Market Overview
Contrasting ECB/BoE Comments Drive Euro Higher While Aussie Lags Behind on Weak Data
Two major themes are vying for attention today. Euro has seen broad gains following hawkish comments from Bundesbank President Joachim Nagel. In contrast, the remarks of BoE Governor Andrew Bailey have left Sterling struggling to keep pace. As these European majors trade blows, the Swiss Franc has been pushed...
China Data Lifts Sentiment, Dollar in Retreat
Asian markets traded on a positive note as sentiment was lifted by better-than-expected economic data from China. The strong performance of Hong Kong stocks was a clear indication of the positive outlook Commodity currencies staged a remarkable rebound, as led by New Zealand Dollar. In contrast, the Yen and...
Sterling Extends Broad-Based Rally, Yen Stays Pressured
Sterling's broad-based rally continues today and shows sign of upside acceleration. The Pound is additionally added by selloff in Swiss Franc, which is also seen against Euro. Dollar is currently the third strongest for the day as supported by resilience in benchmark treasury yields. Meanwhile, Yen and Swiss Franc...
Yen Down Against Euro and Sterling, Pressing Support Against Dollar
Markets are generally quite in Asian session today, in consolidation mode. Australian and New Zealand Dollar remain the worst performed. While Dollar is recovering slightly, it's trading below last week's high, except versus Aussie and Kiwi. Sterling is supported by hope of a Northern Ireland deal with EU but...
Futures Up, Dollar Down after Mixed Durable Goods Data, Sterling Flexing Muscles
US futures climbed following the release of mixed durable goods orders data, leading to a decline in Dollar, which reverses some of last week's gains. However, the positive sentiment is not bolstering the commodity currencies, with New Zealand and Australian Dollars performing the worst for the day. Meanwhile, Sterling...
NZD Down after Poor Retail Sales, USD Extending Rally
Commodity currencies are experiencing selling pressure in Asian trading due to mild risk off sentiment. New Zealand Dollar is under added pressure following poor retail sales data. US Dollar and Japanese Yen are currently among the stronger currencies, with the latter showing little reaction to the dovish remarks made...
Dollar Jumped on Fed Bets, Next Few Weeks Crucial
Dollar rose broadly last week and ended as the strongest one, as markets added bets on a higher Fed terminal rate after re-acceleration in inflation data. Sterling ended as second after strong services data, which also supported Euro, while Canadian was the third after higher than expected inflation reading....
Dollar Soars as PCE Inflation Unexpectedly Re-accelerates
Dollar jumps in early US session follow data that showed surprised re-acceleration in PCE inflation, and core. Stocks tumble at open while treasury yields rise. The situation for Fed interest to "stay longer and higher" continues to solidify. Selloff is more concentrated on Yen and commodity currencies while European...
Dollar Maintaining Gains, Focus Turns to PCE Inflation
The forex markets are generally quiet today, with most major pairs and crosses staying inside yesterday's range for now. Dollar is staying in a pole position for the week, maintaining most of the gains. The greenback will look into today's PCE inflation data for next move. Euro and Swiss...
Swiss Franc Broadly Lower, Dollar Extending Rally
Swiss Franc is trading broadly lower today while Yen and Aussie are also turning weaker. The theme for now is interesting will stay higher for longer due to resilience in major economies. Monetary policy in Japan and Swiss will be lagging behind. Dollar is staying generally firm and looks...
Dollar Breaking Out after Fed Minutes, Yen Recovering
Reaction to FOMC minutes overnight was relatively muted with major US indexes closing mixed, while 10-year yield dipped slightly. Dollar, however, is making some progress by breaking to the upside against Euro. But momentum of the greenback is so far rather weak. At the same time, Yen is trying...
Risk Sentiment Stabilized, Dollar Looks Into FOMC Minutes
Risk sentiment appears to have stabilized as markets enter into US session. There have been increasing speculation that Fed would revert to a 50bps rate hike in March. Traders might try to scrutinize FOMC minutes to get more hints on the chance. But overall, that's not the majority's opinion...
NZD Higher after RBNZ Hike, Other Commodity Currencies Soft
New Zealand Dollar rises broadly today after hawkish RBNZ hike. But other commodity currencies are lagging behind on risk-off sentiment. As for the week so far, Sterling remains the strongest, as supported by optimism on avoiding recession. Dollar followed as second as supported by rising treasury yields, and then...
Sterling Surges on Strong PMIs, Dollar Following
Sterling rises broadly today as stronger than expected PMI data indicate that near-term recession odds have fallen considerably. European majors are also trading higher after positive Eurozone PMI and Germany ZEW. Nevertheless, Dollar is following the Pound as the second strongest, with some help from risk aversion. Australian Dollar...
Markets in Consolidations, EZ and UK PMIs, ZEW and CA CPI Awaited
Markets are generally staying in consolidation mode in Asian session today. The retreat in Dollar this week is so far shallow, suggesting more upside is in favor. But the next move will still be dependent on overall risk sentiment. As for today, focuses will be on PMIs from Eurozone...
Aussie Leading Commodity Currencies Higher in Quiet Trading
Australian Dollar is leading other commodity currencies higher, in otherwise quiet markets today. US and Canada will be on holiday while European calendar is near empty. Trading should remain relatively subdued. RBNZ rate hike is a major focus this week while PMIs will also catch much attention. Yet, the...
Dollar Rose on Fed Expectations But Momentum Capped Again By Risk Sentiment
Dollar ended as the best performer last week, after data argued that the slow disinflation process could prompt Fed to tightening further to a higher terminal rate. Yet, buying remained rather uncommitted, as show in Friday's late pull back. Resilient risk sentiment continued to cap the greenback's upside, and...
Dollar Marches On With Negative Risk Sentiment
Risk sentiment appeared to have turned negative after this week's strong inflation data as well as hawkish comments from central bankers, not limited to Fed. Dollar is set to end as the best performer on expectations of higher terminal interest rate and risk aversion. But Euro is not too...
Dollar Breaking to the Upside, Europeans Relatively Resilient
Dollar appears to be finally staging a broad based upside breakout today, with help from mild risk aversion. This week's inflation and retail sales data suggested that risk to Fed tightening is more on the upside, and interest rate would at least stay high for longer. For now, Euro...
Yields Up, Stocks Down after US PPI, Dollar Trying Breakout Again
Dollar is apparently trying for a breakout in early US session after strong PPI inflation data. US futures also tumble while 10-year yield jumps. Still, The greenback is staying in range so far except versus Yen. As for the week, Yen is still the worst performer followed by Kiwi...