Market Overview
Kiwi Dives after RBNZ, Fed Officials Talk Down Negative Rates
New Zealand Dollar drops broadly today following RBNZ's decision to nearly double the QE program, and indicates its openness to negative rates. Australian Dollar is following as a distant second weakest. The sharp decline in US stocks overnight doesn't carry forward to Asian markets. Other major currencies are relatively...
Dollar Tumbles on Record Core CPI Decline, and Improving Sentiments
Dollar is sold off notably in early US session after data showed record decline in core inflation reading. In the background, sentiments also improved mildly on WHO's "potentially positive data" comments. Following Dollar, Canadian is the second weakest for the day, then Yen. On the other hand, New Zealand...
Aussie Softens on Trade Tensions with China, Loss Limited
Asian markets started with mild risk aversion today but sentiments quickly stabilized. Australian Dollar is pressured after China bans four of its abattoirs, but there is no follow through selling afterwards. While the Aussie is staying soft, it's holding generally above yesterday's low for the moment. Canadian Dollar is...
Dollar Rebounds Broadly as Investor Sentiment Turns
Dollar rebounds broadly today as investors turn cautious since European session. Fear of a second wave of coronavirus pandemic is cited by some as a reason for mild risk aversion. US-China tension is another factor named. For now, Swiss Franc is following as the second strongest, then Euro. On...
Yen Tumbles as Markets Return to Risk Appetite
Return to risk appetite is a main theme in the markets as another week starts. Another rate move by China's PBoC support sentiments in general. Yen drops broadly as a result while Canadian and Australian Dollar strengthen. Though, New Zealand Dollar is somewhat under pressure ahead of this week's...
Risk Rally Inconclusive, Dollar Index and Gold Range Bound
Global stock markets somewhat strengthened last week as most countries continued with their coronavirus lockdown exit plan. Yet, with the exception of NASDAQ, major indices were capped below prior week's high. Tensions between US and China remained a major focus. News flows on the topic were confusing. US Trade...
Markets Shrug Record Labor Down Turn, Dollar Soft With Yen on Risk Sentiments
Economic data from the US shows the sharpest labor downturn in history due to coronavirus pandemic. Yet, the financial markets have little reactions to the terrible data. US futures are pointing to higher open while European indices are in black. Investors are somewhat relieved by a formal statement by...
Dollar Softens on Negative Rate Talks, US-China Trade Deal Made Progress
Dollar turned weaker overnight as markets on talks that Fed could eventually go into negative interest rates. Safe haven flows also continued to recede in generally, with NASDAQ extending recent rebound, even though DOW's rally was still capped. Australian Dollar continues to surge higher, shrugging off RBA's economic projections....
Yen Dips on Higher Stocks and Oil, Dollar Shrugs Job Numbers
Risk sentiments seem to have firm up again today despite rather poor economic data. Major stock indices in Europe are in black while US futures point to higher open. WTI crude oil is also extending recent rebound, with June contract now above 26.2. Commodity currencies are generally higher as...
Sterling Recovers after BoE, Yen Paring Gains
Sterling recovers mildly today after BoE left monetary policy unchanged as widely expected. Two members voted for an increase in asset purchase but that was shrugged off by the markets. Though, Australian Dollar is even stronger for the moment. Yen weakens mildly together with Swiss Franc. But for the...
Dollar Firm Despite Historic ADP Job Loss, But Yen Stronger
Yen is staying as the strongest one today while the financial markets are generally mixed. Dollar is not too bothered by the ADP report which showed -20m private job losses. It's currently trading as the second strongest, followed by Australian. Sterling is currently the weakest ones with Euro, after...
Yen Surges Through Resistance Against Dollar and Euro
Yen is trading generally higher is Asian session and broke some near term resistance level. Risk sentiments are mixed in major Asian markets. While US stocks ended with gains overnight, the closes in major indices were indeed lower then opens. That's a signal of indecisiveness among the bulls. Commodity...
Euro Tumbles as German Court Judges ECB Bond Buying Partially Contravenes the Law
Euro tumbles broadly today, together with the Swiss Franc, after Germany's constitutional court has ruled that ECB's stimulus program is partly in conflict with the country's law. ECB has to prove that it's QE program isn't providing monetary financing to heavily indebted governments. The German government is also required...
Aussie Follows Stocks Higher, Steady after RBA
Australian Dollar strengthen mildly today following recovery in the stock markets. It remains steady after RBA left monetary policy unchanged as widely expected. Rally in oil price, with WTI crude oil up 6.5% at 21.7, is helping sentiments in general, as well as the Canadian Dollar. On the other...
Euro Weighed Down by Sentiment Indicators, Markets in Mild Risk-Off
US-China tension continues to be a major theme today, driving global stocks and US futures down. Developments are happening on many fronts. There will be proposed law changes to allow private entities to sue China for coronavirus damages. Investment of federal retirement funds in Chinese stocks could be blocked....
Markets in Defense on US-China Tensions, Dollar and Yen Higher
Yen and Dollar trade generally higher in Asian session today. Trading is relatively subdued with Japan and China on holiday. Yet, the theme of US-China tension drives some risk-off moves. May didn't start well as investors seemed to be rushing to reverse April's risk-on moves. As for today, New...
From Coronavirus Lockdown Exit to New US-China Tariff war
Economic data releases have probably never been that meaningless in history. Traders were not too concerned that the Q1, March or even April data were worse than terrible. Instead, hope of lockdown exit, at least partially, have lifted risk markets for the initial part of the week. Risks of...
May Starts in Risk Aversion, Yen and Franc Surge
Yen and Swiss Franc surge broadly today as risk aversion seems to be back as May starts. Warnings from Amazon and Apple are cited as the reason for the decline in US futures. On the other hand, Chinese is trading sharply lower on concerns that US President Donald Trump...
Aussie Turns Lower as Markets Reversing April’s Moves
Australian Dollar is leading commodity currencies broadly lower in Asian session today, as markets seem to be rushing to reverse April's moves. Euro has somewhat taken the lead overnight, pulling Swiss Franc higher too, after initial reactions to non-eventful ECB. Yen is also trading generally lower in relatively quiet...
Dollar Recovering as Risk Appetite Recedes, Euro Turns Softer after ECB
Risk appetite recedes mildly today as European indices turn negative after initial gain, dragging US futures lower too. Euro is originally rather unmoved by ECB's policy decision as well as press conference. But some weakness is seen at the time of writing. Traders seem to be betting more on...