EUR/USD Makes New 2019 Low But No Follow Through Selling Yet
Forex traders remain rather uncommitted today. Euro was weighed down by renewed weakness in German 10-year bund yield, which hit as low as 0.594. The common currency hit new 2019 low against Dollar but there is no follow through selling. Australian Dollar also recovers notably after initial weakness. On...
Dollar Buying Lost Momentum ahead of Key Resistance
The forex markets remain in rather indecisive mode for now. Dollar buying attempted to take off yesterday, but quickly lost momentum. The greenback pares back some of yesterday's gains in Asian session. Similarly, there was no follow through selling in Australian and New Zealand Dollar so far. Yen is...
Dollar Rises on Trade Pessimism and Trump Impeachment
Markets are generally in risk averse mode today, partly due to receding US-China trade optimism after hardline comments from US President Donald Trump at UN yesterday. Also, US House Speaker decided to lunch a formal impeachment inquiry on Trump. Nevertheless, while European markets are in red, DOW future is...
Sentiments Turned Sour after Trump’s Harsh Words on China
Sentiments turned sour again after US President Donald Trump's harsh words on China at UN. But reactions in the forex markets are relatively muted. Dollar is the stronger one for now. New Zealand Dollar is supported after RBNZ stands pat without hinting on another imminent rate cut. On the...
Sterling Surges of UK Supreme Court Ruling, Aussie Lifted by RBA Lowe
Sterling rises broadly today as MPs are expected to back to work on blocking no-deal Brexit after Supreme Court ruling. Meanwhile, Australian Dollar is lifted by RBA Governor's refrain from signaling an imminent rate cut next week. New Zealand Dollar follows higher too. On the other hand, Yen and...
US-China Trade Talks to Continue in Two Weeks, Euro Look into German Ifo
The forex markets are generally in tight range today. Risk sentiments improved slightly after US Treasury Secretary Steven Mnuchin indicated there would be a high-level trade talks with China in two weeks. New Zealand and Australian Dollars are trading mildly higher. On the other hand, European majors are generally...
Euro Plummets as Poor PMIs Point to More ECB Stimulus
Euro is sold off broadly today after shocking poor Eurozone and German PMIs. As Markit put, that data could put pressure on ECB to add to its recent stimulus package. Sterling is somewhat dragged down by Euro and is following as the second weakest. On the hand, Yen is...
Risk Appetite Turns Softer But Aussie Supported by Services PMI
The forex markets are trading in rather tight range today. Risk appetite turn weaker on renewed worries over US-China trade negotiations. Asian stocks responded by opening lower. Yen could extend the rebound started on Friday if sentiments worsen ahead. But for now, the risk aversion currency is trading slightly...
Yen Jumps as Trade Optimism Waned Suddenly after China Canceled Farm Trip
Yen and Swiss Franc ended as the strongest ones last week. They're partly supported by lack of clear indication of imminent easing from respective central banks. There was additional buying on a pessimistic turn on US-China trade talks. Dollar ended mixed after Fed's hawkish rate cut. Theorectically, Fed should...
Dollar Regains Ground after US Exempts Some Tariffs on China
Dollar regains some ground in early US session as US exempts tariffs on some Chinese products temporarily. It seems that both sides are keen to create the right mood for continuing negotiations, at least for now. Though, at this points, Swiss Franc and Yen remain the stronger ones for...
Sterling Surges as EU Juncker said a Brexit Deal is Possible by Oct 31
Sterling rises broadly today on optimism that a Brexit deal could finally be reached by the end of next month. For now, Swiss Franc and Yen are following as next strongest. On the other hand, Dollar turns soft as post-FOMC lift continued to fade, followed by New Zealand Dollar...
BOE Stays Put But Warns of the Market Volatility in Case of Further Brexit Delay
BOE voted 9-0 to leave the Bank rate unchanged at 0.75%. It also maintained the asset purchase program at 435B pound and corporate purchase at 10B pound. BOE also made detailed discussion on the problems stemmed from Brexit uncertainty.
The members warned that “shifting expectations about the potential timing and...
Focus Turning to Trade Talks after BoE, SNB and BoJ
Swiss Franc and Yen are trading as the strongest for today so far. Both like lifted by somewhat dovish yet balanced central bank decisions. There are no clear indication of imminent policy easing from SNB nor BoJ yet. On other hand, commodity currencies are generally lower as led by...
SNB Raises Exemption Threshold for Negative Rate; CHF Rises on No Rate Cut
SNB left the policy rate unchanged at -0.75%. It reiterated the commitment to “intervene in the foreign exchange market as necessary, while taking the overall currency situation into consideration”. Additionally, the central bank adjusted the interest charged on banks’ excess reserve. The rationale is similar to ECB’s tiering system...
Dollar Lacks Follow Through Buying after Fed’s Hawkish Cut
The stock markets are mixed after the hawkish rate cut by Fed overnight but treasury yields are back under pressure. Dollar rose mildly after the announcement but there was no follow through buying. Yen surges broadly today, riding on falling yields, followed by Swiss Franc. Australian Dollar is the...
US Oil Inventory Climbed Higher Across the Board, After Weeks of Withdrawal
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks sank -3.14 mmb to 1295.96 mmb in the week ended September 13. Crude oil inventory added 1.06 mmb to 417.13 mmb (consensus: -2.5 mmb). Inventories decreased in 4 out...
FOMC Cut Rate by -25 bps. Third Cut Still Possible Despite Sounding Less Dovish
Fed lowered the policy rate by -25 bps to 1.75-2.00%, although market expectations of a rate cut diminished markedly ahead of the meeting. The decision was not unanimous. Yet, it revealed a more divided Fed. The updated median dot plot shows a significant minority favoring one more cut by...
Markets in Tight Range and Fed Rate Cut Awaited
The forex markets are generally stuck in very tight range today, as markets await Fed's rate cut. Dollar is the stronger one as followed by Canadian and Yen. Australian Dollar is the weakest one so far. Sterling follows as second weakest after lower than expected consumer inflation reading. New...
Dollar Mildly Higher as Fed Cut Turned From Done Deal to Debatable
Dollar firms up mildly today as all eyes are on FOMC rate decision. A rate cut has turned from being a done deal to debatable, based on market pricing. While a cut is still generally expected, the greenback could be supported if Fed signals that the door for further...
Euro Recovers as German Economic Sentiment Rebounds, Dollar also Higher
Euro recovers mildly today as partly supported by strong rebound in German economic sentiment. Though, upside is capped for now as outlook for the country remains negative. Follows as the second strongest, then Yen. Fed is still widely expected to cut interest rate again tomorrow. And the question is...