Market Overview
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...
Markets Staying in Tight Range, Inflation and Sentiment Data to Highlight the Week
The financial markets are rather steady in Asian session today, showing little reaction to the brief "uprising" in Russia. Major indexes generally traded in tight range, with the exception of China which is just catching up the holidays on Thursday and Friday. In the currency markets, Aussie is the...
Recession Concerns Eclipsed a Week Laden with Key Event; Aussie Bear the Brunt
A cloud of recession fears dominated a week full of significant events, with disappointing PMI data, particularly from Eurozone and US, dampening sentiment towards the end. Investors also grappled with mismatched expectations concerning Chinese fiscal stimulus, which added additional pressure on global stock indexes, driving them lower by the...
Euro Dips on Poor PMI Data, Dollar Losing Some Momentum
Dollar has launched a broad-based rebound in today's market. However, momentum appears to be faltering against its European counterparts in early U.S. trading session. Although it continues to perform strongly against Yen and Australian dollar, the greenback has been struggling to break last week's high against other key currencies....
Dollar Rebounds on Short Covering, Yen Extending Decline
Dollar saw a significant rebound overnight, a rally that carried on into the Asian trading session today. This surge is mainly attributable to short covering, particularly as central bank rate hikes this week failed to drive an extended selloff in the greenback. In fact, Dollar is currently the second...
BoE and SNB Rate Hikes Add Spice, But Lack Impact
The market witnessed some ups and downs today with BoE and SNB rate decisions stirring the waters. However, these movements failed to usher in a sustainable trend, as both currencies remain shackled within yesterday's range against most major counterparts. BoE's larger than expected rate hike sparked initial momentum but...
Sterling Soft ahead of BoE, Swiss Franc Eyes SNB
Sterling is surprisingly soft this week even though markets are raising bets on a more aggressive than expected BoE rate hike, after yesterday's UK CPI data. It's clearly weighed down in selloff against the stronger Euro. Swiss Franc is comparatively steady as SNB rate decision is also awaited. Overall,...
Dollar Struggles for Momentum Despite Hawkish Fed Powell, Sterling Down after Brief Bounce
Despite Fed Chair Jerome Powell's firm indications that further monetary tightening is needed, Dollar is struggling find momentum for its near-term rebound. The greenback is yet to break through its weekly high even against the weaker Yen and is primarily bounded within the confines of yesterday's range, barring its...
Sterling Buoyed by CPI Data, Yet Moment Restrained ahead of Fed Powell
Sterling is given a boost in the wake of latest CPI data, which indicated a steady headline inflation rate and a further acceleration in core inflation. This data is likely to solidify BoE's case for a rate hike in tomorrow's meeting. However, how long this tightening phase will continue...
Dollar and Yen Rebound Gains A Little Momentum in Listless Markets
As US trading session commences, rebounds of Dollar and Yen seem to be gathering a bit more some steam. The broader financial market appears to be rather listless today, with major European indices roughly flat and US futures slightly down. There's also no unified movement in the U.S. and...
Aussie Down as RBA Minutes Raise Doubt Over July Hike
Australian Dollar is trading broadly lower today, reflecting uncertainties that emerged after release of minutes from RBA meeting earlier this month. The minutes revealed that a hold was considered at the meeting. Arguments were finely balanced even though it eventually decided to hike 25bps. These revelations have stirred market...
Euro Ignores Hawkish ECB Comments, Markets Continue Consolidations
The forex markets are holding steady in a consolidative pattern today. Notably, Euro has remained largely unaffected by continued hawkish messages emanating from top ECB officials, who have merely echoed President Christine Lagarde's suggestion that an interest rate hike is likely in July, while situation in September remains uncertain.
Euro...
Dollar and Yen Licking Wounds; BoE and SNB Hikes Highlight the Week
Dollar and Japanese Yen saw a modest bounce back in today's Asian session, making up for some of their steep losses from last week. However, the buying momentum for both currencies remains relatively weak. Due to a light economic calendar today, coupled with public holiday in the US, trading...
Global Markets Unfazed by Central Banks’ Moves, Risk-On Sentiment Prevails
Despite policy tightening from ECB and Fed's hawkish hold last week, global markets largely shrugged off the central banks' actions. Investors' sentiment remained buoyant, propelling many global markets to impressive rallies. Germany's DAX index even recorded a new all-time high.
In the forex market, Yen took a significant hit and...
Euro Extending Rally But Sterling Outperforms, Yen and Dollar Continue Decline
Euro's broad based rally continues today as supported by a chorus of hawkish comments from ECB officials. But Sterling is outperforming on anticipation that BoE will continue with tightening next week, and probably more afterwards.
Despite the strong showings by European majors, Australian Dollar still leads the pack for the...
Yen Accelerates Down Again after BoJ, Dollar Staying Weak Too
In the wake of BoJ's decision to hold its monetary policy steady, we have seen an amplified sell-off in Yen, which is not surprising given the ongoing divergence in monetary policy with other major global central banks. The breaking of key levels in some crosses suggests that we might...
Euro Soars as ECB Hikes Rates Amid Upgraded Core Inflation Forecasts
Euro is making notable gains following ECB's decision to increase interest rates by a widely anticipated 25bps. The real kicker, however, is the significant upward revision of core inflation forecasts for both the current and following years, pushing the common currency up across the board. Swiss Franc capitalized on...
Markets Skeptical Despite Fed’s Hawkish Hold; Yen Plunges; ECB Next
Fed clearly delivered a hawkish hold overnight, signaling that two more rate hikes are underway. However, market participants appear skeptical about the Fed's aggressive posture. According to Fed funds futures, markets are still projecting interest rate to peak at 5.25-5.00%, anticipating just one more 25-basis point rate hike in...
Dollar Sell-Off Resumes after PPI; Spotlight Shifts to FOMC Hold
Dollar is facing renewed selling in early US session as data reveals a further slowdown in upstream inflation via PPI. All eyes are now on the much-anticipated FOMC rate decision where a 'hold' is broadly expected. However, the possibility of an upside surprise in both inflation projections and the...