Market Overview
Greenback Recovers from Powell Firing Whipsaws, Aussie Crushed by Jobs Shock
Dollar swung sharply overnight as speculation swirled around the fate of Fed Chair Jerome Powell. Reports surfaced that US President Donald Trump was preparing to fire Powell imminently, with one claim suggesting a dismissal letter had already been drafted and shown to lawmakers during a meeting on cryptocurrency legislation....
Calm FX Session Sees Franc Slips, Yen Recovers
Forex markets are trading with a relatively subdued tone as the US session gets underway, with limited broad-based momentum among major currencies. The most notable move is a selloff in the Swiss Franc, which appears largely technical, led by a bullish bounce in EUR/CHF.
Meanwhile, Yen is seeing a modest...
Sterling Inches Up on UK CPI; US Tariff Deals and Crypto Politics Share Spotlight
Sterling edged modestly higher today after UK inflation surprised to the upside, though gains were restrained. CPI and core CPI both accelerated in June, with goods inflation jumping sharply. The move raises questions about tariff passthrough effects and complicates the BoE's path ahead.
While a BoE rate cut is still...
Markets Calm as US CPI Leaves Fed Outlook Unchanged, Yen Slides Continue
Markets shrugged off the latest US CPI release, with muted reactions across assets. While annual core inflation ticked slightly higher, the modest rise appears to be a relief for Fed and investors alike. Overall, the data does little to shift expectations around the Fed’s easing path.
The July FOMC meeting...
Bond Market Signals Deepening Japan Risk , But Yen Finds No Lift from Surging Yields
Japanese bond markets are flashing warning signs ahead of a politically uncertain weekend. The 10-year JGB yield surged to its highest level since March and is on the cusp of breaking 1.6% for the first time since 2007. Long-dated yields have moved even more aggressively: the 30-year hit a...
Markets Cautious But Not Panicked, Hope for US-EU Deal Remains
The reaction to US President Donald Trump’s latest tariff salvo has been relatively muted so far. Germany’s DAX and France’s CAC opened mildly lower, but losses remain limited. In currency markets, Euro is holding steady, trading largely inside Friday’s ranges without triggering major downside momentum. The market appears to...
Euro Steady as EU Holds Fire After Trump’s 30% Tariff Blow
Risk sentiment turned mildly negative in Asia on Monday following US President Donald Trump’s announcement of 30% tariffs on imports from the EU and Mexico, starting August 1. While US futures turned lower, equity markets in Asia were more muted, digesting the move in context of still-holding EU retaliation.
The...
Investors Brush Off Tariffs, Dollar Rebounds Near Long-Term Channel Support
Global markets brushed aside the latest escalation in the US-led trade war last week, with equities rallying to fresh record highs and risk appetite proving remarkably resilient. Overall, the muted investor response suggested markets were pricing in the tariff headlines as more bark than bite, at least for now.
Aussie...
Loonie Rebounds on Strong Jobs Data, Sterling Hit by GDP Miss
Canadian Dollar staged an impressive rebound after June’s employment report far outpaced expectations, reviving hopes that BoC can stay on hold despite mounting trade pressures. The release comes just after US President Donald Trump announced sweeping 35% tariffs on Canadian imports, which initially drove the Loonie lower.
With interest rates...
Dollar Climbs as Trump Targets Canada, But Aussie Outshines
Dollar advanced broadly after US President Donald Trump escalated trade war again with a fresh 35% tariff on Canadian imports. The announcement cited Canadian retaliation and the fentanyl crisis as justification, while threatening even steeper duties if Ottawa imposes further countermeasures.
Trump’s sweeping tone extended beyond Canada. While 22 countries...
Mining Rally Lifts FTSE; Markets Shrug Off Expanding US Tariffs
Risk appetite remains solid in Europe, with the FTSE 100 hitting a fresh record high as traders look through escalating US trade actions. US equity futures are holding steady too, and markets are showing little fear that the widening scope of tariffs will derail global growth. The upbeat mood...
Trade War Spreads to Brazil, Dollar Reversing, Bitcoin Hits Record
Risk appetite has remained firm across global equities this week, with NASDAQ hitting a fresh record high overnight and S&P 500 and DOW also closing in the green. These gains followed similar moves in Europe, where Germany’s DAX notched another record. However, the mood in Asia has been less...
Dollar Pauses as Markets Await FOMC Minutes, Overall Action Muted
Activity in the forex market cooled today as traders adopted a cautious stance ahead of June FOMC minutes. With no major surprises expected, the minutes are unlikely to shift current expectations for a Fed hold at the July 30 meeting. That baseline has been reinforced by the latest shift...
Dollar Leads as Tariff Windfall Fuels Fiscal Hopes, Copper Soars on Tariff News
Dollar is leading the major currencies this week as investors digest an escalating trade war campaign from Washington. While steep tariffs typically raise concerns about disruption to global supply chains and demand, the Trump administration is clearly framing tariffs as a tool not only for reshoring production but also...
Markets Unfazed by Trump Tariff Letters; Kiwi Outshone by Aussie ahead of RBNZ Hold
Global equity markets traded cautiously and remained stable on Tuesday, showing limited reaction to escalating US trade threats. Major European indexes moved in narrow ranges following modest gains in Asia, while US equity futures stayed flat. The restrained response suggests markets are neither complacent nor panicked as they assess...
RBA Surprise Hold Lifts Aussie; Trump Tariff Threat Hits 14 Countries
Aussie rallied sharply on Tuesday after RBA unexpectedly held its cash rate steady at 3.85%, defying widespread expectations for a 25bps cut. While a majority of economists had penciled in an easing move, the 6-3 vote revealed deep divisions within the Board. It's unclear whether RBA’s decision was influenced...
Tariff Pressures Lifts Dollar, RBA Cut and Guidance in Spotlight
Dollar is outperforming across the board as markets enter into US session, which trade war risks continue to dominate market attention. With the July 9 tariff truce deadline fast approaching, The Trump administration shifted to a confrontational stance, offering “take-it-or-leave-it” tariff deals. According to Treasury Secretary Bessent, failure to...
Trump’s BRICS Threat Rattles Aussie and Kiwi
Australian and New Zealand Dollars fell sharply to start the week, leading losses alongside Yen. The moves come just ahead of central bank meetings in both countries, with RBA widely expected to cut rates by 25bps to 3.60% and RBNZ likely to hold at 3.25%. But given how well...
Wall Street Surges, Trump Tariff Blitz Looms, Dollar Struggles
Last week’s market action displayed a familiar theme: investors are choosing to focus on growth — even if it’s fragile — and political clarity, however fleeting. US equities roared to record highs as a wave of macro and policy news washed over Wall Street.
Yet the outlook is far from...
Dollar Bounce Short-Lived as Eyes Turn to Trump’s Trade Salvo
Dollar’s rebound on upbeat US jobs and services data proved short-lived, as the greenback faded again in early Friday trading. The greenback failed to hold gains amid a broader risk-on tone with both S&P 500 and NASDAQ closed at fresh record highs.
Strong employment data gave policymakers room to wait,...