Market Overview
Dollar Rally Continues on Risk-Off Sentiment and Rising Yields; Markets Eye BoE Rate Decision
Dollar continues to strengthen today, bolstered by prevailing risk-off sentiment that has carried over from US to Asian markets. The surge in benchmark 10-year yields is providing additional support to the greenback, as even Euro has finally conceded a near-term support level against Dollar, further affirming the underlying momentum.
Meanwhile,...
Dollar Getting a Boost from Strong ADP Data and Risk Aversion
Dollar is making an effort to extend its near term rebound in early US session, bolstered by significantly stronger-than-expected ADP private job report. Concurrently, the greenback is finding support from the risk-off mood triggered by Fitch's unexpected downgrade of US sovereign rating, which sent global equities lower. However, Dollar's...
Asian Markets Skittish Following Fitch’s US Rating Downgrade; Commodity Currencies Bear the Brunt
Market sentiment in Asia today leans heavily toward risk aversion, following the unexpected move by Fitch Ratings to downgrade US sovereign rating. Consequently, commodity currencies are grappling with strong sell-offs. New Zealand Dollar is leading the downward spiral, despite strong wage growth reflected Q2's employment data. Australian Dollar, still...
Dollar Rising With Treasury Yields, Aussie Selloff Gains Momentum
Dollar rises broadly today, in the first trading day of August. The greenback is bolstered by mild risk aversion and rallying US yields. Meanwhile, traders are also probably starting to position ahead of the heavy weight data this week. However, the greenback is stuck below last week's high against...
Aussie Slips after RBA But Downside Limited, Dollar Firmer Ahead of ISM Manufacturing
Australian Dollar is trading broadly lower after RBA opted to keep interest rates on hold. However, the currency's losses remain contained was not too much out of expectations. RBA's continued bias towards tightening, albeit arguably less emphatic than before, is currently helping to limit Aussie's downside, keeping it within...
Copper Takes Aussie Higher ahead of RBA
Commodity currencies are trading generally higher today on mildly positive market sentiment. Australian Dollar is the stronger one among them, ahead of RBA's rate decision tomorrow. Opinions on whether RBA would hike by 25bps next month (i.e. August 1 tomorrow) are divided . Major local banks exhibit this split...
Yen Extending Fall, Markets Eye RBA and BoE, US NFP This Week
Yen extended its late last week's slide in Asian session today, a downward trajectory that prevailed despite a notable ascent in 10-year JGB yields above the 0.6% mark. Market watchers seemed to have absorbed BoJ's recent communication effectively — that the added flexibility to its yield curve control doesn't...
Yen Staying Bearish after a Wild Ride; Dollar Index Presses Key Resistance
The global financial markets found themselves in a flurry of volatility in the past week, underpinned by policy decision of three major central banks in North American, Europe, and Asia. Yen and Nikkei had the wildest roller-coaster ride in reaction to BoJ's tweak to their Yield Curve Control. In...
Dollar Down Again on PCE Inflation, Yen Reverses Too
Dollar is reversing much of yesterday's gain as both headline and core PCE price indexes showed more than expected moderation. Meanwhile, Yen is also reversing earlier gains around BoJ policy decisions. On the other hand, European majors are making a notable comeback, with Sterling outperforming Euro and Swiss Franc....
Yen Skyrockets as BoJ Moves a Step Towards Stimulus Exit, Dollar Staying Firm
Yen was already rallying ahead of BoJ policy decision, and managed to maintain most of its advances, despite some post-announcement jitters. Initial reactions saw some gains pared back as the policy appeared largely unchanged on the surface. However, some key alterations, including the central bank's decision to buy 10-year...
Dollar Resurges after Strong GDP Data, Euro Weakens Post ECB Rate Hike
Euro turns weaker after ECB's expected rate hike. Downside momentum is also picking up when ECB President Christine Lagarde indicated that even minor alterations in the statement's phrasing were intentional. ECB has shifted its wording from interest rates "will be brought to" to will be "set" at a sufficiently...
Bullish Sentiment Surfaces in Asia after Fed Hike, ECB and US GDP Awaited
Asian markets are trading in positive mood today, even though US stocks were unmoved by FOMC's rate hike overnight. Fed Chair Jerome Powell was predictably non-committal regarding next policy decision. But investors appear content to go along with the prevailing trend. Meanwhile, this upbeat sentiment is giving a notable...
Dollar Mixed as FOMC Looms, Aussie Selloff Continues
The financial markets appear to be a little on risk-off mode today, as FOMC rate decision is awaited. Additionally, ECB will announce policy decision tomorrow, followed by BoJ on Friday. Commodity currencies are the worst performers so far, as led by Aussie which was pressured following CPI data earlier...
Aussie Recovers after Brief CPI Triggered; Traders Await FOMC Hike
In today's Asian trading, Australian Dollar took a brief dip following release of consumer inflation data that indicated more rapid deceleration than predicted. This dampened expectations for an additional rate hike by RBA in early August. Nonetheless, Aussie managed to regain stability promptly, reversing some of the selloff. As...
Euro Trades Lower on Disappointing German Ifo Data
Euro falls broadly today following release of weaker than expected German Ifo business climate data, although losses remain somewhat contained for the moment. It appears traders are holding their bets in anticipation of the upcoming FOMC and ECB rate decisions. Further, with July drawing to a close and the...
Aussie Rises With Yuan and Copper, Gold Poised for Rebound
Australian Dollar advances broadly today, buoyed by optimism surrounding news of stimulus from the Chinese government. This positive outlook has also lifted sentiment for Chinese Yuan and Copper. New Zealand Dollar has similarly benefited from this favorable sentiment, which is providing support to Sterling as well. Meanwhile, Dollar is...
Euro and Sterling Sink on Disappointing PMI Data, Bitcoin Tumbling
Euro and British Pound face some downward pressure today, following dismal PMI data that raises concerns about the prospect of further economic contraction in Eurozone and UK. With the German Ifo business climate index on the horizon tomorrow and ECB rate decision due on Thursday, Euro is likely to...
PMI Data Highlight Today, But Main Focuses on Fed and ECB Later in the Week
As a typical Monday Asian session commences, activity in the financial markets is somewhat muted. Nikkei is displaying a notable rise, although this primarily reflects continuation of its recent flip-flopping pattern within an established range, indicative of ongoing consolidation. A similar pattern is observed across other major Asian markets...
Dollar Turned into Consolidation Phase as Selling Passed Climax
Dollar recovered broadly last week and it seemed to have emerged from its near-term selling climax. While it's premature to call for bullish trend reversal, the greenback has likely entered at least a consolidation phase, with potential for a more robust recovery on the horizon. Dollar's next move will...
Yen Plunges Amidst BoJ’s Speculations; Fresh Selling Seen in Sterling
Japanese Yen experienced a sharp fall today after reports emerged suggesting that BoJ is "leaning towards" maintaining its current yield curve control policy unchanged in the upcoming meeting next week. The development has come in the wake of Japanese inflation data for June, which showed a relatively unchanged yet...