Sun, Jun 26, 2022 @ 23:25 GMT
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Market Overview

Sterling Dives after Unexpected GDP Contraction, Yen and Dollar Surge

Sterling falls broadly today after GDP unexpected contracted for the second month in April. Chance of an overall contract in Q2 is raised while there are few positive signs for Q3 for now. Meanwhile, the remaining chance of a 50bps hike by BoE later this week is basically priced...

Dollar Starts the Week Strong; Fed, SNB, BoE and BoJ to meet

Dollar rises broadly as the week starts as risk aversion extended into Asia session. But Yen is not benefiting much this time, as recovery lost momentum. Commodity currencies are also weak together with Euro. Swiss Franc and Sterling are just slightly better the others, but still weak against the...

Stagflation Worries Pushed Dollar and Yield Higher, Stocks Lower

Worries of stagflation intensified a whole lot last week. In particular, even the habitually cautious ECB pre-committed to rate hikes in July and September, while delivering new economic forecasts with sharply higher inflation and lower growth projections. Selloff in risk markets accelerated further after US CPI re-accelerated to new...

Dollar Surges as CPI Reaccelerates on Energy and Food Prices

Dollar rises strongly in early US session after CPI data. Headline inflation reaccelerated with strong rise in energy and food prices From this perspective, there is little scope for Fed to pause tightening in September. It might instead continue its 50bps per meeting plan for longer. The greenback is...

Risk Sentiment Turns Sour ahead of US CPI

Euro's post ECB rally was very short-lived, while market turned into risk-off mode later in US session. Negative sentiment continues in Asia today as US consumer inflation data is awaited. So far, Sterling is the strongest one for the week followed by Dollar, and then Canadian. Yen is the...

Euro Soars as ECB Pre-Commits to Jul and Sep Rate Hikes

Euro is attempting to rally after ECB surprisingly pre-commit to rate hikes in July and September. Germany 10-year yield also jumps to 1.45% in reaction. Commodity currencies turn slightly weaker on overall sluggish market sentiment. Dollar is mixed for now, and will need some fresh inspiration from tomorrow's CPI...

Euro Bulls Await ECB for Guidance, Yen Licking Wounds

Yen is recovering slightly in Asian session today, digesting recent steep selloff. The climax selling is temporarily past as focuses turn to ECB policy decision today and US CPI tomorrow. Euro is trading mixed for the moment, except versus Yen and Swiss Franc. To be specific, it's range bound...

Euro Rises ahead of Tomorrow’s ECB, Yen Selloff Continues

The main focus remains on Yen's selloff today, on the back of widening yield spread between Japan JGB and other major benchmark treasuries. Meanwhile, Euro appears to be strengthening in general too. Traders are probably buying up the Euro in anticipation on a hawkish ECB policy decision and press...

Dollar and Euro Mixed, Yen and Swiss Franc Staying Pressured

Weakness in Yen and Swiss Franc are both staying under selling pressure today, and there is not clear sign of bottoming yet. Sterling is currently the stronger one for the week but there is no clear breakthrough. Aussie and Loonie are digesting some gains but remain firm. Meanwhile, Dollar...

Yen and Franc Weakness Continues, Aussie Rally Faded Quickly

Selloff in Yen and Swiss Franc is still the main theme today even though US and Germany benchmark yields are retreating slightly. Australia was only lifted very briefly by the larger than expected rate hike by RBA. Though, Aussie is maintaining gains against Kiwi, which is the worst performing...

Aussie Jumps on Larger than Expected RBA Rate Hike, Yen Selloff Continues

Australian Dollar rises broadly after RBA surprised the markets by a larger than expected 50bps rate hike. It's now overpowering the strong Canadian and US Dollars. On the other hand, Yen's weakness persists on rising benchmark treasury yields in the US and Europe. Sterling is turning soft after Prime...

Sterling Rises on Positive Market Sentiment, But Momentum Weak

Overall market sentiment is positive in the market today, even though trading is subdued with some European countries on holiday. Sterling is trading higher with commodity currencies. On the other hand, Swiss Franc is is the weakest one, followed by Yen and Dollar. Euro is mixed for now. In...

RBA, ECB and US CPI in Focus This Week

Major Asia indexes trade mildly higher today but the forex markets are quiet. Trading will likely be subdued ahead with Swiss, France and Germany on bank holiday, while the US economic calendar is empty. But an eventful week will kick start with RBA rate decision tomorrow, followed by ECB...

Yen Bearishness Persists on Rising Yields, Loonie Strong on BoC and Oil

It's another poor week for Yen following the rally in benchmark treasury yields in US and Europe. It should be noted again that BoJ has a 0.25% cap on 10-year JGB yield, and thus, gaps are widening. Sterling was a distant second weakest, on risks of stagflation while Swiss...

Dollar Rises on Strong NFP, Yen Selling Persists

Dollar jumps broadly in early US session after stronger than expected headline non-farm payroll numbers. For now, the greenback is still behind Canadian and Australian Dollar in the weekly race, however. On the other hand, Yen's selloff is extending again, as pressured by strong rally in global benchmark treasury...

Yen Extending Selloff, Aussie and Loonie Strong, NFP Watched

Commodity currencies remain in the driving seat for the week, with Aussie having a slight upper hand over Loonie. Both are supported by firmer risk sentiments, as well as expectations for more tightening. Yen is the runaway loser for the week and looks set to resume broad based down...

Dollar Dips Mildly after Poor ADP Job Data

Dollar weakens mildly further after worse than expected ADP job data. But selloff is limited as traders are probably cautious ahead of tomorrow's non-farm payrolls. But overall, Yen remains the worst performing one for the week. Sterling and Euro are the next weakest even though both are trying to...

Yen Falls Further on Rising Yields, Euro and Sterling Soften Too

Yen's selloff continued overnight together with strong rebound in US 10-year yield. The Japanese currency remains pressured in Asian session and remains vulnerable. At the same time, Euro and Sterling are also weakening notably. Dollar is rebounding, but for now, Canadian and Australian are still the strongest one for...

Yen Accelerating Down, Aussie Rising With Loonie

Australian Dollar is leading commodity currencies higher again, on the back of positive market sentiment. The Aussie is additionally support by better than expected GDP data, which affirms the case for more RBA rate hike. Canadian Dollar is also firm, awaiting BoC's hawkish rate hike. Yen is the worst...

USD/JPY Rises Strong as Yield Rebounds, CAD Firm ahead of BoC

Strong rally in USD/JPY is the main focus in Asian session today, following the strong rebound in benchmark US treasury yields. Yen is also staying as the weakest one. But for now, Canadian Dollar and Australian Dollar are both stronger than the greenback. The Loonie's rally slowed some what...