Sterling Nose-Dived, Dollar Skyrocketed, Yen Saved by Intervention
It's such a week of surprises. The biggest one was probably the free fall in Sterling, as markets reaction to the "mini-budget" of the new UK government was overwhelmingly negative. Commodity currencies and Euro were also pressured on risk aversion.
Dollar emerged as the strongest one after hawkish Fed hike,...
Sterling in Free Fall on Mini-Budget
Sterling is in free fall today as markets reacted negatively to the "mini-budget" of the new government. Selloff came after Finance Minister Kwasi Kwarteng announced to cancel and planned rise in corporation tax, reverse a recent rise in income tax, and cut taxes for businesses in designated investment zones....
Dollar and Yen Staying Strong on Risk-Off Sentiment
Dollar, Yen and Swiss Franc are currently trading as the strongest ones for the week, as supported by risk-off sentiment. Yen overpowers the other with help from intervention by Japan. Dollar is supported by hawkish Fed while Swiss Franc clearly lagged behind. Nevertheless, the Franc is still up against...
Yen Rebounds on Intervention, Swiss Franc Tumbled after SNB
Extreme volatility was seen in the markets in the past 24 hours. Yen rebounds broadly today after Japan confirmed that "decisive" currency intervention was made. That came after BoJ stood pat and pledged to keep rate at low level. Swiss Franc was sold off sharply after SNB hiked 75bps,...
Dollar Upside Breakout after Hawkish Fed, SNB and BoE Next
Dollar broke out to the upside overnight following hawkish Fed hike. At the same time, it's closely trailed by Swiss Franc for now, on geopolitical risks. Risk aversion is also keeping Yen afloat in crosses, despite strong rally in treasury yields. For now, Kiwi is the worst performer for...
Euro Down on Russian Military Mobilization, Dollar and Swiss Franc Gain
Euro is sold off broadly, together with Sterling, after Russia announced partial military mobilization. Reactions in European stock markets are muted, nevertheless. For now, Swiss Franc is the strongest one for today, followed by Dollar, Canadian and Yen. Aussie and Kiwi are mixed. Focuses will now turn to FOMC...
Dollar Firm But Lacks Momentum, FOMC Hike Awaited
Dollar is staying as the strongest one for the week as markets await FOMC rate hike. Yet, the greenback is still held below last week's high against most counter parts except Loonie and Kiwi. Swiss Franc is also resilient while markets are speculation a larger than expected hike by...
USD Jumps on Rising Yields and Risk Aversion, CAD Down after CPI Miss
Canadian Dollar falls broadly in early US session after weaker than expected inflation reading. Yet, it's still undecided on which currency is worst. Dollar is current in the driving seat, as lifted by extended rally in treasury yield. 10-year yield is trading up above 3.5 handle for the first...
Markets Mixed Ahead of Central Bank Bonanza, CAD Awaits CPI
The forex markets are overall mixed. Dollar retreated overnight following the rebound in stocks, but regained some ground in Asian session. Traders are holding their bets for now, ahead of the meetings of four major central banks later in the week, including Fed, BoE, SNB and BoJ. Canadian inflation...
Dollar Firmer on Risk-off Sentiment, Cryptos Tumble
The markets are relatively quiet today with Japan and the UK on holiday. Sentiment is on risk-off side, ahead of central bank rate hikes later in the week. The more notable moves are found in selloff in cryptocurrencies. Dollar is standing firm, together with Swiss Franc and Euro. Aussie...
Fed, SNB and BoE to Hike, BoJ to Stand Pat This Week
Dollar is trading with a slightly firmer tone in quiet Asian session. But overall, most major pairs and crosses are stuck inside Friday's range. Trading would likely remain subdued with Japan and UK on holiday, and the calendar is light. Nevertheless, the week ahead is ultra busy with four...
Dollar Jumped on Expectations of 75bps Fed Hike, Sterling and Franc Look to Rate Decisions Too
The stronger than expected consumer inflation data from the US basically sealed the case for a 75bps hike by Fed next. Dollar ended as the strongest one last week, as supported by risk aversion too. But the greenback could only close above prior week's high against Canadian and New...
Sterling Hits 37-Yr Low, Dollar Staying Strong
Selloff in Pound catches most currency related headlines today, as it slumped to a 37-year low against Dollar. The decline came after data showed retail sales contracted in both volume and value term in August, indicating that inflation was already biting into spending. In the background, the UK economic...
Dollar Supported by Risk Aversion, Gold Breaks Down
Overall, Dollar remains the strongest one for the week, followed by Swiss Franc and then Yen. Risk aversion support these currencies, on the expectation of another jumbo rate hike by Fed next week. Commodity currencies are the worst performers with Kiwi having an underhand. Euro and Sterling are mixed...
Dollar Shrugs Mixed Retail Sales, GBP/CHF Breaks Pandemic Low
Dollar is staying largely in range after mixed retail sales data from the US. Today's focus turns to selloff in Sterling, in particular against Swiss Franc and Euro. Yen weakens mildly after yesterday's rebound quickly lost momentum. Commodity currencies are trading on the soft side. In other markets, major...
Dollar Still in Driving Seat as Markets Await Next Moves
The markets are overall steady in Asia today. Yen attempted a rebound yesterday but there was no follow through buying so far. Dollar's rally also lacks sustained push. While commodity currencies are staying as the worst performer for the week, there is sign of some live against Euro. But...
Yen Extending Rebound on Intervention Threat, Dollar Turned Mixed
Yen is shrugging off rally in US and European benchmark yields today, and rebound on threat of intervention in Japan. European majors are also finding some foots while Dollar turned mixed. Still commodity currencies are under broad based selling pressure. While US futures might point to a flat open,...
Dollar Lacks Follow Through Buying, Yen Recovers on Jawboning
Dollar surged overnight, partly as traders added bet of another aggressive rate hike by Fed next week, and partly on deep risk aversion. Though, there is no follow through buying in Asia, as the greenback is now consolidating gains. On the other hand, Yen appears to be talked up...
Dollar Rebounds, Yields Up, Stocks Down on US CPI
Dollar rebounds strongly in early US session after stronger than expected consumer inflation reading. 10-year yield jumps sharply and breaks above 3.4% handle DOW futures are down over -300 pts at the time of writing. The case for a 75bps hike by Fed is pretty much sealed. The question...
Dollar and Yen Soft as US CPI Awaited
Dollar and Yen are staying as the weakest ones for the week as focus turns to US inflation data. European majors are the strongest ones so far, even though Euro's rise is losing some momentum. Commodity currencies are mixed for now, despite improving risk sentiment.
Technically, EUR/JPY's rally is slowing...