Market Overview
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...
Yen Rally Accelerates as Shocking China Export Contraction Adds to ECB Misery
The impact of dovish ECB quickly spread to the whole world. Following weakness in the US and Europe, Asian stocks tumble broadly today. Adding to the misery, China's February trade data were shockingly terrible, recording -20.7% yoy contraction in exports. Weak export outlook adds to the case of "tough...
EUR/USD Dives after All-the-Way Dovish ECB, Heading Towards 1.1215 Low
Euro tumbles broadly after ECB delivered and all-the-way dovish meeting. There will be no rate hike until at least 2020. New TLTRO-III is announced. ECB expects sizeable moderation in growth. GDP growth forecast was revised down substantially. Yet, risks surrounding outlook are still tilted to the downside. Selloff in...
Euro Soft ahead of Dovish ECB, Canadian Sings BoC Blues
Asian markets are mixed today despite selloff in US overnight. Investors are generally non-committal, probably waiting for more concrete developments regarding US-China trade negotiations and Brexit. Though, the decline in US treasury yields is worth a note as 10-year yield closed back below 2.7 handle at 2.692. It remains...
US Trade Deficit Ballooned to Decade High, Dollar Shrugs and Stays Firm
Yen and Dollar are trading as the strongest ones for today so far. Slightly lower than expected ADP job growth in February was offset by larger upward revision in January's data. US trade deficit surged for 2018 as a whole jumped to highest in a decade. But these data...
Australian Dollar Tumbles on Bet of RBA Rate Cuts after Dismal GDP
Australian Dollar tumbles broadly today as traders add to bet of RBA rate cuts after poor Q4 GDP. RBA Governor Philip Lowe basically maintained upbeat view on the outlook in a speech, but that was largely ignored. Sterling is also among the weakest as UK Attorney General Geoffrey Cox's...
Sterling Suffers Fresh Selling on Irish Backstop Deadlock, Dollar Still Attempting to Rally
Sterling trades broadly lower today and suffers fresh selling in early US session. Some attributes the decline to reports that UK Attorney General Geoffrey Cox and Brexit Minister Stephen Barclay won't get any breakthrough on Irish backstop in Brussels today. But it is actually hardly any news. UK government...
Dollar Supported by Improving Yield Curve, Yet to Take Out Key Resistance
The financial markets are relatively quite in Asia today. Stocks turned mixed following the pull back in US overnight. But losses are limited while the resilient Chinese SSE is having slight gain. Chinese government lowered 2019 growth target to 6.0-6.5%, with the lower bound at lowest pace in more...
Euro Lower Despite Stabilization Signs, Risk Appetite Continues on Trade
Global stock markets are generally higher today, continuing to ride on trade optimism. White House economic adviser Kevin Hassett added to the positive mood and said US Trade Representative Robert Lighthizer has made a lot of progress with China. And the deal may be finished some time soon. Also,...