Market Overview
Yen in Pole Position as US NFP Awaited
Yen is stealing the show in the week of heavy weight events, powering up broadly with help of broad based decline in US and European treasury yields. Swiss Franc is following together with Euro while Dollar is just mixed. On the other hand, Sterling is the worst perform despite...
Euro and Sterling Down after ECB and BoE, Yen Rises on Falling Yields
Euro retreats notably even after ECB hikes 50bps and expresses the intention to do the same in March. Sterling is also trading lower after BoE hikes by 50bps as expected. Yen is currently the stronger one with help from extended fall in US and European benchmark treasury yields. Dollar,...
Dollar Down on Risk-On Sentiment after FOMC, BoE and ECB Take Center Stage
Dollar weakened broadly overnight, more on risk-on sentiment than FOMC rate decision. Yet, selloff was not particularly fierce except versus Euro and Swiss Franc. In particular, Sterling is clearly lagging behind. Judging from the upside breakout in EUR/GBP, traders are probably guarding against the possibility of a dovish twist...
Dollar Falls after ADP Miss, Gold To Try Breakout ahead of Fed
Dollar falls broadly after ADP job data missed expectations, while traders await FOMC rate decision. There is no doubt that Fed will hike interest rate by 25bps today and signals that tightening is not finished. The key questions about the terminal rate, and how long interest rate will stay...
Sentiment Resilient, Dollar Mixed, Fed Hike Awaited
Dollar is trading in mixed manner as focuses turns to FOMC rate hike today. The recovery attempt in the greenback this week was rather disappointing. In particular, it has conceded much ground against commodity currencies and Swiss Franc. Overall, risk sentiment will likely continue to dictate the moves in...
Dollar Recovering But Could It Last? Euro Mixed after GDP
Dollar attempted to extend recovery today but once again lacked follow through momentum. The greenback is mildly supported by slight risk aversion, but lags behind Yen and Swiss Franc. For now, Australian Dollar remains the worst for the day on poor retail sales data, followed by Canadian and New...
Markets Stay Cautious Shrugging Positive China Data, Dollar and Yen Recover
Yen and Dollar are both in recovery mode in Asian session, as investor continued to turn cautious ahead of the three central bank meetings of Fed, BoE and ECB later in the week. Asian markets shrugged of better than expected PMI data from China, which indicated a return to...
Euro Shrugs Poor German GDP, But Overall Markets Tread Water
Overall, the forex markets are pretty quiet today. Euro rises broadly despite poorer than expected German GDP. Yet, there is no breakout from familiar range. Swiss Franc is tracking Euro closely, followed by Dollar. Australian Dollar is so far the worst performer, without follow through downside momentum. Yen is...
Markets Turning Cautious; Fed, ECB and BoE ahead, With Lots of Data
Sentiment in Asia was mixed today. Most markets have turned cautious ahead of the central bank bonanza this week. At the same time Hong Kong stocks tumble deeply, as led by Chinese tech giants. In the currency markets, Australia Dollar is currently leading commodity currencies lower. Yen is the...
US PCE Inflation Cooled, Markets Steady, Dollar Sluggish
The markets are steady after US data showed further cooling in headline and core PCE inflation. While the decline in Dollar has been slowing somewhat, there is no committed buying for a sustainable rebound. The greenback is likely to end the week mixed. Trade might be relatively subdued for...
Dollar Eyes PCE Inflation Data, Ready for a Bounce?
Risk-on rallies appear to be taking a breather ahead of the weekend. While US stocks jumped overnight, Asian markets are just mixed. Focuses will turn to US PCE inflation data today. Dollar might try to bounce if there is upside surprise in the report. Yet, the big events are...
Solid Data Support Risk Sentiment, Dollar Struggles
US futures trade higher after a batch of solid economic data. Positive risk sentiment are lifting commodity currencies in general, in particular Aussie. Dollar and Yen are turning softer while European majors are mixed, with Euro lagging behind. In the weekly picture, while Aussie is still the strongest, Dollar...
Aussie Staying Strong With Positive Risk Sentiment, Dollar Eyes GDP
Australian Dollar strengthens further with mildly positive risk sentiment in Asia. But other major currencies are sluggish. Yen is still recovery but apparently lacks committed buying. Canadian Dollar is staying soft after yesterday's BoC hike, but selloff is relatively limited. Euro is having a slight upper hand against Dollar,...
Euro Softens Despite Improvement in German Business Sentiment
Australian Dollar remains the strongest one for today, maintaining most of post-CPI gains. But Yen is catching up with broad based recovery. Euro softens despite improvement in German business climate, and Sterling is trading lower too, while Kiwi stays as the worst. Dollar and Canadian are mixed awaiting BoC...
Aussie Soars, Kiwi Tumbles, Loonie Awaits BoC
Australian Dollar rises broadly today after strong CPI data supports continuation of tightening by RBA. On the other hand, New Zealand CPI didn't accelerate as RBNZ projected, and markets are lowering their expectation on the terminal rate. Kiwi, thus falls broadly. Canadian Dollar is firm as focus turns to...
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...