Market Overview
A Look at Market Pricing on Fed Rate Path after Powell’s U-Turn
Fed Chair Jerome Powell's speech last week was sort of a turning point. Stocks staged a strong rally and helped lifted Kiwi and Aussie as the strongest ones. Nevertheless, despite being sold off steeply, Dollar has indeed reversed much the the losses and ended as the third strongest one....
Euro Lower after Inflation Data, Dollar Pare Losses ahead of Trump-Xi Meeting
The forex markets are generally staying in familiar range as traders turn cautious ahead of G20 summit and, of course, the highly anticipated Trump-Xi summit. There are rumors flying around on whether there will be a deal of no deal. But it's no to productive to guess at this...
Dollar Recovers after FOMC Minutes, But Overall Markets in Consolidative Mode
Dollar is trying to recover again today, with rather weak momentum so far. FOMC minutes released overnight didn't prompt renewed selling in the greenback. Instead, traders are turning cautious ahead of the highly anticipated meeting between Trump and China Xi in Argentina. For now, Yen is the second strongest...
Dollar Rebound Attempt Capped by Weaker Core Inflation, Yen Gains ahead of G20
After yesterday selloff triggered by Fed Chair Jerome Powell, Dollar turns mixed today. It did try to regain some grounds in early European session. But the attempt falters after weaker than expected inflation reading from the US. Focus will now turn to minutes of the November FOMC meeting. It's...
Dollar Tumbled on Fed Powell’s Awkward Dovish Turn, FOMC Minutes Now Awaited
Dollar tumbled steeply overnight on Fed chair Jerome Powell's awkward dovish turn. Within a matter of weeks, interests rate went from being "long way from" to "just below" neutral. Markets took that as a sign Fed is nearing a pause in the current hike cycle. DOW staged a decisive...
Sterling Makes a Come Back, Dollar Awaits Fed Powell
The British Pound makes a strong come back today and is trading as the strongest one at the time of writing. UK government released its long term Brexit economic analysis, showing that Prime Minister Theresa May's Brexit deal could bring as little as -0.1% drag in GDP in 15...
Dollar Turns Mixed as Rally Attempt Lost Steam, Trump Attacks Fed Again
Dollar turned mixed after yesterday rally attempt met with no follow through commitments from bulls. Trump reiterated his attack on Fed and on Jay Powell personally. Comments from Fed officials were mixed. But the greenback paid little attention overall. Australian and New Zealand Dollar are again the strongest ones...
Sterling and Euro Turn Weaker, But Dollar Struggles to Extend Gain
Sterling and Euro are trading as the weaker ones today, in otherwise mixed markets. Dollar appeared to be lifted by Trump's renewed threats to China on tariffs. He said it's "highly unlikely" to drop the planned tariff hike on Jan 1 and more could come if no deal is...
USD/JPY Surges in Mixed Markets, Euro and Sterling Lost Momentum
The forex markets are in a rather mixed mode this week so far, except that clear strength is seen in USD/JPY. Euro's rebound yesterday was rather brief as Italy eventually decided to stick with its 2019 budget plan despite rumors of some adjustments. Sterling did get any sustainable boost...
Sentiments Lifted as Italy Shows Budget Flexibility, But No Follow Through Buying in Euro
Euro, Sterling, Australian and New Zealand Dollar are so far the stronger ones today. Euro is lifted by news that Italy is finally showing some flexibility to adjust it's 2019 budget deficit target. The development also send European stocks higher and Italian yield lower. Improvement in risk appetite helps...
Euro and Sterling Mixed after EU Approved Brexit Deal, Yen and Dollar Turn Softer
Australian Dollar leads commodity currencies mildly higher as week starts, following rebound in Asian markets. On the other hand, Yen, Dollar and Swiss Fran turn softer. Nevertheless, Chinese stock lack behind other hand Asian indices and struggle to gain. There's a risk of a turn in market sentiment later...
Dollar Higher but Trump-Xi Meeting is a Wild Card
It's another week with multiple theme happening at the same time. Swiss Franc ended as the strongest on risk aversion. Oil's free fall could be that extra lift the the Franc. Dollar ended as the second strongest, but that's mainly due to relatively smaller problems in the US. Sterling...
Euro Down on Growth Worry, Canadian Follow Oil Lower
Yen rises broadly today as risk aversion is back. Chinese stocks dived sharply in otherwise quiet Asian session. The Shanghai SSE closed down -2.49% at 2579.48 has likely completed recent corrective rebound. European indices also reversed initial gain and are trading broadly lower at the time of writing. Weak...
Sterling Vulnerable as Brexit Lift Fades, Markets Quiet Elsewhere
The forex markets are rather quiet today with major pairs and crosses bounded in tight range. Sterling was lifted by news that UK and EU agreed on the declaration on future relationship. But the boost is so far limited as bulls refuse to commit. Eyes will turn to the...
Sterling Surges as UK and EU Agreed on Future Relationship, Now Awaits Reactions from May’s Cabinet
In an originally quiet holiday trading day, Sterling surges broadly as UK and EU agreed on the declaration on future relationship. The move, while strong, is relatively limited at this point. There seems to be some hesitation for Sterling bulls. They'd probably prefer to wait and see how the...
Focus Turns to ECB Accounts But Markets Are Already in Holiday Mood
Trading is rather subdued in Asian session today as the markets are already in holiday mood. For now, Euro is trading generally higher, followed by Sterling. Australia and New Zealand turned soft again. But most pairs and crosses are just bounded inside yesterday's strength. For the week, Swiss Franc...
Yen Weakens as Stocks Rebound, But Dollar Fails to Capture after Weak Data
Overall, market sentiments stabilized today as started in Asian session. With the help of rebound in Asian and strengthen Europe, US stocks are set to open higher to pare some of yesterday's steep losses. As a result, New Zealand and Australian Dollar are the strongest ones for today so...
Risk Sentiments Stabilized in Asia, Brexit and Italy Budget Back in Spotlight
While Asian markets initially opened lower following the US, major indices turned positive after lunch. The development lifted Australian and New Zealand Dollar slightly. But Canadian Dollar is treated differently as weighed down by resumption of free fall in oil prices. The Loonie is trading as the weakest for...
Risk Aversion Intensifying, Yen and Swiss Franc Rally
Risk aversion dominates the global markets today and is intensifying. Major European indices are trading broadly lower with sign of downside acceleration. US futures also point to lower open, with DOW having triple-digit loss. In the currency markets, Australian Dollar is the weakest one for today. Euro follows as...
RBA Minutes Upbeat, But Australian Dollar Weakens on Risk Aversion
Australian Dollar is under broad based selling pressure today. RBA minutes reiterated the non-urgency for any rate move. IMF report pointed out risks are tilted to the downside in Australia. But risk aversion is more likely the factor driving Aussie down. Major Asian indices are in deep red following...