Market Overview
Inflation Data Fails to Stir Markets; Canadian Dollar Unmoved
The inflation data from Eurozone and the US has left traders somewhat disappointed, as it triggered minimal volatility in the markets. Eurozone headline inflation slowed more than anticipated, while core inflation aligned with consensus. In the US, both headline and core PCE inflation fell short of expectations. Canadian Dollar...
China’s Robust Services Data Boosts Markets; UK Joins CPTPP, Strengthening Sterling
As March comes to an end, strong services data from China has invigorated the markets, providing additional support to Australian and New Zealand Dollar. Sterling is further bolstered by the news that the UK has secured a deal to join the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership...
Rising Euro Lifts Sterling and Swiss Franc after German Inflation Data
Euro is on the rise today, pulling Sterling and Swiss Franc along with it. Slightly higher-than-expected German inflation data is sparking speculation of a potential upside surprise in Eurozone CPI tomorrow. This development, coupled with recent hawkish rhetoric from ECB officials, suggests further tightening are on the horizon, provided...
Canadian Dollar Shines in Quiet Markets, Traders Await Tomorrow’s Inflation Data
In the quiet Asian session, Canadian Dollar continues to outperform, while positive risk sentiment is providing a slight boost to Australian Dollar, though not New Zealand Dollar. Euro is drawing support from hawkish remarks by ECB officials but lacks strong follow-through buying. Yen, Swiss Franc, and Dollar remain the...
Euro Gains as ECB Official Signals More Rate Hikes Ahead, Yen Broadly Pressured
Euro is trading mildly higher today following indications from a key ECB official that more interest rate hikes are in the pipeline for the central bank. Concurrently, the improving market sentiment across Europe is lending support to both Sterling and the Swiss Franc. However, Canadian Dollar emerges as the...
Oil Prices Rebound Boosts Canadian Dollar; Risk Sentiment Improve
Dollar, Japanese Yen, and Swiss Franc are under selling pressure this week amid improving risk sentiment. Yen is particularly weighed down by the extended rebound in treasury yields, while Swiss Franc is pressured by sell-offs against Euro and Sterling. Currently, the Canadian Dollar leads the pack for the week,...
Euro and Sterling Rise on Rebounding European Treasury Yields
As European treasury yields rebound, the Euro and Sterling gains against Dollar and Swiss Franc today. However, their upside remains limited by near term resistance. Also, momentum against commodity currencies appears less pronounced. The greenback is trading lower amid generally stabilizing risk sentiment, but market fluctuations remain limited, with...
Forex Markets Grapple with Uncertainty and Ambiguity, Sterling Ready for Breakout?
Forex markets are currently navigating a landscape of uncertainty, as mixed currency performance contributes to a lack of clear direction. Dollar has experienced a decline in Asian session, but still hovers within familiar boundaries against other major currencies. Meanwhile, Euro has managed to strengthen against the greenback but appears...
Gold Struggles Below 2000, Euro Shrugs German Ifo
The financial markets are sending mixed messages today, with risk sentiment seemingly improving as European indexes and US futures trade higher. US and German 10-year yields are also recovering. However, the currency markets paint a different picture, with Swiss Franc leading as the best performer, followed by Canadian Dollar...
Forex Markets Quiet as Focus Turns to Inflation Data This Week
The forex markets have been relatively quiet during today's Asian session, with currency pairs staying within Friday's range. Major stock indexes are also demonstrating mixed performance in a tight range. Inflation data from the Eurozone and the US will be closely monitored this week. Although these figures are crucial...
Market Confusion Reigns While Yen Continued Domination
Last week's financial landscape was far from clear-cut. While it wasn't a definitive risk-on market, investors seemed reluctant to abandon US shares completely. The markets found themselves mired in confusion, struggling to make sense of the relentless barrage of headlines detailing bank crises that began with Silicon Valley Bank,...
Market Turbulence Returns as Deutsche Bank Shares Plummet, Shaking Currency Markets
The European session has been marked by a resurgence of market turbulence as Deutsche Bank shares nosedive, fueled by a surge in its credit default swaps. This development has had a domino effect on major European indexes and US futures, both experiencing significant drops. Investors are seeking refuge in...
Yen Takes Center Stage as Falling Yields and Strong Core-Core Inflation Boost Gains
Yen is drawing some attention in today's Asian trading session, supported by declining benchmark US and European treasury yields and robust core-core inflation in Japan. Risk-sensitive currencies, such as Sterling and commodity currencies, are under pressure as major Asian indexes trade lower. Dollar is recovering against the Euro but...
Muted Reactions to SNB and BoE Rate Hikes, Dollar Underperforms
Market's response to the rate hikes by SNB and BoE has been relatively muted. Following today's rate decisions, SNB signaled the possibility of further tightening, while BoE remains open to either a hike or a pause in the future. Dollar is currently the day's worst performer, followed by Swiss...
Euro Leads Gains as Dollar Struggles Post-FOMC; BoE and SNB Decisions Take Center Stage
Dollar faced broad sell-off overnight after the less hawkish than expected Fed rate hike and press conference, with Euro emerging as the biggest winner against the greenback. Sterling and Swiss Franc followed suit, while Australian and New Zealand dollars also strengthened but lagged on a weekly basis.
Attention now shifts...
Sterling Rises on Strong UK CPI Data and BoE Expectations, But FOMC Next First
Sterling is performing strongly after the release of stronger than expected UK CPI data, indicating a rise in inflation rather than a slow-down in February. As a result, it is highly likely that the BoE will hike interest rates by another 25bps during their meeting tomorrow. However, there is...
Financial Markets Exude Optimism, Awaiting Crucial FOMC Rate Decisions
As the mood in the financial markets seems to be rather upbeat, Asian markets are riding the wave of positivity, tracing the upward trajectory set by their US counterparts. All eyes are on FOMC rate decision today, with most expecting a 25 basis point increase. However, uncertainty lingers as...
Euro Strengthens Despite Poor German Economic Sentiment
Euro rises broadly today partly as overall sentiment stabilized. Technical also play a role as the common currency defended near term support levels against both Sterling and Aussie. Poor Germany economic sentiment data was basically ignored by the markets. Market participants appeared to dismiss the poor economic sentiment data...
Aussie Falters after RBA Minutes; Canada CPI Awaited
Australian Dollar is declining broadly as RBA minutes hinted at the possibility of a pause during their next meeting. Meanwhile, Yen has managed to hold on to the some gains it made earlier this week and appears poised for further rallying, particularly against commodity-based currencies.
Both Euro and Sterling have...
Swiss Franc Weakens While Euro and Sterling Firm, No More Safe Haven?
Market reactions to the ongoing banking crisis reveal a shift away from Swiss Franc, traditionally considered a safe-haven currency, as Credit Suisse shares lose over two-thirds of their value following the acquisition announcement by UBS. The broader markets in Europe are, however, relatively steady. Euro and Sterling are experiencing...