Dollar Extending Recovery, Turning Around the Corner
Dollar starts the month with a much firmer footing, trading broadly higher as the strongest one so far. The rally is particular against Swiss Franc, which is currently the weakest one. Yet the greenback will firstly need to overcome some near term technical levels to convince traders about its...
Trading Subdued in Cautious Mood, Dollar Still Finding Momentum for Rebound
Trading in forex markets is rather subdued today in overall mixed mood. Better than expected manufacturing data provides little lift to sentiments. Coronavirus curfew in Australia's Victoria state is also shrugged off. Instead, traders are generally cautious ahead of a very busy week. RBA and BoE will meeting while...
RBA to Caution about Economic Impacts of Renewed Lockdown, Relying on Fiscal Policy for Stimulus
RBA will most likely leave all of its monetary policy measures unchanged in August.
The cash rate will stay on hold at 0.25%, the yield curve control program remains targeting 3-year government bonds at 0.25% and the Term Funding Facility will remain in place. However, the officials’ view on the...
Yen, Dollar, Aussie, Gold and Stocks in Focuses in a Busy Week
Dollar's selloff extended last week, after rather uneventful Fed meeting. The decline was particularly serious against generally strong European majors. Sterling ended as the strongest one this time, followed by Euro and Swiss Franc. While the greenback was weak, New Zealand and Canadian Dollar were even worse, with the...
CFTC Commitments of Traders – NET LENGTH on Crude Oil and Gold Futures Declined on Profit Taking
According to the CFTC Commitments of Traders report for the week ended July 28, NET LENGTH for crude oil futures plunged -16 307 contracts to 532 569 for the week. Speculative long position slumped -11 088 contracts, while shorts gained +5 219. For refined oil products, NET LENGTH for...
CFTC Commitments of Traders – Bets on Higher Euro Sharply Increased as the Currency Rose to Highest to about 2 Years
As suggested in the CFTC Commitments of Traders report in the week ended July 28, NET SHORT for USD Index futures increased +934 to 6 727 contracts. Speculative long positions gained +3 856 contracts and short positions added +4 790 contracts. Concerning European currencies, NET LENGTH in EUR futures...
Dollar Recovers Mildly ahead of Monthly Close, CAD Lifted Slightly by GDP
Dollar recovers mildly as markets turned mixed ahead of monthly close, but remains the second weakest for the week. Canadian Dollar is currently still the worst performing, as dragged by oil selloff. But we'll see if better than expected GDP data could give the Loonie a lift before the...
China’s Economy Continued to Improve in July, but Pace Varied Across Sectors
China’s official PMI report reveals that economic activities continued to expand in July. However, the pace of recovery varied across sectors. Manufacturing and construction activities improved faster than expected, thanks to better overseas demand government’s stimulus measures. However, the services sector was dragged as household demand remained weak. Although...
Euro Power Continues ahead of GDP, Dollar Drags Further by Falling Yields
Dollar's broad based selloff continues in Asian session today. There are increasing concerns that momentum of US economic recovery is starting to falter. The pessimism is somewhat reflected in persistent decline in treasury yields too. Though, Canadian Dollar is even worse as pressured by sharp decline in oil prices....
Risk Sentiments Weaken on Record GDP Contractions, Canadian Follow Oil Lower
Commodity currencies are general under pressure today, following global stock markets lower. Record Q2 GDP contraction in Germany and US are weighing on sentiments. Rebound in jobless claims add to concern of double dip recession. US futures also tumble after President Donald Trump floats the idea of delaying 2020...
US Crude Oil Inventory Surprisingly Plunged, While Petroleum Stockpile Gained
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks soared +8.82 mmb to 1461.16 mmb in the week ended July 24. Crude oil inventory slumped -10.61 mmb (consensus: +0.36 mmb) to 525.97 mmb. Stockpile fell in 4 out...
Dovish Fed Warned that Recovery Path Dependent on Virus, Pledged to Add More Stimulus when Needed
The Fed sent a more dovish message at the July meeting, although the monetary policy, as well as the accompanying statement, stayed largely unchanged. Despite improvement of data flow, the members warned that the pace of recovery is depending on the developments of coronavirus pandemic. Fed Chair Jerome Powell...
Yen Crosses Diverge, Dollar Tumbled after Uneventful FOMC
Dollar tumbled again overnight after the rather uneventful FOMC rate decision. But selling slowed a little bit in Asian session today. Nevertheless, the greenback remains the worst performer for the week. Commodity currencies are actually not performing well, with New Zealand and Canadian Dollar down against most for the...
Sterling Rises in Mixed Markets, Dollar Weak ahead of Fed
Sterling surges broadly in rather mixed markets today. Rebound in cross against Euro is seen as a major reason for the Pound's strength. Australian Dollar is following as the second strongest for now, partly listed by cross buying against New Zealand Dollar. Kiwi and Swiss Franc are, on the...
Gold Price Approaches US$2,000/oz amidst Low Real Yields, Rising Inflation Expectations and Geopolitical Tensions
Gold's rally has accelerated with the front-month Comex contract making new highs for two consecutive dates. We believe the recent relentless rally of the yellow metal is driven by a number of factors: low real rates, expectations of higher inflation as a result of ultra expansionary monetary policy and...
Dollar Soft Awaiting FOMC, Overall Movements Limited
Dollar remains generally weak today as recovery attempts faltered quickly. Though, selling remains centered against European majors and Yen. FOMC monetary policy decision is a focus today but it's unlikely to give the greenback any sustainable support. Overall, major pairs and crosses are bounded inside yesterday's range, though. Gold...
Yen and Franc Rise, Euro and Gold Dip in Consolidative Markets
Yen rises generally today, together with Swiss Franc, in rather subdued consolidative markets. Stocks are trading mildly lower but there is hardly any following selloff for now. Much volatility is seen in Gold and Silver, while retreat notably after initial spike. But both are contained above near term support...
Dollar in Recovery as Markets Digests Recent Losses, Weak Momentum Though
Dollar recovers mildly today as markets start to digest recent broad-based losses. Gold and silver are also in retreats after initial spikes. But the movements are so far rather limited. While some consolidations might be seen, there is no sign for sustainable rebound in the greenback yet. As of...
Euro Power Continues While Gold Extends Record Run
The powerful rallies in Euro and Gold remain the dominate theme for today as traders seems to be focusing on the worsening US-China relations as well as second wave of coronavirus infections in the US and Asia. Swiss franc tumbles sharply, as mainly pressured by the selloff against Euro...
FOMC Preview – Preparing for Changes in Monetary Policy
The upcoming FOMC meeting aims at preparing the market for changes in the monetary policy in September. At the meeting this week, the Fed will keep its policy measures unchanged at this week’s meeting, i.e., the Fed funds rate will stay at 0-0.25%, while asset purchases (QE) will be...