Thu, Oct 01, 2020 @ 00:27 GMT
Quick update: Sterling drops notably after Foreign Minister Boris Johnson finally resigns. judging from the current price action, Boris's resignation seems to be taken more seriously by the markets than Davis's. The global stock markets are in positive mood today....
Sterling is attempting to resume recent rally even though there is no clear break through in Brexit negotiations yet. European Council President Donald Tusk said it may take another seven to eight hours before knowing when Brexit may happen....
According to the CFTC Commitments of Traders report for the week ended December 11,  NET LENGTH for crude oil futures continued to fall. Speculative long positions of crude oil futures slipped -708 contracts, while shorts jumped +19 932 contracts,...
Dollar remains the weakest one for the week as markets head towards weekly close. The greenback was weighed down by a string of weaker than expected economic data. Additionally, as December 15 natural deadline looms, it's still uncertain whether...
Markets are in mild risk-off mode today but losses are so far limited so far. Dollar attempts for a rebound but upside is so far limited. The greenback is somewhat outshone by Sterling, which is regaining so strength, in...
Global stock market crashed last week as the US finally joined the others. It should be reminded that as DOW made record high in early October, all other major markets suffered selloff already. It's stretched to blame rising US...
Dollar surges broadly today as boosted by strong rally in treasury yield. 10 year yield reaches as high as 3.049 so far today and breaks key resistance level of 3.036 (2013 high). TNX reaches the highest level since 2011....
Canadian Dollar is trading as the strongest one for today, as helped by resilience in oil price and solid consumer inflation data. Dollar is currently following closely as the second strongest. On the other hand, European majors are the...
While lacking surprises, the US-China meeting held last week managed to avoid a trade war between the world's two biggest economies. Donald Trump and Xi Jinping agreed on a 100-day plan on trade that aims at boosting US exports. Meanwhile, the North Korea issue has remained a deadlock. Trump's announcement to launch airstrike in Syria during the meeting, followed by the deployment of a US navy strike group near the Korean peninsula, is a call for China to take necessary measures to address North Korea's nuclear program. Intensified geopolitical tensions have continued to pressured Korean financial market with Korean won extending weakness for a 5th straight day against US dollar while the country's benchmark equity index, KOSPI, recording the biggest one-day selloff in 6 weeks.
Risk aversion dominates the financial markets as global outbreak of China's Wuhan coronavirus worsens. DOW suffered the third-worst point drop in history overnight. 30-year yield hit new record low while 10-year yield also hit 3-year low. Though, Asian markets...
The global markets reacted rather differently as the US-China trade war formally started while there were only signs of further escalations. Over the week, NASDAQ was a star performer and rose 2.37% to 7510.30. S&P 500 rose in tandem...
Markets are rather steady in Asian session today. Major forex pairs and crosses are staying in yesterday's range. Dollar is a bit firmer entering into European session. But there is no follow through buying yet. US President Donald Trump's...
Australian Dollar weakens broadly today following more dovish than expected RBA minutes. New Zealand Dollar is currently the second weakest together with Swiss Franc. On the other hand, Euro, Sterling and Yen are the stronger ones. Dollar is mixed...
Chinese macroeconomic activities showed sharper than expected slowdown in July. Retails sales grew +10.4% y/y in July, down from +11% a month ago. The market had anticipated a milder moderation to +10.8%. Industrial production expanded +6.4% y/y in July, decelerating from +7.6% in the prior month. This came in weaker than consensus of +7.1%. Urban fixed asset investment expanded +8.3% in the first 7 months of the year, slowing from +8.6% in the first half of the year. The market had anticipated a steady growth of +8.6%. The slowdown in economic activities in China has been widely expected as the government pledged to deleverage in at attempted to defend and prevent systematic risks. However the abovementioned three major indicators came in even weaker than expectations. We expect Chinese economic growth to moderate in the second half of the year. Yet, the strength in the first half (GDP growth: +6.9%) signals that the government's full year target of 'around +6.5%' should be able to achieved.
RBA left the cash rate unchanged at 1.5% in May. Yet, the accompanying statement remained dovish, citing sharp deceleration in core inflation, decline in house price and subdued household consumption as key areas of concerns. On the monetary policy...
Dollar staged a strong rebound overnight, reversing all of prior day's losses. The uninspiring FOMC minutes were a lift in a way that it provided no dovish elements for further selloff. Yet, the greenback is kept well below near...
The markets continue trade in consolidative mode today. US stocks reversed earlier loss to closed higher overnight, ignoring the surge in coronavirus cases. Asian markets are mixed, with mild weakness in Hong Kong HSI. it's weighed down by US...
There were some conflicting movements in the markets last week. Risk appetite was clearly strong in US and Europe. S&P 500 and NASDAQ ended at record highs and DOW was not far from it. Dollar was firm as investors finally got some more details about the long awaited tax reform. Treasury yield also jumped as markets were getting more confident on the bet of December Fed hike. However, the greenback was overshadowed by Swiss Franc, which ended as the strongest one for the week. Dollar was only the second best performer. Yen also ended the third strongest ones. The decoupling of risk sentiments with Swiss Franc and Yen could be partly seen as the results of quarter end position squaring. Or, it's a sign that Dollar strength was indecisive due to lack of confidence over the tax plan.
Risk appetite remains strong in global financial markets. All three major US indices, DOW, S&P 500 and NASDAQ made record highs over night. Optimism carries on in Asian session. Even though Nikkei is trading a touch lower, stocks in China and Hong Kong are strong. The biggest surprise overnight was the surge in US treasury yields. 10 year yield close up 0.066 at 2.546. 2.621 key medium term resistance is now within reach. The development also helped lifting the dollar index back above 92.5. The greenback is probably finally preparing for a sustainable rebound.
According to the CFTC Commitments of Traders report for the week ended July 9, NET LENGTH for crude oil futures fell -2 661 contracts to 390 149 for the week. Speculative long positions dropped -7 484 contracts and shorts...
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