Market Overview
Sterling Holds Ground After BoE, Dollar Loses Momentum
Sterling traded steadily mixed today, showing little reaction to the BoE’s decision to hold rates at 4.00%. The 7–2 vote leaned slightly dovish, with Swati Dhingra and Alan Taylor backing a 25bps cut, but the outcome was broadly expected given their well-established dovish leanings. Importantly, the MPC’s statement flagged...
Dollar Finds Relief from Fed, Kiwi Crashes on GDP, BoE Next
Volatility surged overnight as markets digested the Fed’s 25bps cut and updated projections. The Dollar initially sank on confirmation of two more cuts this year, only to rebound sharply as traders judged the overall stance less dovish than expected. The reversal pulled Wall Street and Gold lower from record...
Loonie Steady as BoC Cuts as Expected, Fed Now in Spotlight
The forex markets were steady in early U.S. trading, with the BoC’s widely expected 25bps rate cut to 2.50% generating little reaction. The decision was fully priced in, and the absence of fresh guidance left traders reluctant to adjust positions.
The BoC struck a cautious balance in its statement, offering...
Calm Before the Fed: Dollar Soft, Markets Brace for Guidance
Markets traded with a subdued tone today as investors awaited the Fed’s highly anticipated policy decision. The Fed is expected to cut rates by 25bps, but the real market mover will be the details: how divided the vote is, what the updated projections show, and the signals Chair Jerome...
Dollar Struggles Despite Strong US Retail Sales, EUR/USD Eyes Key 1.1829 Resistance
Dollar remained under pressure today even after U.S. retail sales came in stronger than expected. While the data trimmed expectations of back-to-back Fed cuts in October slightly, with odds dipping yet still holding near 78%, it did little to support the greenback. Markets appear more focused on front-running a...
Markets Rally as Fed Dovish Shift Seen Certain, TikTok Framework Struck
Risk appetite in the U.S. stayed strong overnight, with both S&P 500 and NASDAQ closing at fresh record highs. Traders leaned further into risk assets as confidence grew that the Federal Reserve will restart its easing cycle this week. Additional support came from news that Washington and Beijing had...
Dollar Slump Resumes as Traders Bet on Dovish Fed, Euro Shrugs Off France Downgrade
Dollar’s broad-based selloff resumed today, with Sterling and the Euro leading gains. Investors are positioning ahead of this week’s pivotal FOMC meeting, where debate has intensified over whether the central bank could move more aggressively than expected. Dollar was the weakest major on the day, with the Kiwi also...
Traders Look Past Weak China Data, Eye Fed and Madrid Talks
Forex markets were subdued in Asian session today, with major pairs showing little movement while regional equities held steady. The muted tone comes despite a disappointing run of Chinese economic data, which showed broad weakness in activity. Investors appeared reluctant to extrapolate too much pessimism from the Chinese numbers....
Risk Appetite Anchored by Fed Cut Bets, Aussie Outshines Peers
Markets entered last week with elevated anticipated and left with even sharper convictions. Weak U.S. labor data tilted sentiment decisively toward faster Fed easing, while equity markets used that prospect as a springboard to yet another round of record highs.
Bond markets echoed that view. US 10-year yield broke briefly...
Dollar Recovers Slightly, But Fed Cut Bets Cap Upside
Dollar steadied today, recovering modestly after yesterday's selling, though the move lacked conviction. With investors convinced the Fed will cut rates next week, the greenback remains capped, unable to mount a broader rebound. For now, the greenback is only outperforming Yen and Loonie. Yen remains under pressure from buoyant...
Risk-On Momentum Builds, Aussie Shines
Risk-on sentiment gripped markets on Friday, driving the Nikkei to fresh record highs in Asia after Wall Street’s main indexes closed at record levels overnight. Investors added to bets on faster Fed easing following the sharp jump in U.S. jobless claims, reinforcing the view that back-to-back cuts are on...
ECB and US CPI Underwhelm, Jobless Claims Take Spotlight
Today’s high-profile events turned out to be something of a letdown for traders. Euro dipped after the ECB held its deposit rate steady at 2.00% and published new staff projections, but the move was shallow and short-lived. Markets took note that both headline and core inflation are now projected...
ECB Hold Expected, U.S. CPI Could Move Everything
Asian markets were mixed in quiet trade today, with investors holding back ahead of two key events: the ECB policy meeting and U.S. CPI. The lack of conviction reflects a cautious stance, with traders unwilling to take on fresh positions before clarity emerges.
The ECB decision is much less likely...
Dollar Dips Slightly on Softer PPI, Bigger Bets Deferred Until CPI
Dollar dipped briefly in early American session while U.S. futures rebounded after producer price data showed cost pressures easing modestly. The report emboldened bets on further Fed easing, with odds of a 50bps cut next week edging up to 10% and expectations for a back-to-back October move climbing back...
Dollar Selloff Pauses Ahead of PPI Test
Dollar sellers paused, with the greenback holding just above recent lows as traders took profits ahead of two crucial U.S. inflation reports. Momentum stalled as markets awaited fresh catalysts in the form of PPI today and CPI on Thursday. Any signs of hotter-than-expected price growth may revive fears of...
Yen Rebounds Despite Confusion Over BoJ’s Next Move
Yen rebounded broadly today, climbing to the top of the performance leaderboard as traders latched onto speculation that the BoJ may still raise rates as soon as October. A Bloomberg report citing unnamed officials suggested some policymakers favor an earlier move, with reduced concern about growth risks following the...
Greenback on the Brink, France Adds Pressure to Euro
Dollar weakened broadly overnight and selling pressure persisted in Asia on Tuesday, with the greenback on the verge of breaking recent lows against Euro, Swiss Franc, and Aussie. The decline comes amid falling U.S. Treasury yields and growing conviction that the Fed will move toward faster easing.
With no major...
Euro Soft as France Faces Confidence Vote, Yen Weak Despite Recovery
Euro turned softer against both Sterling and Swiss Franc today as investors shifted focus to France ahead of a key confidence vote. While Thursday’s ECB rate decision dominates the week’s agenda, political instability in Paris could add fresh downside risk to the single currency.
Prime Minister François Bayrou’s minority government...
Yen Under Siege, Dollar Mixed Awaits CPI, Euro Steady Before ECB
A political shock in Tokyo is dominating global markets today, with Prime Minister Shigeru Ishiba announcing to step down over the weekend. The surprise resignation boosted risk appetite, propelling Nikkei. Yen, meanwhile, looks increasingly vulnerable. Last week’s dip in U.S. Treasury yields provided only temporary relief, and the currency...
Dollar Falters and Yields Dive, Gold Hits New Highs, Stocks Hesitate
The past week in global markets has been anything but routine. What began as cautious positioning around economic data turned into a full-scale rethink of Fed policy and global growth prospects. Currency traders, bond investors, and equity markets were all forced to adjust as the numbers told a weaker...