ECB Expects “Very Negative” Data in November, Pledges to Recalibrate Measures to Downturn
ECB has announced to leave all its monetary policy measures unchanged. The deposit rate stays at -0.5%, while the main refi rate and the marginal lending rate also remain unchanged at 0% and 0.25% respectively. The PEPP program will continue to run with a total envelope of 1.35 trillion...
Euro Down after ECB, Oil Tumbles, Dollar and Yen Rise
After a brief pause, Dollar and Yen are both extending rally in European session today. Stocks are clearly lacking momentum for even a small recovery. More surprisingly, the selloff in oil prices accelerate with WTI now pressing 35 handle. Euro is currently is the weakest one for today, after...
Dollar and Yen Firm as Asia Stabilizes, Euro Awaits ECB
The forex markets are rather steady in Asian session today, after the sharp moves overnight. Asian stocks are rather immune from the mini crash in the US. Still, for the week, Yen and Dollar are currently the strongest ones on risk aversion. Canadian Dollar is the worst performing, suffering...
WTI Crude Oil Price Plunged after US Inventory Increased Much more than Expected
The front-month WTI crude oil contract slumped to the lower in 4 weeks as increase in US inventory almost quadrupled expectations. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks plunged -16.8 mmb to 1402.34 mmb in the...
BOC Recalibrated QE with Focus on Long-term Bonds. Downgraded Growth for 2021
BOC left the policy rate unchanged at 0.25% in October. The central bank explicitly noted that the policy rate will stay unchanged at least until 2023. Meanwhile, it announced to “recalibrate” the QE program, reducing weekly purchases “gradually” to at least CAD 4 billion and turning the focus to...
Intensifying Worries on Very Serious Coronavirus Situation in Europe, Dollar and Yen Surge on Risk Aversion
Intensifying worries over out-of-control coronavirus spread in Europe push European stocks to 5-month low today. US futures also point to sharply lower open as this week's decline would likely extend. Dollar and Yen jump on risk aversion, followed by Swiss Franc to a slightly smaller extend. Australian Dollar and...
Euro Tumbles on Coronavirus and Lockdown, Yen Riding Higher
European majors are all trading broadly lower today on worsening coronavirus spread and return to lockdowns. Mild risk aversion keeps the Japanese Yen afloat but it's outperformed slightly by Aussie, after slightly stronger than expected Australian CPI reading. Dollar is mixed for the moment, benefitting little from risk aversion....
Dollar Shrugs Strong Durables, Softer in Tight Range
Dollar weakens again today but stay in very tight range as indecisive trading continues. The stronger than expected durable goods orders were are ignored by the markets. White House's comment that stimulus deal will be there in "coming weeks" is also shrugged off. Swiss Franc is following Dollar is...
Currencies Shrug Stocks Selloff, Dollar Rebound Lacks Conviction
Movements in the forex markets remain relatively limited and indecisive. There were little reaction to the steep decline in US stocks overnight, which is followed by broad based weakness in Asia. For now, Dollar, Yen and Kiwi are the firmer ones for the week. Canadian Dollar remains the worst...
Canadian Dollar Drags Down By Oil Price Fall, Dollar Shows Some Firmness
Movements in the forex markets are rather limited in European session, with some firmness seen in Dollar and Sterling. One focus is on the selloff in Canadian Dollar, which is dragged down by the steep decline in oil prices. Euro's mild weakness is also worth a note, as partly...
ECB Preview – More Stimulus to Come in December as Recovery Loses Momentum
Economic data released since the September signaled that the recovery might have lost momentum. This is a worrying signs as renewed lockdown measures in light of the second wave are expected to damage the recovery further. As a preparatory meeting for more stimulus in December, ECB will turn more...
Dollar Recovers Mildly as Markets Await BoC, BoJ, ECB and GDPs
Dollar recovers mildly in relatively quiet markets today while Aussie and Euro turn softer. But major pairs and crosses are generally keep well inside Friday's range, suggesting limited movements so far. Three central banks will meet this week including BoC, BoJ and then ECB. Lots of heavy weight economic...
Euro Strong as Funds Flow Out of American Assets, But Technical Pictures Mixed
Funds were flowing out of US assets last week as Dollar ended as the worst performing major currency. Treasury yields surged as bonds tumbled while stocks gyrated lower. But the movements were not decisive enough yet as the greenback still holds above recent lows against major currencies like Euro...
CFTC Commitments of Traders – US Dollar Resumed Weakness
As suggested in the CFTC Commitments of Traders report in the week ended October 20, USD Index futures returned to NET SHORT of 1 666 contracts. Speculative long positions decreased - 2042 contracts and short positions added +61 contracts. Concerning European currencies, NET LENGTH in EUR futures declined -2...
CFTC Commitments of Traders – Traders Bet Precious Metals to Go Higher as US Dollar Sank
According to the CFTC Commitments of Traders report for the week ended October 20, NET LENGTH for crude oil futures jumped +17 551 contracts to 490 348 for the week. Speculative long position rose +14 764 contracts, while shorts dropped -2 787 contracts. For refined oil products, NET LENGTH...
BOC Preview – Staying Cautious about the Uneven Recovery
BOC will likely leave the policy rate unchanged at 0.25% next week’s meeting. After surprising unwinding of some operations last week, the rest of easing measures put in place since March should remain unchanged. Inter-meeting data flow shows that economic recovery is underway in Canada. However, the pace is...
Dollar Softens Again as Global Stocks Regain Ground ahead of Weekend
Dollar is back under pressure today as global stock markets strengthen mildly before weekend. Though, overall markets are relatively mixed as we're seeing some strengthen in both Swiss Franc, Euro and Aussie. On the other hand, Sterling, and Canadian are softer. The developments suggest that major pairs and crosses...
Euro Prone to Downside as PMIs Awaited, Traders Shrug US Debate
It appears that the stock markets couldn't care less about the last debate before US Presidential election. Major Asian indices are trading in right range with mild gains. Nevertheless, Yen is trying to lead Dollar for a comeback while European majors are losing their strong position. In particular, Euro...
Dollar Recovers Mildly after Job Data, Markets Tread Water
Dollar recovers in early US session, with help from better than expected job data. Yet, it remains the weakest one for the week at this point. Buying momentum for the greenback doesn't warrant a reversal yet. The forex markets are mixed for now, with mild weakness in Sterling and...
Sterling to Take the Limelight as Dollar Takes a Breather
Dollar recovers mildly in Asian session today but remains generally weak, as the worst performing one for the week so far. Sellers appear to be taking a breather for now, and wait for fresh development regarding fiscal stimulus, as well as the final Presidential debate before election. For now,...