Market Overview
Dovish Fed, Recession Risks, Prolonged Trade War, Brexit Fatigue
Dollar tumbled sharply overnight as FOMC economic projected turned out to be much more dovish than expected. Selling continues today, in particular against the Japanese Yen, which is lifted broadly on after the sharp decline in US treasury yields, in response to FOMC. While stock markets are just mixed,...
Sterling Dives as Markets Disapprove May’s Short Brexit Extension, Dollar Mixed ahead of FOMC
Sterling suffers another round of selloff today as the markets clearly disapprove of UK Prime Minister Theresa May's next step on Brexit. In short, she's just seeking a short delay until June 30. But any date beyond May 23, when EU elections take place, is already rejected back on...
Dollar Higher But Gain Limited by Risks of FOMC Dovishness
Dollar trade generally higher today as markets await FOMC rate decision. But gain is very limited as traders are guarding against unexpected dovishness in Fed. In particular, such dovishness could be embedded in the new economic projections. Meanwhile, Swiss Franc is the second strongest for today, followed by Euro....
German ZEW Lifts Stocks & Yield But Not Euro, Sterling Still Range Bound
The forex markets are having no clear direction for the moment. In particular, positive data from Europe were generally ignored by currencies even though yields and stocks are lifted. At the same time, there is no clarity regarding Brexit after Commons Speaker John Bercow ruled out meaningful vote on...
Sterling Confused by Brexit Chaos, Australian Dollar Lower on House Price
The financial markets are generally quiet in Asian session today, with stock indices stuck in tight range. Sterling turned mixed after knee-jerk reactions to new Brexit chaos overnight. The Pound is probably as clueless the UK government on what's next for Brexit. Australian Dollar pares back some of this...
Sterling Softens as Traders Await Brexit Clarity, Aussie Lost Momentum after Initial Rally
Sterling is trading as the weakest one for today so far after suffering some selling in European session. No support is seen for the Pound even though high profile Brexiteer Jacob Rees-Mogg indicated that he might support Prime Minister Theresa May's Brexit deal. However, loss is limited in Sterling...
Australian Dollar Surges as Asian Stocks Rally. Fed, SNB and BoE to Meet This Week
Strong rally in Chinese stocks is lifting Asian markets broadly higher today. Chinese president Xi Jinping is set to visit Italy, France and Monaco from March 21 to 26 this week. While there's no detail on the visits yet, it's believed that there could be signing of an agreement...
With No Clarity on Brexit and Trade War Yet, Focus Will Turn to FOMC Projections
Sterling ended last week as the strongest one as no-deal Brexit is now politically ruled out. But it should be noted that the path forward remains unclear, as least for a few more days. Thus, the upside breakout of Sterling was indecisive. The Pound has indeed closed below recent...
Markets Mixed ahead of Weekend, Lack Direction
The forex markets turned mixed ahead of weekend as there is a lack of theme driving the moves. Swiss France turned weakest global stock markets jump mildly. Canadian Dollar is the second weakest as WTI crude oil retreats sharply ahead of 60 handle. Sterling is the third weakest as...
Yen Lower on Asian Stocks Rally, BoJ Notes Weakness in Exports
Risk appetite is having a mild comeback in Asia today and commodity currencies are taking advantage of that. Meanwhile, Yen, Dollar and Sterling are also soft. The greenback shrugs off strong rebound in treasury yields overnight. Yen is weighed down mildly by BoJ's downgrade on exports outlook. Meanwhile, Sterling...
Sterling Mixed as UK Will Decide on Brexit Delay, Aussie Dragged Down by China
Sterling turns mixed as markets await yet another vote about Brexit in the Commons today. MPs is now given a chance to vote for delaying Brexit beyond March 29. The question is whether it would be a short delay with a plan, a short delay without a plan, or...
Sterling Spiked Higher as No-Deal Brexit Ruled Out, Aussie Weighed Down By Chinese Data
Sterling spiked higher overnight after UK Commons voted to reject no-deal Brexit. But there was no follow through buying as the Pound settles back into familiar range quickly. It's indeed the weakest one for today so far, paring some of the gains. Focus will now turn to vote on...
Canadian Dollar Jumps as WTI Crude Oil Breaks 58, Sterling Firmer ahead No-Deal Vote
The financial markets are pretty directionless and traders await vote on no-deal Brexit in the UK parliament. Sterling remains the strongest one for now on recovery. But upside is limited below near term resistance against other major currencies. That is, the Pound is merely gyrating in recently established range....
Sterling Range-Bound as Focus Turns to No-Deal Vote, Yen Firm
After much volatility in the past 24 hours, Sterling is staying in familiar range against Dollar, Euro and Yen. UK Prime Minister Theresa May's Brexit deal was voted down by the Commons. That puts Brexit back into the original path. A no-deal vote will be held today and is...
Sterling Reverses as Brexit Turns Back into a Mess after Legal Setback
Sterling reverses and dives sharply as Brexit turns into a mess again. The new assurances UK Prime Minister Theresa May got from EU provided some nervous hope earlier today. But legal advice from Attorney General Geoffrey Cox killed the chance of getting the Brexit deal through the meaningful vote...
Pound Surges on Brexit Breakthrough, Yen Lower as Risk Appetite Returns
Sterling made a massive come back and is trading as the strongest one for today, as boosted by breakthrough in Brexit. At least, UK Prime Minister Theresa May believe she got important legally binding changes that's adequate to satisfy the parliament. The Pound could be given further lift ahead...
Sterling Recovers Awaiting Brexit Clarify, Dollar Shrugs Retail Sales Data
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 retail sales. Sterling on the other hand recovers broadly after...
Sterling Lower as Crucial Brexit Votes Loom But There’s No Sign of Progress
Sterling opens the week lower and stays generally weak today. As the crucial Brexit votes loom there is no breakthrough on the issue of Irish backstop. EU's so called "concessions" were rejected by the UK government. And there is practically no chance of getting the same Brexit deal through...
Sentiments Turned Sour on Slowdown Worries, But No Panic Button Hit Yet
Looking through all the financial market news last week, the message was rather unified. That is, 2019 will be a year of slowdown, globally. Economic data, central banks, governments and independent organizations are all reinforcing this message. While ECB's "pre-emptive" dovish turn triggered wild market reactions, it was just...
Dollar Weakens after Dismal 20k NFP Growth, But Loss Limited by Improvements in Unemployment Rate and Wage Growth
Dollar trades broadly lower in early US session after poor job report which shows only 20k growth, weakest since September 2017. However, weakness is at this point limited since the set of data is not totally negative. Unemployment rate did decline while wage growth accelerated. For now, Sterling is...