Market Overview
Sterling Falls on Poor PMIs, Euro Resilient
Sterling falls broadly today and poor PMI data indicates that recession is continuing in the UK. Comparatively, Eurozone PMIs argue that it might have escaped recession. For now, the Pound is the worst performer for the day, followed by Swiss Franc, and then Aussie. Yen is the strongest, trying...
Dollar Softens Mildly in Subdued Trading, Focus Turns to PMIs
Dollar softens mildly again in rather subdued trading in Asia. Many markets are still on Lunar New Year holiday. For now, Australia Dollar is the relatively stronger one for the week, followed by New Zealander. Euro is maintaining some of this week's gains, but there is no follow through...
Dollar Rebounding With Yields, Euro Pares Gain
Dollar rebounds broadly in early US session, following benchmark treasury yields higher. But at the time of writing, Aussie is the strongest as supported by positive risk sentiment. Euro follows as it pares back some gains despite more hawkish ECB comments and an upbeat Bundesbank monthly report. Yen is...
EUR/USD Resumes Uptrend on Hawkish ECB Comments
Euro opens the week higher as support by hawkish comments from ECB officials over the weekend. Overall, it's more likely for ECB to deliver at two more 50bps hike before slowing down, despite some market speculations. Dollar and Yen turned softer again. Trading is subdued, nevertheless, with many Asian...
Yen Down, Nikkei Up, Yield Curve Distortion Improved
BoJ and Davos were the major focuses of last week. Much volatility was seen in Nikkei, JGB yields, and Yen. As dusts settled, the Japanese currencies ended as the worst performer, but closed inside prior week's range. Australian Dollar was the next weakest after poor job data. Dollar was...
Yen Decline Continues after Dovish BoJ Kuroda
Yen's weakness continues into US session after BoJ Governor Haruhiko Kuroda repeated his dovish stance. Swiss Franc is also trading notably lower, reversing some of this week's gains. Aussie, Kiwi are extending recovery but there is no clear upside momentum. For the week, Sterling is still the strongest, followed...
Yen Weakens Despite Inflation Hitting Four-Decade High
Yen weakens broadly in Asian session despite data showing that inflation hit a four-decade high. Speculations on any BoJ move should cool for a while, given that there is no meeting until March. There is room for Yen to correct lower to digest recent rally. Meanwhile, the Japanese currency...
Euro Supported by Hawkish ECB, Commodity Currencies Down
Euro is lifted slightly by hawkish comments from ECB officials, as well as the meeting accounts. But overall, it's risk-on sentiment that matters more for now, supporting Yen and Dollar too. Commodity currencies are so far the worst performers, with Aussie also weighed down by poor job data. Sterling...
Aussie Tumbles after Poor Job Data, Dollar Recovering on Risk Aversion
Australian Dollar tumbles broadly today after weaker than expected job data. Overall risk-off sentiment is also pressuring commodity currencies. On the other hand, Yen and Swiss Franc are strengthening together with Dollar. As for the week, Swiss Franc and Sterling are currently the best performer, thanks to additional support...
GBP/USD Ready for Upside Breakout, Yen Fights Back
Sterling and Swiss Franc rise notably today, with help from the buying against Euro. The common currency is weighed down by talks of slower ECB tightening in March, but remains resilient against Dollar. Nevertheless, the Pound and Swissy are outshone by Kiwi for now. Yen is starting to reverse...
Yen Dives after BoJ, Euro Looking Vulnerable
Yen falls broadly after BoJ defied some speculations and kept yield cap unchanged today. The announcement also sent Nikkei sharply higher while shot 10-year JGB yield down. Nevertheless, it's still a bit early to confirm reversals in Yen crosses. Meanwhile, commodity currencies are trading firmer today. European majors are...
European Majors Gain on Solid Data, Yen Consolidates ahead of BoJ
European majors are trading generally higher today, with help from strong improvement in Germany economic sentiment as well as solid UK job data. Commodity currencies are turning softer, with Canadian Dollar shrugging off CPI data. Dollar is mixed despite sharp decline in New York State manufacturing data. Yen is...
Markets in Range and Focus Turns to UK Employment and Canada Inflation
Markets are generally stuck in tight range in Asian session today, with better than expected data from China providing no inspirations. Dollar is staying in consolidations in tight range, with no sign of a sustainably rebound yet. Similarly, Yen is in retreat in rather shallow manner. Volatility might start...
Dollar Recovering Slightly as Markets Turned Mixed, Treading Water
The forex markets turned mixed with an ultra-light economic calendar today, while the US is on holiday. Dollar is recovering slightly but it's outperformed by Swiss Franc and Canadian. Yen is paring some of recent gains, as eyes turn to Wednesday's BoJ policy decision. Sterling and Aussie are turning...
Yen Firms Up after Strong PPI, Dollar Staying Pressured
Yen firms up against Dollar in Asian session today, after PPI report adds more bullets for BoJ to start tweaking monetary policy. Investors in Japan are also feeling the risk of stimulus exit, and push Nikkei down more than -1%. Nevertheless, Yen is overall mixed for now. Aussie and...
USD/JPY Dived on Fed and BoJ Expectations, More Downside But 120 Will Be a Bit Stretched
Dollar was sold off broadly last week as a 25bps rate hike by Fed in February is now pretty much a done deal, after CPI data. On the other hand, Yen staged a strong rally on speculations that BoJ is now much closer to exit of ultra-loose monetary policy....
Dollar Trying to Recover, Except Versus Yen
Yen's rally continues today on talks that BoJ could tweak the yield curve control again next week. It's also supported by extended decline in US and European benchmark treasury yields. Meanwhile, Dollar is trying to fight back as US futures are taking dive, reversing some of yesterday's post-CPI gains....
Yen Rallies on Narrowing Yield gaps, Dollar Recovering Slightly Elsewhere
While Dollar was sold off overnight, the decline was less severe than originally expected. Indeed, the greenback is currently just the second worst performer for the week, following Swiss Franc. The rally in commodity currencies was also less than convincing with Kiwi and Loonie as third and fourth weakest....
Dollar Dives as Cooling Inflation Gives Nod to Slower Fed Tightening
Dollar declines sharply after US data showed consumer inflation slowed notably in December as expected. The development reinforces expectation for Fed to further slowdown tightening in February with a 25bps hike. Yen is so far the strongest one for the day, as lifted by decline in US and European...
Dollar Down But Not Out Yet as CPI Awaited
At this point so far, Euro is the strongest one for the week, while Swiss Franc is the weakest, thanks to the upside breakout and rally yesterday. Dollar is more on the soft side too but there is still no clear follow through selling after the decline on Monday....