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Market Overview

Dollar Stands Tall, Euro and Sterling Down on Recession Worries

Dollar clinched the title of the week's best performing currency, even though there was just muted impact from Fed Chair Jerome Powell's remarks at Jackson Hole. While Powell's renewed commitment to combating inflation prompted traders to elevate their expectations for another rate hike within the year, broader market reactions,...

Market Treads Cautiously Ahead of Powell and Lagarde’s Speeches

As the financial world gears up for the much-anticipated remarks from Fed Chair Jerome Powell and ECB President Christine Lagarde, market participants are treading with caution. Dollar has started to retreat, shedding some of its recent impressive gains. Simultaneously, Euro grapples to find solid ground elsewhere amidst a mixed...

Dollar Soars Amidst Market Jitters; Fed Powell and ECB Lagarde Remarks to Shape Market Outlook

A shift in market sentiment rattled investors as the optimism spurred by Nvidia was short-lived. DOW experienced its most severe daily slump since March overnight, while S&P 500 and NASDAQ posted their largest one-day drops since early August. This change in market dynamics played into the hands of Dollar,...

Dollar Resurgence Amid Rising Treasury Yields

Dollar exhibits renewed vigor in the early US trading hours, marking broad-based gains. While today's data showcased robust initial jobless claims and a mixed bag for durable goods orders, these don't seem to be the primary catalysts fueling the Dollar's ascent. A more plausible driver is the resurgence of...

Forex Markets Await Jackson Hole Cues; Dollar’s Position Remains Uncertain

The foreign exchange are mostly stable today, with major currency pairs and crosses staying confined within the boundaries set yesterday. Both Sterling and Euro have had a lackluster week, emerging as the weakest performers. US Dollar, while subdued, still fares better, positioned ahead of Canadian Dollar as the third...

PMI Woes Shoot Euro and Sterling Down; Yen and Dollar Seize the Opportunity

Sterling and Euro faced a sharp drop today after alarming PMI readings unveiled an unanticipated rapid decline in the service sectors of both the UK and Eurozone. The days of service-driven economic growth seem to be in the rearview mirror, with signs indicating probable contractions in the third quarter...

Euro Under Pressure Ahead of PMIs from EZ, UK and US

Euro faces headwinds this week, emerging as one of the more subdued performers, with all eyes set on today's Eurozone PMI data. Its trajectory, when compared to Yen and Aussie, remains uncertain, as both showed minimal response to their respective PMI releases. Conversely, Dollar's movement, in anticipation of the...

Euro Lags in Muted Markets; Eyes on Upcoming PMI Data

Euro is currently the weakest major currency in very quiet markets today, with little of note from the economic calendar. Meanwhile, other European majors are soft too, with Sterling just performing slightly better than Swiss Franc. Meanwhile, the rebound in metal prices is helping Aussie recover, while Kiwi is...

Yen Selloff Slows, But Remains Vulnerable

Yen's selloff experienced a mild respite during the Asian session, bolstered by a spike in 10-year JGB yield that touched its apex since 2014. However, given the widening yield disparities with both US and European counterparts, the outlook for Yen remains bearish, at least in the foreseeable future. Interestingly,...

Yen Faces Pressure Again Amid Rising Benchmark Yields in Europe and US

Japanese Yen is feeling the heat once again, buckling under the surge in major European and US benchmark yields. Notably, yield on Japan's 10-year JGB did jump, closing 0.655 today. However, this level has acted as a formidable ceiling for a while, even in the wake of BoJ's recent...

Markets Treading Cautiously, as PMIs and Jackson Hole Awaited

As a fresh week unfolds, global markets seem to tread cautiously, keeping a close watch on the recent undertakings in Asian economies. PBoC's modest rate cut decision has catalyzed a minor pullback in stocks across China and Hong Kong. In contrast, Japan's Nikkei shows modest gains, reflecting a divergence...

A Stormy Week With Selloff in Bonds, Stocks, Bitcoin and China

Last week, the financial world navigated a storm of uncertainty and volatility. From skyrocketing treasury yields to the extended declines in equities, from the downward spiral of Chinese stock market to the tumultuous Yuan exchange rate, and not forgetting the unexpected nosedive in Bitcoin. At the same time the...

Dollar Finally Capitalizes on Intensifying Risk Aversion?

As the trading week draws to a close, Dollar appears to be finally capitalizing on heightened risk aversion, extending its recent surge. Major European stock indexes are painting a gloomy picture, while US futures points to negative opens. British Pound, once the darling of the markets, has started to...

Dollar Struggling to Gain Momentum Despite Global Market Shakeup

In the face of mounting tumult across stocks, bonds, and the crypto realm, the currency market projects an island of relative calm. Despite the extended rout in equities and treasuries and the dramatic tumble in Bitcoin, the forex market has responded with comparative restraint. A discernible dip in commodity...

Dollar Retreats, Sterling Continues Dominance, Bitcoin Down

Dollar relinquished its early gains, entering US session as the day's softest currency. Even as US benchmark 10-year yields skyrocketed to touch 4.3% mark, they found themselves lagging behind their German and UK counterparts. On the flip side, Australian Dollar is mustering a recovery, buoyed in part by China's...

Australian Dollar Dives After Poor Employment Data and Risk Off Sentiment

Australian Dollar faced a discernible decline during today's Asian trading session, continuing its broad-based selloff throughout the week. The catalyst behind Aussie's downturn can be traced back to the underwhelming employment figures released from Australia. Additionally, a prevailing risk-averse sentiment, inherited from US markets overnight, further burdened the risk-sensitive...

Dollar Gears Up as Eyes Turn to FOMC Minutes; Sterling Staying Firm

In early US trading sessions, Dollar is showing signs of regaining momentum as market participants eagerly anticipate the release of FOMC minutes from July 25-26 meeting, where a 25bps hike was delivered. Recent comments from Fed officials suggest an increasing divergence in views regarding the need for additional monetary...

Sterling a Touch Higher after UK CPI, Dollar Stays Resilient

In the wake of UK CPI data, Sterling slightly higher, but lacks clear buying momentum. As BoE had anticipated, headline inflation demonstrated pronounced deceleration. Concurrently, the evident surge in services inflation dovetails seamlessly with the week's unprecedented data on wage growth. Given these dynamics, BoE is primed for another...

Sterling Jumps on Record Wages Growth, Gold Approaches Key Support

European major currencies are making a notable stride today, with Sterling at the forefront. The Pound ascent is attributed to the historic high recorded in UK regular wage growth. This surge adds further weight to BoE dilemma, pushing it to seriously consider additional monetary tightening in the upcoming month. While...

Dollar Rally Wavers, Sentiment Steady as China Rate Cut Offsets Discouraging Data

Dollar's spirited rally attempt faced a swift halt as major US stock indices recorded gains, positively influencing broader market sentiment. Following that, Asian markets are poised, with China's unexpected rate cut effectively counterbalancing the dampening effects of discouraging economic data. As a result, commodity currencies, including Australian Dollar, saw...