Wed, May 22, 2019 @ 16:47 GMT
Dollar is staying firm in Asian session today after overnight rally. Markets received Fed Chair Jerome Powell's composed and balance testimony rather well. And he basically affirmed that Fed in on track for its projected rate path. In particular,...
It was a roller coaster week with political turmoil in Italy dominated the first half of the week. The formation of the populist Italian government after acceptance by President Sergio Mattarella marked the end of the episode. Trade war...
While the reaction to former Brexit Minister David Davis was largely muted, the situation seemed to change drastically after adding former Foreign Minister Boris Johnson. Prime Minister Theresa May wanted to provide certainty to UK businesses with her locked...
Risk aversion dominates in the Asian markets today as recession fears spread. But the currency markets are steady though. Major pairs and crosses are bounded inside Friday's range at the time of writing, with mild weakest in Sterling and...
The forex markets turn relatively mixed today and markets lack a general direction. Risk appetite appeared to be firm earlier in Asian session but quickly faded. Major US indices open the day mildly lower. While German 10-year yield is...
Euro strengthens again today as boost by strong confidence data. German Ifo business climate hit a record high. Additionally, there is positive political news out of Germany as the Social Democrats announced to enter into talk with Chancellor Angela Merkel. Dollar pared back some losses against all but Euro and Sterling. But the greenback will still likely end the week as the weakest one. Meanwhile, Japanese Yen lost much ground as risk appetites returned to global markets. Yen and Canadian Dollar could end as the weakest ones together with Dollar.
Trading activities in the forex markets are rather subdued today. Dollar weakens mildly as traders are staying cautious ahead of FOMC rate decision later on Wednesday. Sterling is also soft as markets eye today's inflation data. On the other hand, New Zealand Dollar remains the strongest one this week and commodity currencies are generally firm. But there is no confirmed signs of a trend there yet. In other markets, US indices gained some ground overnight but DOW and S&P 500 are kept below the historical highs made last week. Treasury yields were mixed with 10 year yield gained a little by 0.002 to 2.385. Asian markets are also mixed with Nikkei trading nearly flat at the time of writing.
Canadian Dollar remains the strongest one today as boosted by the new trilateral USMCA trade deal with US and Mexico. Meanwhile, Sterling is shot up by news that UK Prime Minister Theresa May is ready to make a new...
Yen trades generally lower today in otherwise quiet markets. Euro is trading firmer while Sterling is paring some of last week's sharp gains. Global markets are generally in risk seeking mode. The MSCI Asia Pacific ex Japan index surged to decade high earlier today. European indices follow with some gains, including FTSE. US futures also suggest that stocks are going to extend the record run. If other markets, gold continues with it's pull back from recent high at 1362.4 and hits as low as 1314.5 so far. It's possibly heading back to 1300 handle, which is close to 55 day EMA at 1293.4. WTI crude oil weakens mildly as it struggles to find sustainable buying to stay firm above 50 handle.
While Dollar is extending it's broad based recovery today, it's Yen's weakness that's worth more of a mention. There is no clear follow through in global stock rally today. Yet Yen is under broad based pressure and it's overtaking...
Markets open another week rather steadily. Canadian Dollar remains the strongest one as supported by rate hike expectations. Dollar is trying to recover again, in particular as EUR/USD is feeling heavy ahead of 1.2091 key near term resistance. But more evidence is needed to confirm underlying strength in the greenback. Strong global risk appetite is keeping Yen and Swiss Franc soft. But Aussie is so far the weakest one after the government forecasts 20% drop in iron ore price this year.
Stocks suffered another round of steep selloff overnight. DOW dropped more than -1000 pts for the second time in just four days, scoring the second biggest point drop ever. DOW lost -1035.89 pts, or -4.15% to close at 23860.46. This week's low at 23778.74 was not breached yet. But it looks vulnerable as two other major indices made new lows already. S&P 500 lost -100.66 pts or -3.75% to close at 2581.0, below prior weekly low at 2593.07. NASDAQ dropped -274.82 pts or -3.9% to 6777.16, also below prior weekly low at 6824.82. That is, recent selloff is resuming and the indices will likely head further lower before closing the week. In Asian markets, Nikkei follows by losing -3.2% at the time of writing, HK HSI is down -3.65%.
The forex markets are in rather dull mode today with lack of new drivers. Sterling remains the weakest currency for the week and markets continue to pare back expectation of a near term BoE hike. Dollar follows closely as there are talk emerging that US President Donald Trump would achieve nothing this year after the collapse of the health care bill. Euro also trades generally lower today as markets await ECB rate decision and press conference. But some volatility could be see in the upcoming Asian session first, with Australia employment data and BoJ policy decisions featured.
Canadian Dollar suffers steep selling today as US President Donald Trump singles out Canada and Mexico in his trade war rhetorics. He said in a tweet that "NAFTA, which is under renegotiation right now, has been a bad deal...
Risk appetite returned overnight with financial sector leading stocks higher. The surge in WTI crude oil through 50 handle also boosted overall sentiments. DJIA closed up 0.33% at 20728.94 and would be testing 20757.89 near term resistance today. NASDAQ has indeed closed at new record high at 5914.34, up 0.28%. But the sentiments didn't carry on in Asian session as Nikkei closed down -0.81% at 18909.26, below 19000 handle again. Dollar index is back above 100 handle and broke near term resistance at 100.48, indicating the possibility of reversal. In the currency markets, Aussie and Canadian Dollar are leading the way up for the week on risk appetite, followed by Dollar. Meanwhile, European majors are generally weak with Euro setting to close as the weakest one.
US stocks extended the record run overnight as Trump trade remained in force. DJIA closed up 142.79 pts or 0.70% at 20412.16. S&P 500 rose 12.15 pts, or 0.52% to end at 2328.25. NASDAQ gained 29.83 pts or 0.52% to 5763.96. All three indices closed at record highs. Treasury yields also increased mildly but stayed in familiar range. 10 year yield rose 0.025 to end at 2.434. Dollar followed higher with the index hitting 101.11 and breached 101.02 resistance. But there is no sustainable momentum above this resistance yet. In the currency markets, Yen remains the weakest major currency on risk appetite. Euro follows as the second weakest on worries over political situations in Europe. The economic calendar is very busy today but main focus will be on Fed chair Janet Yellen's semiannual testimony to the Senate.
Dollar, Yen and Swiss Franc are trading as the strongest ones today as supported by solid safe haven flow. The free fall in Turkish Lira raised concerns of contagion to Eurozone financial system. Such worries sends the Euro broadly...
Dollar closed broadly higher last week, and closed as the strongest as boosted by a couple of factors. Firstly, House approved Senate's version of budget blueprint, and cleared an important procedural step for getting the tax cuts done by the end of the year. Secondly, markets responded positively to news that Fed chair Janet Yellen is out of the race for a renewal. Instead, Fed Governor Jerome Powell and Stanford University economist John Taylor are now the front runners. Powell is reported to be slightly more favored by US President Donald Trump and is seen as a less hawkish candidate. But after all, there is still a possibility of Powell/Taylor combination for chair/vice of Fed. And either one seems to be more welcomed by the markets than Yellen. Thirdly, Q3 GDP came in at an impressive 3% annualized growth, despite the impacts of hurricanes.
Risk markets attempt to recover today but lacks clear momentum. Nonetheless, that's enough to send Swiss Franc generally lower. At the time of writing, Canadian Dollar is the second weakest. Dollar follows as third weakest despite better than expected...
US and China agreed not to escalate trade war after meeting between Trump and Xi. A cease-fire agreement was reached. Even though it's just for 90 days, Asian markets responded positively to the development with all major indices recording...
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