, while the 10-year yield struggles below a short-term resistance level. Gold prices...
Canadian Dollar Weakens on Cooling Consumer Inflation, Dollar Reversing Gains
Canadian Dollar weakens broadly in early US session, after data showed that consumer inflation slowed notably in March, in line with market expectations. However, Dollar has emerged as the day's worst performer, reversing some of this week's gains, even when compared to Yen. In contrast, Australian and New Zealand...
Australian Dollar Rises on RBA Minutes and Strong Chinese GDP Data
Australian Dollar is gaining ground today, supported by RBA minutes that revealed a rate hike was discussed during the April meeting. Encouragingly, stronger than expected Chinese GDP data is also contributing to the Aussie's rise. Meanwhile, Dollar's momentum has waned after yesterday's rally, and Yen remains under broad pressure....
Market Themes Abound, But No Clear Dominant Driver Emerges Today
Multiple themes are unfolding in the markets today without any one taking center stage. Dollar is gaining strength, particularly against Yen, supported by an extended rebound in Treasury yields. Euro, on the other hand, is losing ground to the Pound after failing to break through a key near-term resistance...
Yen Extending Decline, CPIs and PMIs to Take Spotlights
Asian trading remains relatively subdued today, with the exception of Yen's ongoing selloff. Meanwhile, Dollar attempts a weak recovery, while Euro and New Zealand Dollar are softer for now. The focus may shift away from the greenback this week, as significant data releases from other regions take center stage....
Dollar’s Fate Uncertain Amid Mixed Week: Risk Sentiment, Stocks, and Bonds in Focus
Dollar fell to its lowest level of the year and breached a critical support, after being under pressure for most of the week. Yet, it staged a recovery towards the end, closing mixed only. Decelerating US inflation data was welcomed by risk market investors, but a lower terminal rate...
Dollar Attempts Recovery After Poor Retail Sales, But No Bottoming Confirmed
Dollar is attempting to rebound in early trading sessions, as market sentiment is shaken by disappointing US retail sales data. Furthermore, a top Fed official has cautioned that interest rates could remain high for a more extended period than previously anticipated by the market. Nevertheless, the greenback continues to...
Dollar Dives as Disinflation Solidifies Fed’s Tightening Cycle End; Stocks Rise
As disinflation process in the US picks up steam, Dollar continues its relentless descent, fueling the belief that Fed's tightening cycle is close to its curtain call. This evolving sentiment has not only lifted US stocks overnight but also spilled over into Asian session, painting a positive picture for...
Dollar Selloff Deepens as Weak Upstream Inflation and Job Data Push Euro to New Highs
Dollar's decline continues in early trading, fueled by weaker-than-expected upstream inflation and job data, pushing the greenback to its lowest level against Euro this year. The Swiss Franc emerges as today's biggest winner, bolstered by falling benchmark yields in Germany and the UK. Meanwhile, Euro benefits from hawkish remarks...
Aussie Lifted Slightly by Job Data, Dollar Loss Limited by Hawkish FOMC Minutes
Dollar remains somewhat soft in the Asian trading session, though it hasn't seen any follow-through selling. Hawkish FOMC minutes have partially offset the impact of consumer inflation data on the currency. The broader financial markets also lack a clear direction, as US stock indexes closed lower after initial rally....
US Inflation Data Spurs Market Optimism, Dollar Falls Broadly
The overall set of US consumer inflation reports appears to have been well received by investors. DOW futures jumped over 200 points following the release and maintained most of the gains before open, while treasury yields tumbled at both short and long ends. Although Fed is still on track...
Market Volatility to Pick Up With US CPI and BoC Decision Featured
Market volatility could see a significant uptick today with three heavyweight events on the schedule. US consumer inflation data for March has the potential to shift market expectations regarding the Fed's rate path. While headline CPI is expected to drop for the ninth consecutive month to 5.2%, core inflation...
European Majors in Spotlight as Eurozone Investor Confidence Improves
European majors are taking center stage today as markets reopen after holidays. Although not spectacular, Eurozone data revealed improvements in investor confidence, which has bolstered overall market sentiment. Major European indexes and benchmark treasury yields are trading slightly higher. In contrast, commodity currencies and Dollar are trading on the...
Aussie Gains on Improved Consumer and Business Confidence, Yen Under Pressure
Australian Dollar is having a broad recovery in Asian session today, bolstered by improvements in both consumer and business confidence data. While the rally's strength is still limited, Aussie appears to have some room for further upside before encountering near-term resistance levels. European majors follow as the next strongest,...
Subdued Trading Continues, Yen Down on Dovish New BoJ Governor
Today's trading remains relatively subdued, as many markets are still closed for holidays. Canadian and US Dollars are showing mild strength, while Yen struggles as the weakest currency, followed by New Zealand Dollar and Euro. Sterling, Australian Dollar, and Swiss Franc exhibit mixed performance. Most pairs and crosses stay...