Weekly Report
Year’s Start Sees Shift in Risk Sentiment, Dollar Ended Higher Despite Jitters
The onset of 2024 marked a notable shift in global market sentiment. Major U.S. stock indexes ended their nine-week winning streak, closing lower, while major benchmark treasury yields experienced a notable recovery. Concurrently, this shift in market dynamics was accompanied by a scaling back of bets on an immediate...
Risk-On Wave Sweeps Markets, Stocks Hit Records, Dollar Declines
The financial markets concluded last week on a robust risk-on sentiment, driven primarily by the flurry of central bank activities. The stock markets, in particular, resonated with a bullish tone, cementing their position after Fed's dovish shift. This sentiment propelled key indices like the DOW, DAX, and CAC to...
A Week of Market Shifts, Yen Skyrockets on BoJ Speculations
The global financial markets last week were primarily influenced by three pivotal themes: Yen's dramatic rise, Dollar's strength following robust US employment data, and repercussions of Moody's downgrading China's rating outlook.
The most striking was the Yen's significant surge, driven by intensified speculation about an impending exit from negative interest...
Market Upturn as Inflation Cools; Stocks Climb, Euro and Dollar Falter
Financial markets were dominated by themes of cooling inflation, a slowing economy, and increasing expectations of policy easing by both ECB and Fed last week. This convergence of factors ignited a full risk-on mode among investors, propelling major US stock indexes and Germany's DAX to sharp gains. In tandem,...
Dollar’s Weak Streak Continues, Sterling and Antipodean Currencies Shine
Dollar ended as the weakest performer last week, with it poor performance aligning with broader rally in both stock and commodity markets, underpinned by growing investor sentiment favoring US economic soft-landing. Furthermore, minutes from FOMC meeting suggested a potential softening of Fed's hawkish stance. As risk-on sentiment seems poised...
Dollar’s Descent to Intensify Amid Sustained Global Risk Appetite, Yen Reversal to Exacerbate Pressure
Dollar notably emerged as the weakest performer among global currencies last week. This decline was primarily driven by robust risk-on sentiment pervading global markets and noticeable dip in treasury yields, not just in the US but globally. A key factor influencing this trend is the growing belief among investors...
Dollar Tops Weekly Performance But Next Move Uncertain, Aussie Suffers
Dollar emerged as the best performer last week, fueled by hawkish remarks from Fed Chair Jerome Powell. The greenback's surge raises questions: is this merely a recovery from recent losses, or the beginning of a new uptrend? While Dollar gains support, rising risk-on sentiment in the markets seems to...
Dollar Dives on Risk Appetite Revival and Sliding Yields
In a week marked by a significant shift in investor sentiment, Dollar found itself at the bottom of the currency heap. A rapid shift to a risk-on attitude was catalyzed by sharp decline in benchmark Treasury yields, fueling an aggressive uptick in stock prices. The surge in equity investments...
Global Markets in Flux: Gold and Bitcoin Rally, Stocks Stumble, Yield and Dollar Hesitate
It was a week marked by a series of significant headlines that captured the attention of global investors.
Bitcoin led the charge and surged sharply, touching 35k mark, a noteworthy move for the cryptocurrency giant.
At the same time, US 10-year yield demonstrated ambition as it flirted with 5%...
Geopolitical Conflicts Unravel A Week of Turmoil and its Domino Repercussions
As geopolitical tensions rise, the financial markets are inundated with heightened volatility and uncertainty. The bond market is particularly sensitive, evidenced by the 10-year Treasury yield soaring to 5% for the first time since 2007. This spike is multifaceted, driven in large part by a ballooning bond supply and...
Middle East Unrest Shakes Financial Markets; Safe Havens Gain Ground
The abrupt escalation in conflicts in the Middle East significantly influenced the global financial markets last week, causing capital influx into safe-haven assets. Amidst the military confrontations, Gold and other precious metals experienced a sharp surge in value. Oil prices also saw a rebound, reflecting the geopolitical tensions. While...
Genuine Confidence on the Economy or Simply a Mirage; Dollar in Search of Answers
In a week brimming with financial intricacies, the most surprising element was the remarkable bounce-back in US stocks post the release of the compelling non-farm payroll report. Conventional wisdom would suggest that such a robust report would serve to reinforce Fed's inclination towards prolonging its restrictive monetary policy, even...
Dollar’s Ascendancy on Market Flux Challenged by Resilient Aussie and Kiwi
As the global financial markets tread through turbulent waters marked by escalating treasury yields and declining stocks, the US Dollar emerged as a beacon of strength. A noticeable uplift in the currency was observed last week, an upward motion fuelled by the twin factors of soaring treasury yields and...
Dollar’s Conundrum: Bullish Factors Met with Lackluster Gains
Despite a confluence of favorable conditions that are typically Dollar bullish — a decidedly hawkish Federal Reserve, plummeting stocks, and soaring yields — the greenback's response was unexpectedly tepid last week. While it managed to gain ground against European majors and Yen, it faltered when squared against the robust...
Rising Commodity Currencies, Mixed Dollar Fortunes, Crucial Decisions Looming on the Horizon
Commodity currencies were the biggest winners last week as the global tightening cycle draw closer to a prolonged pause. There was some optimism that China's economy is moving past the worst with improving economic data. The change in sentiment also lift oil prices, which was already lifted by tight...
Dollar Index Nearing Key Resistance Zone ahead of an Important Fortnight
In a week characterized by significant currency movements, Dollar asserted its dominance, closing as the top performer and pushing the Dollar Index tantalizingly close to a pivotal medium-term resistance zone. The upcoming fortnight will be instrumental in assessing Dollar's upside momentum, which, in turn, will shed light on whether...
Dollar Stays Resilient after Volatile Week, Euro Falters as Worst Performer
In a week marked by high volatility, Dollar proved resilient, closing within its established range against other major currencies after intra-week selloff. This performance quells, at least for now, fears of bearish reversal for the greenback. Indeed, sentiment has shifted to favor near-term upside for Dollar, which is likely...
Dollar Stands Tall, Euro and Sterling Down on Recession Worries
Dollar clinched the title of the week's best performing currency, even though there was just muted impact from Fed Chair Jerome Powell's remarks at Jackson Hole. While Powell's renewed commitment to combating inflation prompted traders to elevate their expectations for another rate hike within the year, broader market reactions,...
A Stormy Week With Selloff in Bonds, Stocks, Bitcoin and China
Last week, the financial world navigated a storm of uncertainty and volatility. From skyrocketing treasury yields to the extended declines in equities, from the downward spiral of Chinese stock market to the tumultuous Yuan exchange rate, and not forgetting the unexpected nosedive in Bitcoin. At the same time the...
Dollar Holds Up, Storm Brewing in Commodity Currencies
Dollar emerged notably resilient in a week of highly anticipated inflation data, clinching the top spot among currency performers. With the next FOMC meeting still more than a month away, the greenback's trajectory now rests heavily on the prevailing market risk sentiment. Critical to this equation is the capability...