Market Overview
New Zealand Dollar Tumbles on RBNZ Dovish Rate Cut, Yen Firm as Global Stocks Tumble on Trade War
Yen remains the strongest one for today, extending this week's rally on risk aversion. Following steep decline in the US, Asian markets open broadly lower and stay pressured. Threat of full-blown trade war continues to weigh on investors' sentiments. New round of tariffs on Chinese imports is ready to...
Yen and Dollar Take Spotlights on Risk Aversion, Trade War Concerns Stay
Risk aversion remains the dominant theme in the global financial markets on trade war threats. In particular, German 10-year yield turns negative again on safe haven flows. Based on currently available information, the trigger for Trump's escalation was China's pull back on its commitments in the negotiation progress. And...
The Show of US-China Trade Talks Will Go On Despite Tariff Threats
Markets sentiments stabilized as more information was revealed regarding escalation of US-China trade tensions. The Chinese delegation will still travel to the US, with Vice Premier Liu He remaining as the lead negotiator. While there are still a lot of uncertainties with tariffs threats on, there is a least...
Yen and Dollar Stand Tall on US-China Trade War Threat
Imminent threat of full blown US-China trade war is the dominant theme in the global financial markets today. Chinese stocks were hardest hit, down the most in more than three years. Other Asian markets were generally down while Japan continued to enjoy its ultra-long 10-day holiday. European markets are...
Sentiments Turn Sour as Trump Decides to Escalate US-China Trade War When a Deal is Very Close
Risk sentiments are knocked down heavily in Asia after Trump confused the markets by announcement to push trade war with China to full blown level. Just as investors were told dozens of times by Trump and his administration that both sides were "very close" to a deal, Trump made...
Sterling Surged as UK Politicians Could Finally Drop Differences to Deliver Brexit
Sterling was the star winner last week as boosted by renewed hope of a Brexit deal between the government and opposition. Poor results for both Conservatives and Labours are piling pressure on both parties to end the Brexit standoff and drama as soon as possible. In short, Conservatives lost...
Dollar Inaction to Strong NFP, Wage Growth Offsets Strong Job Number
Even though US non-farm payroll report came in much stronger than expected. There is no apparent buying in Dollar as initial reactions. Weaker than expected wage growth seems to be a factor that's capping the greenback's strength. On the other hand, stocks are apparently boosted with DOW futures trading...
Dollar Bulls in Hesitation as Markets Await US Non-Farm Payrolls
Dollar turns mixed in Asian session today as markets turn their focus to non-farm payroll reports from US. The greenback has indeed been regaining grounds this gradually this week. In particular, it's helped by Fed Chair Jerome Powell who talked down the need of rate cut. But buyers are...
BoE Triggers Little Reactions, Forex Markets Staying in Slow Motions
The forex markets are in slow motion today. Major pairs and crosses are bounded inside yesterday's range, with no follow through movement yet. BoE Super Thursday is a high profile event, but triggers no sustainable price actions yet. It's rather hard to react to BoE's new economic projections. Growth...
Dollar Rebounds after Fed Powell Talked Down Rate Cut, Focus Turns to BoE
The forex markets are generally quiet in Asian session today. Major pairs and crosses are bounded inside yesterday's range. Australian and New Zealand Dollars are mildly firmer while Yen and Canadian are the weakest. Dollar rebound overnight after Fed Chair Jerome Powell talked down the chance of a rate...
Dollar Ignores Strong ADP, Drops on Weak ISM, Looks to Fed for Rescue
Economic data released from the US are mixed today. ADP report shows much stronger than expected growth in private sector jobs. However, ISM manufacturing points to deep cool down in the manufacturing sector, with deteriorating new orders, prices and employment. Dollar chooses to react to the negative one and...
Dollar Generally Lower as Markets Await Fed Powell’s Comments on Inflation and Interest Rates
Dollar trades broadly lower in thin holiday market as trades await FOMC rate decision. There is no expectation of a change in interest rate nor Fed's patient stance. But Fed chair Jerome Powell's comments on inflation could make or break recent rally in the greenback. For now, Dollar it's...
Euro Surges as Data Paint Improved Growth and Inflation Outlook
Euro surges broadly today as boosted a series of better than expected economic data. GDP beat market expectations and argue that the slowdown wasn't as worse as expected. In particular, strength was also seen in problematic countries like Italy and Spain. Unemployment rate dropped to lowest in more than...
China PMI Misses Raise Doubt on Recovery, Australian Dollar Turns Soft
S&P 500 and NASDAQ made record highs overnight but sentiments turned around in Asia. Weaker than expected China PMIs raised doubt on the sustainability of the post lunar new year recovery. There is even question on whether slowdown has bottomed. Nevertheless, Chinese stocks remain resilient so far, with Shanghai...
Dollar Mildly Higher after Strong Personal Spending, Upside Capped by Cooling Core Inflation
Dollar strengthens mildly in early US session as supported by strong personal spending growth in March. Though, upside is capped by steadily cooling core inflation. For now, today's set of data is not decisive enough to trigger a breakout in the greenback yet. Dollar would likely engage in more...
Markets Steady Ahead of Busy Week With Trade Talks, Fed, BoE, and Heavy Weight Data
The forex markets are rather quiet in Asia, as Japan starts an ultra-long 10-day holiday ahead of Imperial succession. New Zealand and Australian Dollar extends the corrective recovery started late last week, ignoring initial weakness in Chinese stocks. On the other hand, Yen is generally lower, followed by Canadian....
Worsening Inflation, Dovish Central Banks and Falling Treasury Yields
Yen and Dollar were the biggest winners last week on worsening inflation outlook, dovish central banks and falling treasury yields. Australian Dollar was the weakest one as CPI just rose 1.3% yoy in Q1 versus expectation of 1.5% yoy. The added heavy weight to the case of RBA rate...
Strong US GDP With Weak Details Send Dollar Lower, 10-Yr Yield Breaks 2.5
Dollar spikes higher in early US session as Q1 GDP grew much more than market expectations. However, the greenback quickly pulled back as details are seen as much weaker than the headline number suggests. It's actually a set of data welcome by stock traders as Fed will likely stay...
Dollar and Yen Pare Gains as Focus Turns to US Q1 GDP
Commodity currencies recover broadly in Asian session as risk markets somewhat stabilized. US stocks closed mixed with DOW paring much of initial losses overnight. New Zealand Dollar is additional supported by record exports in March, and helps lift Australian too. Yen is the weakest so far for today, followed...
Strong Durable Goods Fail to Boost Dollar, Yen Taking the Driving Seat
Yen takes the driving seat from Dollar today as markets could be turning into risk averse mode. The greenback is still firm and remains the second strongest for the week. But strong US durable goods orders is not giving it enough boost to extend this week's rally. On the...