Market Overview
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...
Sterling Recovers after Strong Retail Sales; Dollar Slips after Yesterday’s Rebound
British Pound is making broad recoveries following stronger than anticipated retail sales, although signs of a durable rebound remain elusive. Concurrently, Japanese Yen displayed general weakness. Despite solid inflation data from Japan, the figures were not robust enough to force a policy shift from BoJ. Australian and New Zealand...
Dollar Attempting Stronger Rebound in Subdued Trading
Today's trading has been notably subdued after Asian session, characterized by limited news flow from Europe, and just US jobless claims and Philadelphia Fed survey in early US session. Sterling weakness continues to be a dominant theme for the week, experiencing a fresh round of selling as US session...
Australian Dollar Rebounds Notably on Employment Data, Resurgence in Copper and Yuan
Australian Dollar is making a notable rebound today, largely supported by strong employment data, rebound in Copper price, and a resurgence in Chinese Yuan. In tandem, New Zealand Dollar is closely trailing the second strongest performer. British Pound languishes as the worst performer, still feeling the drag from yesterday's...
Sterling Selloff Continues Amid Dwindling Expectations of Aggressive BoE Hike, Dollar Might Recover Further
Sterling continues its descent, which was spurred on by the fallout from UK CPI data, in early US session. The odds of a 50 bps rate hike from BoE in August are being reassessed, now standing at a mere 50% probability. Furthermore, expectations of a peak rate have also...
Sterling Takes a Dive as UK Inflation Data Ease Some Pressure on BoE
Sterling falls sharply following the release of June's UK CPI figures which revealed faster than expected slowdown in both headline and core inflation. Despite the persistent high inflation levels, these figures suggest BoE may not need to raise interest rates as aggressively as previously anticipated by some economists, potentially...
Canadian Dollar Dips Slightly after CPI, Euro Rally Fades
Canadian Dollar is having a mild slump in early US session following lower-than-expected headline CPI reading. However, the currency's slide was largely restrained, primarily due to the base-year effects of gasoline prices contributing to the deceleration in consumer inflation. Concurrently, Australian and New Zealand Dollars also experienced a slight...
Markets in Waiting Mode ahead of Canada CPI and US Retail Sales, Eyes on USD/CAD
Asian markets presented a subdued trading environment today, despite overnight rallies in their US counterparts. A notable exception is that Hong Kong's stock market underwent a significant tumble, taking a step back after a day off. Elsewhere, indices generally hovered around flat levels within a tight range. In the...
Commodities Down in Mild Risk-off Markets, Swiss Franc Firm With Dollar and Euro
With mild risk aversion permeating the markets, Gold and some other commodities are weakening notably today. China's latest economic indicators paint a dreary picture – a sluggish recovery, dampened consumer demand, record youth unemployment, and escalating deflation risk. With a key meeting of the Chinese Communist Party's Politburo around...
Market Mood Sours on Chinese Data; Focus Shifts to More Global CPI Readings
The financial markets kicked off the week on a sour note, grappling with disappointing Chinese GDP figures that undercut the overall sentiment. Despite a mixed bag of data for June, the weaker-than-expected economic expansion in China sent Australian Dollar – a bellwether for the commodities sector – on a...
Dollar Nose Dived after Inflation Data, But Two Hikes Still on the Card?
Following the release of data indicating a steeper than anticipated slowdown in inflation, Dollar saw a marked decline last week, securing its position as the week's most significant loser in the currency markets. Concurrently, surge in stocks and tumble in benchmark treasury yields accompanied Dollar's descent.
At this juncture, it...
Dollar Staying Pressured Amid Risk-On Sentiment, Eyes on Michigan Consumer Sentiment Report
Dollar is still facing much broad-based pressure as risk-on sentiment continues to dominate the markets. A slight recovery could be on the cards due to pre-weekend profit-taking, although this largely hinges on the inflation expectation figures in the forthcoming University of Michigan Consumer Sentiment report. Should the inflation expectations...
Dollar Woes Persist, Aussie Capitalizes on Copper’s Revival
Dollar's extended selloff continues today, showing no clear signs of a turnaround. The slump comes on the back of the release of PPI and jobless claims data, which failed to inspire optimism among Dollar bulls. Meanwhile, global risk-on sentiment is prevailing, with noticeable rally in stock markets and corresponding...
Dollar Might Take a Breather after Steep Selloff, Swiss Franc Taking the Top Spot
Following a significant post-CPI sell-off, Dollar's plunge appears to be losing some momentum during today's Asian trading session on oversold conditions. However, the greenback is yet to demonstrate any considerable signs of a rebound. Investors seem buoyed by the waning likelihood of Fed extending its tightening phase beyond the...
Dollar’s Plunge Deepens After Underwhelming Consumer Inflation Figures
Dollar's decline accelerates again following US inflation data that reflected a more substantial than anticipated slowing in both core and headline CPI for June. Although the underwhelming data might not deter Fed from delivering another rate hike later this month, it may alleviate pressure for subsequent increases.
In response to...
Dollar Slide Accelerates ahead of US CPI; BoC to Hike, RBNZ Stood Pat
Dollar is facing an intensified selloff in today's Asian trading session, with the currency's decline appearing to accelerate. The return of risk-on sentiment, signaled by overnight gains in major US stock indexes, has added additional weight on the greenback. Market watchers are eagerly anticipating the release of US CPI...
EUR/GBP Downside Breakout on Robust UK Wage Growth, Poor Eurozone Economic Sentiment
British Pound sees a broad rally today, fueled by robust wage growth, indicating that secondary inflationary pressure remains persistent, which will likely force BoE to continue tightening. In contrast, Euro fell sharply due to plunging economic sentiment, leading to a downside breakout in EUR/GBP, resuming its recent downward trend.
As...
Dollar Decline Intensifies, Yen Holding Pole Position
Dollar's selloff gained momentum in today's Asian trading session, breaking through near-term support levels against Euro and Sterling. The market remains skeptical about the possibility of Fed implementing two or more rate hikes this year. With US CPI release scheduled for tomorrow, traders appear to be positioning themselves for...
Antipodean Currencies Under Pressure With Sterling, Euro Shrugs Weak Investor Confidence
Australian and New Zealand Dollar are under some selling pressure today, with the Sterling following suit. These currency fluctuations do not appear to be tied to any specific market developments, but their concurrent weakness may suggest a cautious undertone prevalent among risk-averse traders. Notably, market participants might be realigning...
Mild Dollar Recovery; Mixed Risk Markets; Eyes on RBNZ Hold and BoC Hike
Dollar recovers mildly during today's Asian trading session but remains generally weak. Concurrently, Japanese Yen has begun to pare back some of its late rally from last week, but there is no sign of sustained selling. Risk markets are showing a mixed performance, reacting minimally to China's data that...