Market Overview
Risk Aversion Continues as Markets Await UK and US Retail Sales
Risk aversion stays in Asia after the -3% crash in Dow overnight. More importantly, treasury yields took another dive on recession fears. US 30-year yield even drops through 2% handle in Asia and hit as low as 1.964. In the currency markets, though, Australian Dollar rises generally after better...
Risk Aversion Back on Recession Fear, Yen Regains Control
Risk aversion quickly comes back to the market as German data suggests that the economy is on the edge of recession. Major European indices are trading in deep red and German 10-year yield also hit new record low at -0.649. Sentiments are further weighed down by US Commerce Secretary...
Sentiments Lifted by Delay of Some US Tariffs on China, But Markets Stay Cautious
Market sentiments staged a strong rebound overnight after US Trade Representative announced to delay tariffs on some Chinese imports. However, there seems to be no committed follow through buying/selling yet. DOW hit as high as 26426.97 but closed at 26279.91, up just 1.44%. It's also technically limited below 55...
Dollar Shrugs Pick-up in CPI Inflation, Swiss Franc Rises on Risk Aversion
Swiss Franc rises broadly today as risk aversion stays in the markets, even though Yen is firm but relatively unmoved. Sterling also recovers with help from stronger than expected wage growth. On the other hand, New Zealand and Canadian Dollars are the weakest while Australian is not too far...
Forex Steady Despite Risk Aversion, UK Job Data Watched
The forex markets are rather calm so far despite deep risk aversion elsewhere. Most notably, US 30-year yield plunged sharply by -0.118 to 2.130, closing in to 2.102 historical low. Major Asia indices are all in red, following selloff in US overnight. Nevertheless, all major forex pairs and crosses...
Markets Remain in Risk Aversion as Yen and Swiss Franc Maintain Momentum
Risk aversion is the main theme even though trading is generally subdued today. Yen is currently the strongest one, followed by Sterling and then Swiss Franc. The Pound is trying to recover upside is so far capped by no-deal Brexit risks. Commodity currencies are generally lower, led by Australian...
Yen and Franc Firm in Quiet Trading, More Upside Ahead
The financial markets are relatively quiet today with Japan and Singapore on holiday. Yen and Swiss franc generally firmer but there is no clear follow through buying to extend last week's rally yet. On the other hand, Dollar is soft, but focus should be more on weakness in Sterling...
Global Risks Materializing, Stocks and Yields Tumbled, Yen and Franc Surged
US-China trade/currency war, no-deal Brexit, global slowdown and central bank easing were the main themes last week. The perceived risks to global economy were moving closer to materializing. Free fall in Chinese Yuan at the start of the week triggered US in designating China as currency manipulator. New 10%...
Sterling Tumbles as GDP Contraction Raises Recession Fears
Sterling weakens broadly today as surprised contraction in Q2 UK GDP raised concerns of recession. In the background, risk of no-deal Brexit continues to weigh on sentiments. Canadian Dollar is suffering some renewed selling in early US session after worse than expected job data. Dollar is not much better...
Sterling Soft as Markets Await UK GDP and Productions
Sterling stays soft in Asian session and remain the second worst performing one for the week. Risk of no-deal Brexit continues to weigh on the Pound. UK GDP and production data could add more selling pressure. For the week, New Zealand Dollar remains the weakest one after the surprised...
Sterling Under Pressure as Johnson Might Delay General Election after Brexit Date
Sterling is back under pressure again in early US session and is trading as the weakest for today. Prime Minister Boris Johnson urged MPs to keep the promise to people an deliver Brexit on October 31. At the same time Financial Times reported that Johnson, if loses a confidence...
Markets in Consolidations as China Trade Data Support Sentiments
The forex markets are rather quiet today as major pairs and crosses are stuck in consolidations. Better than expected trade data from China gives sentiments a mild boost. But momentum of recovery is very weak so far. Treasury yields are also trying to recover after yesterday's steep decline. For...
Yen Strengthens Again on Falling Treasury Yields, Swiss Follows
Yen strengthens broadly today, mainly follows decline in major benchmark yields. German 10-year yield hit another record low at -0.597. US 10-year yield also breaks 1.7 handle. Yields are pressured after deeper the surprised -50bps cut by RBNZ and expectation of more global central bank easing. Asian stocks ended...
New Zealand and Australian Dollars in Steep Decline after Surprised RBNZ 50bps Rate Cut
New Zealand Dollar is clearly the worst performing one today as selloff intensifies after RBNZ's surprised -50bps rate cut. Australian Dollar is also dragged down deeply while Canadian Dollar follows as third weakest so far. Asian markets ignore rebound in US stocks overnight and weaken generally. Yen and Swiss...
Dollar Recovering While Yen Softens as Currency War Fear Recedes Mildly
Market sentiments stabilized with recoveries seen in European stock markets, while US futures also point to a solid rebound. The China's Yuan also pares back some of yesterday's steep losses on rumors that a PBoC official reassured foreign companies that the currency won't continue to weaken significantly. Though, the...
Sentiments Stabilize While US-China Trade War Turns into Currency War
Asian markets tumbled sharply earlier today in response to US designation of China as currency manipulator. USD/CNH also jumped to new high at 7.1399. But China's PBoC appeared to be trying to "smooth" Yuan's decline despite hard line rhetorics elsewhere. Asian stocks quickly pared back much of today's losses....
Risk Aversion Dominates Globally as Yuan Fall Drags Sentiments
Global markets are dragged down by the steep decline in the Chinese Yuan today. Major European indices are all in deep red today, following the selloffs in Asia. DOW future is currently down over -1.4% or -370 pts. Treasury yields also suffer with German 10-year yield breaking -0.5 handle...
Free Fall in Chinese Yuan Spills Over to Asian Markets, Yen and Franc Strong
Yen and Swiss Franc extends last week's strong rally as risk aversion dominates Asian markets. A key trigger is the free fall in the Chinese Yuan, which dives through psychologically important 7 level against Dollar, in response to trade war escalations. Major Asian indices are all in deep red...
Abrupt Trade War Escalation Overshadowed Fed’s Cut, Yen and Franc Jumped
The abrupt escalation of US-China trade war overshadowed Fed's rate cut last week. As the trade talks in Shanghai yielded no constructive result, Trump announced to impose 10% on USD 300B in Chinese imports, effective September 1. The list include practically all untaxed Chinese goods, which should have much...
Yen and Franc Strong on Trade War, Dollar Mixed Despite Solid NFP
Swiss Franc and Yen continue to trade as the strongest ones for today on risk aversion, as US-China trade war escalates. Global equity markets are under heavy selling pressure, with DOW futures down around -100 pts. German 10-year yield hits another record low at -0.499 and stays soft. Dollar...