Market Overview
Dollar’s Dominance Continues, Sterling and Euro Accelerate Down
Dollar's robust rally persists in early US session, and gains momentum alongside the strong rise 10-year yield, now surpassing the 4.1% mark. Fed Chair Jerome Powell's hawkish comments in CBS interview air during the weekend continued to shift market expectations. The probability of Fed holding interest rate unchanged in...
Continued Ascendancy of Dollar Awaits Validation from ISM Services Data
Dollar strengthens broadly in Asian session today, extending last week's late rebound. This uptick comes in the wake of Fed Chair Jerome Powell's interview on 60 Minutes, where he reiterated the premature nature of interest rate cuts in March. He also highlighted the underlying economic resilience that affords Fed...
Investor Optimism Pushes Stocks to New Heights, While Dollar Rallies as March Fed Cut Speculation Subsides
This past week in the financial markets has been nothing short of a rollercoaster, with Dollar clinching the title of the strongest currency amidst considerable volatility. The narrative that dominated was the dissipating likelihood of a March rate cut by Fed. But at the same time, investor sentiment took...
Dollar Stages Comeback as Stellar NFP Triggers Rethink on Fed’s Easing Timeline
Dollar is staging a significant rebound in early US session, fueled by unexpectedly robust Non-Farm Payroll data. This surge was mirrored by a sharp increase in 10-year treasury yield, which is on the verge of reclaiming 4% handle. Conversely, stock futures took a downturn in response to the revelations...
Dollar Vulnerable after Dramatic Turnaround, Next Move Hinges on NFP
Dollar had a dramatic turnaround in its fortune overnight, following the significant slide in US 10-year yield, which coincided with robust rally in US stock markets. Major indexes effectively wiped out the sharp declines seen on Wednesday. Anticipation of a Fed rate cut in March has notably dwindled, with...
BoE’s Three-Way Split Vote Muddles Sterling’s Path, Yen Strength Continues
Sterling is currently trading with indecisiveness following BoE's rate decision, which has provoked mixed reactions in the markets. The decision, notable for its combination of hawkish and dovish signals, resulted in a rare three-way voting split—the first occurrence since 2008—with two members favoring a rate hike, one a cut,...
Banking Jitters Propel Yen to Forefront, Overshadowing Fed; BoE Next
In a week crowded with high-profile events like FOMC rate decision overnight and the upcoming BoE meeting today, Japanese Yen is surprisingly stealing the show as the star performer in the currency markets. This rally in Yen's can be attributed to the significant drop in global benchmark treasury yields,...
Dollar Dips on Weak ADP Jobs Data; Markets Await FOMC Outcome
Dollar weakens slightly in early US session, as dragged down by disappointing ADP private sector job data. Despite this, the downturn is contained, as market participants remain cautious ahead of FOMC rate decision later in the day. While no changes in interest rates are anticipated, considerable attention is centered...
CPI Miss Drives Aussie Down, Dollar Sees Modest Rise Pre-FOMC
Australian Dollar encountered significant headwinds in today's Asian session, weighed down by the latest Australian Q4 CPI data. The lower than expected inflation confirmed that RBA would hold interest rate unchanged in the forthcoming meeting next week. The central bank could also be finally ready to indicate completion of...
Euro Recovers as Recession Dodged in Eurozone, Aussie Softens ahead of CPI
Euro recovers broadly today, as lifted by GDP data that indicated the Eurozone economy has narrowly averted a technical recession. This positive development has also led to a notable rebound in Germany's benchmark treasury yields. Meanwhile selling pressure has shifted Sterling and Swiss Franc, both of which are ceding...
Dollar Declines as US Stocks Reach New Record, But Euro Even Weaker
Dollar declined broadly overnight, US Treasury's borrowing plan for Q1 that spurred rally in the stock market, propelling it to new record highs while simultaneously exerting downward pressure on yields. Despite this shift, the greenback remains largely within its recent trading range. Market participants seem to be holding the...
Euro Weakens on Prospects of Early ECB Rate Cut
Euro weakens broadly today amid signals from ECB officials that a rate cut cycle could commence in June, or even earlier in April. This bearish sentiment towards the common currency heightens the significance of upcoming Eurozone economic data releases, with GDP figures tomorrow and CPI data on Thursday poised...
Forex Markets in Slow Motion: Anticipation Builds for Fed, BoE and Crucial Economic Data
Tentative risk-on sentiment is perceptible in Asian session, as Japan's Nikkei rallied with energy shares lifted by rally in oil prices. Concurrently, stock markets Hong Kong are continuing their near-term rebound, reflecting cautious optimism in the region. Nevertheless, this momentum has not translated into significant activity in the forex...
A Week of Contrasts: US Resilience, Hawkish BoJ, ECB Cut Speculations, China’s Reversal
The past week in the financial markets was a blend of the anticipated and the unforeseen, creating a cloud of indecision among traders. Central bank decisions by ECB, BoC, and BoJ unfolded largely as anticipated. But BoJ's slightly hawkish communication provided a temporary lift to Yen. Despite ECB President's...
Dollar Down Mildly after Core PCE Miss, Ready for Breakout?
Dollar falls mildly in early US trading hours, following the release of core PCE inflation data which indicated a slightly sharper than expected slowdown. However, this weakness in Dollar is somewhat counterbalanced by unexpectedly robust growth in consumer spending. Despite these movements, Dollar remains within its established trading range,...
Subdued Trading Continues, Euro Falters as Markets Await US PCE Inflation
The subdued trading in the forex markets observed through the week continued in today's Asian session. Despite numerous central bank decisions and key economic data releases, most major currency pairs and crosses are staying within last week's range. Euro, as the worst performer. so far is a notable exception....
Risk Sentiment Revives on Strong US GDP, Euro Holds Its Ground Against Dollar Post-ECB
Commodity currencies bounce in early US session, spurred by unexpectedly robust US GDP data that has invigorated stock futures. This surge in risk appetite is exerting some pressure on Dollar, although the impact remains relatively contained for the moment. The sustainability of this risk-on sentiment is still in question,...
US Stocks Begin Profit-Taking as Investors Eye GDP; ECB Rate Decision Also Awaited
Range trading continues in most major pairs and crosses for the week so far. Dollar's selloff was relatively short-lived overnight, as US stocks retreated rather deeply after initial rally. There is sign of profit-taking in equities, which could curb any selling pressure in the greenback in the near term....
Sterling Rises Following Encouraging UK PMI Data, Dollar Weakens Across the Board
Sterling rises notably against Euro and Dollar today, buoyed by encouraging UK PMI data that pointed to a strong start for the year with renewed growth momentum. More importantly, this data suggests that BoE might need to delay its rate cut plans, as inflationary pressures could potentially resurge due...
Forex Markets Hesitant, Eurozone and UK PMIs, BoC in Focus
The forex markets are currently extending a phase of indecision. Dollar, after briefly rallying against Euro and Swiss Franc, saw its gains diminish. Australian Dollar's initial surge, fueled by optimism over China's proposed stock market rescue plan, also quickly dissipated.
Presently, Japanese Yen emerges as the strongest currency for the...