CFTC Commitments of Traders – Traders Trimmed Bets on Euro as the Currency Rallied Despite Soaring Coronavirus Cases in the Region
As suggested in the CFTC Commitments of Traders report in the week ended March 3, NET LENGTH in USD Index droped -2 589 contracts to 22 488. Speculative long positions fell -7 880 contracts and short positions declined -5 291 contracts. Bets on both sides obviously shrank as the...
CFTC Commitments of Traders – Crude Oil Prices Slumped as OPEC+ Failed to Agree on Further Output Cut
According to the CFTC Commitments of Traders report for the week ended March 3, NET LENGTH for crude oil futures plunged -43 097 contracts to 388 369 for the week. Speculative long positions added +5 106 contracts while shorts jumped -48 203 contracts. NET LENGTH for crude oil futures...
Dollar Tumbles as Markets Expect More From Fed Even after Panic Rate Cut
Global Wuhan coronavirus pandemic overshadowed all developments last week. Total confirmed cases broke 100k level (103,813 at the time of writing), with 3,522 deaths. Situation in China eased with daily new cases continued to drop. But there is no sign of slowing in South Korea (7,041 cases, 48 deaths)...
Dollar Ignores Strong Non-Farm Payrolls, Soldoff on Aggressive Fed Cut Pricing
Both US and Canadian Dollar continue to be the weakest one for today despite stronger than expected job data. In particular, markets are aggressively pricing in another deep rate cut by Fed on March 18, as Wuhan coronavirus pandemic worsens. At certain point today, fed fund futures were pricing...
Dollar Pressing Key Support as Fed Expected to Cut Again This Month
Dollar and Canadian remain the worst performing major currencies for the week and stay pressured. Both Fed and BoC s are perceived as having more room for rate cuts, comparing to, say, ECB and BoJ. Indeed, as the Wuhan coronavirus continues to spread to the world quickly, markets are...
Stock Market Roller Coaster Ride Continues With Another Red Day, Dollar Capped by Fed Cut Bets
Commodity currencies are back under pressure today, led by Aussie, as Europe equities are back in red. DOW futures point to a deep gap down. Wuhan coronavirus pandemic continues to spread all over the world and it's accelerating. Yen and Swiss Franc are the strongest today, followed by a...
Stocks Rebound on IMF Coronavirus Aid Package, Consolidation Continues
Global stock markets rebounded again as consolidations continue in a wide range. This week's central bank rate cuts, plus IMF's USD 50B aid package, could have stabilized market sentiments for now. But the global spread of Wuhan coronavirus is still there, accelerating. It remains to be seen if cases...
Stock Markets Rebound as Consolidations Continue, Euro Weakens ahead of Resistance
Stock markets rebound strongly in European session, on speculations that ECB could follow Fed to announce new monetary stimulus soon. There are also talks that markets are boosted by former US Vice President Joe Biden's Tuesday night victories in the Democratic primary for for US presidential candidate. But we're...
Investors Unmoved by Fed’s Emergency Rate Cut, Wuhan Coronavirus Continues to Spread
The financial markets are generally steady today. Fed's emergency -50bps rate cut provided no apparent boost to investor confidence. Instead, US stocks ended sharply lower again as traders are worried about worsening global outbreak of Wuhan coronavirus. Asian markets are mixed too. Major forex pairs and crosses are bounded...
Fed’s Emergency Cut Reveals the Lack of Tools to Deal with Corona-Crisis
The Fed implemented an emergency rate cut of -50 bps on Tuesday, just two weeks ahead of the FOMC meeting scheduled on March 18. The Fed funds rate range now stands at 1-1.5%. While the move is not entirely surprising, given Chair Jerome Powell’s statement last Friday and Goldman...
Markets Steady While G7 Pledges Policy Response to Coronavirus Outbreak
The financial markets generally stabilized today even though global coronavirus outbreak shows no signs of slowing down. Total global cases reach 92725, with 5186 in South Korea, 2336 in Iran, 2036 in Italy, 283 in Japan, 191 in France, 188 in Germany, 152 in Spain, 110 in Singapore and...
RBA Cut Rate to 0.5%, Being the First Central Bank to Ease Due to Coronavirus
RBA becomes the first central bank to cut interest rate in light of the negative impacts from the coronavirus outbreak. The central bank lowered the cash rate by -25 bps to 0.50% in March, expected to ease further in the near future. As revealed in the accompanying statement, the...
Aussie Steady after RBA Rate Cut, World Prepares for Coronavirus Measures
US stocks staged a massive rebound overnight, with DOW closed up over 5%. But reactions in other markets are muted. Strength in Asian markets is very limited even though major indices are in black. Gold is gyrating in tight range around 1600 handle. WTI crude oil struggles to gain...
Bets of BOC Rate Cut Increased as Domestic Growth Loses Steam while Coronavirus Gets More Worrying
The market has priced in a 60% chance of a BOC rate cut this week, up from virtually 0% two weeks ago. While moderation in domestic growth has suggested that further easing is likely, the coronavirus outbreak and its impact have the potential to push forward the rate cut...
Euro Rally Accelerates, But Surging Coronavirus Cases in Europe Poses Downside Risks
Euro's rally accelerates today, in particular against Dollar and took out an important near term fibonacci resistance. There are various explanations on Euro's strength. Considering the strength in Swiss Franc, as well as the coronavirus outbreak in Iran, the rally could be seen a manifestation of safe haven flow.
Meanwhile,...
China’s PMIs Dived in February, Just First Glimpse of the Disastrous Impact of Coronavirus Outbreak
China’s PMIs slumped to the lowest on record in February. Both the official and Caixin’s reports show that China’s economic activities were severely hurt by the coronavirus outbreak. Since the number of infected cases spiraled in late January, the Chinese government has implemented measures to control the spread of...
Markets Digesting Wild Moves as Global Coronavirus Spread Extends, China Shrugs off Poor Data
The financial markets are pretty steady in Asian session today, digesting some of last week's wide moves. Asian markets are generally higher today, in particular, Chinese stocks shrug off poor PMI data and rebounded strongly. Gold is pressing 1600 handle, recovering mildly, while WTI oil is also back above...
Stocks & Gold Crashed as Coronavirus Pandemic is Near, Traders See Fed Cut -50bps in march
The world got one big step closer to Wuhan coronavirus pandemic with explosion of number of cases outside China in the past last week. South Korea (3150 cases, 16 deaths), Italy (888 cases, 21 deaths) and Iran (388 cases, 34 deaths) are now the new epicenters, while Japan (235...
CFTC Commitments of Traders – Traders to Bet USD Index Futures Lower as Fed might Cut Rate by -50 bps bps in 2 Weeks
As suggested in the CFTC Commitments of Traders report in the week ended February 25, NET LENGTH in USD Index added +849 contracts to 26 077. Speculative long positions dropped -638 contracts and short positions declined -1 487 contracts. Bets on both sides obviously shrank as the market pondered...
CFTC Commitments of Traders – Traders Trimmed Long Bets in Gold Futures as Price Rallied to Highest since 2013
Falling for the first time in 3 weeks, NET LENGTH for gold futures declined -17 784 contracts to 335 865. According to the CFTC Commitments of Traders report for the week ended February 25, speculative long positions plunged -19 010 contracts, while shorts decreased -1 226 contracts. Gold price...