Market Overview
Trade Optimism Boosted Stocks, Yields, & Dollar
Trade optimism was the main theme driving the financial markets last week. Investors seemed to be convinced that US and China are close to signing trade agreement phase one, even though it's unsure when and where yet after the APEC summit in Chile was cancelled. Additionally, there were increasing...
Dollar Boosted by Yields, Canadian Weighed Down by Job Data
Dollar rises broadly today and it's set to end as the strongest one. Strong rally in treasury yield, with 10-year yield now at 1.95, is giving the green back solid support. Stock futures point to mixed open, but could easily extend recent record run if there is more positive...
Dollar Strong on Trade and Rebound in Treasury Yields
The forex markets are pretty steady in Asian session today, staying inside yesterday's range. Over the week, Euro is currently the weakest one on poor economic outlook, with downgrades by European Commission. New Zealand dollar is second weakest after rise in unemployment rate. Sterling is the third weakest as...
Sterling Dives as Two BoE Members Voted for Rate Cut, Yen Pressured by Trade Optimism
Sterling drops broadly today after two BoE policy makers surprisingly voted for a rate cut, even though the central eventually stood pat. Following the Pound, Yen is the second weakest as risk appetite returns. Market sentiments were lifted after China said they agreed on phased rollback of tariffs with...
Sterling Range-Bound as BoE Projections Eyed, Yen Rebounds
Yen jumps broadly today as risk appetite continues to recede in Asian session. Investors turned a bit cautious as it's still uncertain when and where US and China would sign the phase one trade agreement. Currently, Swiss Franc is the second strongest, followed by Dollar. On the other hand,...
Dollar Pares Gain ahead of Resistance in Indecisive Markets
The markets are relatively indecisive today. It seems that rally in stock markets have passed a near term climax, awaiting fresh developments in US-China trade negotations. Treasury yields also turn mildly lower after yesterday's rally. In the forex markets, Dollar struggles to ge through near term resistance against both...
Risk Appetite Takes a Breather, NZD Down on Unemployment Rate
Yen strengthens broadly today as markets stabilized from recent strong risk appetite. US stocks closed mixed after extending recent record runs. Euro, Dollar and Sterling follow as the next strongest while markets continue to eye trade developments. Commodity currencies are generally lower. In particular, New Zealand Dollar is weighed...
Trade Optimism Lifts Market Sentiments, Treasury Yields Higher
Trade optimism is the main diver in the financial markets today. There are talks that US officials are considering to remove the 15% tariffs on USD 112B worth of Chinese goods, put to effect back on September 1. In return, US would demand stronger intellectual property protections. If realized...
Aussie Firmer after RBA, Risk Appetite Continues as US Stocks Hit Records
Risk appetite continues in Asian session, following record closes in US. Yen and Swiss Franc continue to be broadly pressured. Meanwhile, Australian dollar survived the balanced RBA rate statement and leads other commodity currencies higher. Dollar, Euro and Sterling are mixed, with Dollar having a slight upper hand for...
Risk Appetite Continues as Yen Stays Weak, Dollar Defending Support
Yen and Swiss Franc remain the weakest ones for today, following strong rally in global stocks. US indices would likely extend the record run, as futures suggest. German and US benchmark yields also climb a bit higher. back in the forex markets, though, Dollar recover mildly as there is...
Risk Appetite Returns on Trade Optimism, Yen and Swiss Franc Softer
Strong risk appetite dominates Asian session today, partly as follow through buying from US, and partly on trade optimism. Commodity currencies are trading generally higher, as led by New Zealand Dollar rand then Australian. On the other hand, Swiss Franc and Yen are the weakest ones for now. Dollar...
Fed, BoC and RBA Expectations Drove USD, CAD and AUD
With US-China on track to phase one trade deal, and UK preparing for December election, focus turned back to economic data and central banks last week. In particular, Canadian Dollar ended as the worst performing after BoC's surprise dovish turn, which opened the door for rate cut. Dollar followed...
Dollar Rebounds on NFP, But Upside Capped by Unemployment Rate and Wage Growth
Dollar rebounds notably in early US session after stronger than expected non-farm payrolls report. But there is no clear follow through buying yet as wage growth missed. Also, at this point, New Zealand Dollar and Sterling are the strongest ones for today. Return of risk appetite sends Yen and...
Dollar Soft as Markets Await US Non-Farm Payrolls, Aussie Firmer on Chinese Data
Dollar stays soft in Asian session today as markets await non-farm payrolls and ISM manufacturing data. Yen and Swiss Franc follow as next weakest. On the other hand Aussie and Kiwi are the strongest ones so far, both are lifted mildly by slightly better than expected Chinese data. For...
Yen Jumps on Renewed US-China Trade Concerns, Dollar Extends Post FOMC Selloff
Yen rises notably today as focuses turn back to US-China trade negotiations after central bank activities and economic data releases. There are renewed concerns that even if a phase one deal could be reached, the next phase(s) would be very difficult. Dollar remains generally soft and is currently trading...
Dollar Dives as Non-Committal Powell Dissatisfied Bulls, Aussie Shines
Both Dollar and Canadian are under tremendous selling pressure after respective central bank announcements overnight. Fed chair Jerome Powell did signal a pause after yesterday's rate cut. Yet, his message was too non-committal and let Dollar bulls dissatisfied. On the other hand, BoC was clearly more dovish than expected...
Dollar Mixed after Strong GDP, But Weak ADP Jobs
Dollar continues to trade mixed in early US session. Negative effect of ADP job data is more than offset by stronger than expected Q3 GDP growth. The greenback will now look into FOMC rate decision for guidance. The key is whether Fed will signal the end of mid-cycle adjustment...
Dollar Softer as Markets Await US GDP and Fed Rate Cut
Dollar and Canadian are both trading with an undertone as markets await BoC and FOMC rate decisions, as well as US GDP data. Sterling appears to be mildly firmer as UK is finally heading towards election in mid-December. But there is no clear follow through buying. Swiss Franc and...
Yen Mixed as Risk Appetite Fades, Europeans Soft on UK Election
Australian Dollar remains the strongest one for today as boosted by optimism over US-China trade deal. But the markets are relatively mixed elsewhere. Yen couldn't decide what to do as risk appetite fades in European session, while US stocks also open mildly lower. European majors are generally soft on...
Aussie Surges on US-China Trade Optimism, Yen Broadly Lower
Australian and New Zealand Dollar rise broadly on optimism that US and China are "ahead of schedule" in completing the phase one trade deal. Dollar and Canadian are not too far away but buying is relatively refrained ahead of Fed and BoC rate announcement. On the other hand, European...