Market Overview
Yen Setting Up Bullish Reversal, Dollar Index Ready for 100 and Below
Japanese Yen exhibited an impressive rally last week and ended as the strongest performer. The move was spurred by Japan's substantial wage growth, which shot JGB yield higher and countered the impact of rising benchmark yields in the US and Eurozone. In light of these developments, signs are pointing...
Dollar Down after as NFP Provides No Shock
Dollar falls broadly after US non-farm payroll report didn't provide any shock to the markets. Nevertheless, the headline job growth was still solid, with unemployment rate steady, and wages growth staying at a relatively high level. US 10-year yield dipped initially following the release by quickly recovered. Stocks futures...
Risk-Off Sentiment Grips Markets ahead of NFP, But Currencies Mixed
Markets are firmly entrenched in a risk-off mode as focus shifts to impending US Non-Farm Payroll data. Expectations for two additional Fed hikes have been gaining traction this week following a string of strong employment data. The deep pullback in US equities overnight extended into Asian trading hours. Concurrently,...
Strong ADP Shoots Yield Higher and Hammers Stocks, But Dollar Indecisive
Today's release of US ADP jobs data, showing stellar job growth yet continuing slowdown in wage growth, has left Dollar traders seemingly indecisive. Treasury yields have surged post-release, with 2-year year yield hitting its highest level since 2007 and benchmark 10-year yield breaking 4% threshold. US futures have also...
US-China Tensions Weigh on Market Mood, Strengthen Yen and Dollar
Yen and Dollar are gaining momentum in today's trading as market sentiment appears to have soured in Asia. The development could be interpreted more as a response to escalating US-China tensions rather than hawkish tone of FOMC minutes released overnight. After all, the minutes just reinforced expectations of further...
Markets Turning Cautious ahead of FOMC Minutes, 10-Year Yield Making Progress
Dollar and Japanese Yen are posting marginal gains as market attention shifts towards the release of June FOMC meeting minutes. Concurrently, major European indices are slightly down, reflecting a similar sentiment in US futures market. This development has put commodity currencies on the back foot. However, neither Dollar nor...
Subdued Trading Continues as Dollar Range Bound, Gold Extending Recovery
Commodity currencies are maintaining their position as the stronger performers of the week, while overall trading continues in a noticeably subdued manner. Both Dollar and Yen are seen navigating within familiar ranges against their European counterparts. Market volatility might experience a slight uptick as US traders return from holiday...
Aussie Down Slightly after RBA, Bitcoin Ready for Breakout in Calm Markets
Australian Dollar dips slightly after RBA decided stand pat. But it hasn't seen substantial follow through selling pressure yet. While the decision might have surprised half of the market participants, it doesn't change the tightening path of the central bank. It's more of a decision on delivering the hike...
Dollar Down Slightly after ISM Manufacturing, Aussie Awaits RBA
Dollar falls broadly after ISM Manufacturing index indciates further deterioration in the sector. But loss is so far limited. Overall markets remain quiet. Swiss Franc and Yen persist are the softer performers. The Franc felt slight impact of Swiss CPI readings, which were lower than anticipated. However, market reaction...
Asian Markets Lifted by Positive BoJ Tankan Survey, Overlook Weak Chinese Manufacturing Data
Asian markets began the trading week on a high note, largely driven by a rise in Japan's Nikkei index, which was buoyed by encouraging results from BoJ Tankan Survey. Meanwhile, market participants seemed to overlook weak data from China's manufacturing sector. Australian and New Zealand dollars led the other...
Markets Resist Fed’s Outlook of Multiple Hikes: Bonds and Stocks Disagree, Dollar Rally Halted
Dollar bulls experienced a somewhat disheartening week, as the initial rally supported by hawkish remarks from Fed Chair was halted by subsequent inflation data release. Consequently, the greenback managed to secure only the third position for the week, trailing behind Swiss Franc and Euro.
The vigorous late-week rally in US...
Dollar Dips as Headline and Core PCE Inflation Slowed
Dollar sees a significant dip in early US session after release of economic data showed a slower than expected headline PCE inflation and a slight decline in core PCE inflation. In contrast, Eurozone reported a tick up in core inflation for the same period. Stock futures rally on this...
Euro and Dollar Await Inflation Data as Markets Tread Water
In the run-up to the close of the first half, forex markets appear to be treading water in today's Asian session. Market responses to China's lackluster PMI data have been tepid, while Yen remains largely unfazed by Japan's industrial production figures and Tokyo's CPI. Asian indexes are mixed with...
Currency Markets in Holding Pattern, Gold Breaches 1900
In the currency trading arena, there's been a notable lack of movement today. Gold has caught the market's attention, sliding past the 1900 psychological level. Yet Dollar remains relatively undisturbed, also showing no significant response to the latest jobless claim data and Q1 GDP final figures. Likewise, the release...
Dollar Extending Rebound in Quiet Markets, Central Bankers Triggered No Volatility
In today's Asian trading session, forex markets are experiencing a lull, with most of the major currency pairs and crosses moving within the boundaries set by yesterday's trading ranges. The anticipated volatility sparked by the robust remarks from the heads of the ECB, Fed, BoE, and BoJ during the...
Sterling Diving While Dollar Rebounds, Aussie Staying Weak
Forex markets today are leaning towards mild risk-off sentiment, with traders cautiously awaiting comments from leading central bankers at the ECB forum. This cautious sentiment, interestingly, does not seem to be having a substantial effect on the stock or bond markets yet.
British Pound is experiencing fresh selling, despite expectations...
Aussie Tumbles on CPI Data, Markets Eye Comments from Central Bankers
Australian Dollar is experiencing a wild ride this week, tumbling in Asian trading hours due to lower-than-anticipated CPI results. The "encouraging" data has raised speculation about a potential pause in RBA's tightening plans next week. There are also talks that the hike month was the last in the cycle....
Euro Rides the High Wave, Soaring Against Yen and Others
In today's trading, Euro takes the limelight, soaring broadly and reaching new heights against the frail Yen. While comments from ECB officials continued to be hawkish, there was basically nothing substantially new. The rationale propelling the shared currency is yet unclear. Following closely behind, Aussie and Kiwi mark themselves...
Aussie Bounces Together with Yuan, Canadian Awaits CPI
In an otherwise lackluster Asian trading session, Chinese actions add a zing today. The rebound in Yuan, propelled by China's stepped-up measures to curb its slide, provided a boost to stock markets in both China and Hong Kong. The ripple effects are also being felt by Aussie and Kiwi,...
Swiss Franc Capitalizes on Disappointing German Data and Geopolitical Uncertainty
Today sees Swiss Franc making notable gains due to an array of risk-averse factors at play. Disheartening data on German business sentiment fuels concerns about a protracted recession in the country and by extension, the broader Eurozone. While the weekend's events surrounding Wagner mutiny may not have triggered a...