Market Overview
Dollar at Risk of Resuming Medium-Term Downtrend as Fed Confirms Rate Cuts Ahead
Fed Chair Jerome Powell's highly anticipated speech at Jackson Hole didn't disappoint market participants, as he clearly signaled that the time for easing monetary policy has arrived. This declaration provided a notable boost to US stock markets on Friday, with major indexes ending the week on a positive note....
Calm Before the Speech: Markets Steady Ahead of Powell
Trading in the forex markets remains muted as investors hold their positions ahead of Fed Chair Jerome Powell's highly anticipated speech at Jackson Hole. Market participants are keenly focused on any signals regarding the Fed's plans for monetary policy easing, beyond the expected rate cut in September.
Currently, Fed fund...
Buckle Up: Markets Brace for Fed Powell’s Jackson Hole Remarks
In the calm before what could be a stormy session, forex markets remained exceptionally quiet during Asian trading. Dollar managed a slight recovery overnight, bolstered by pullback in US equities, but the upward momentum has been notably weak. Traders are now laser-focused on Fed Chair Jerome Powell’s speech at...
Sterling Surges on Strong PMI Data, BoE Likely to Hold Off on Rate Cuts Amid Resilient Growth
Sterling surged broadly today, driven by stronger-than-expected PMI data indicating that the UK economy is on track for reasonably solid growth in the third quarter. This positive economic outlook comes at a time when inflationary pressures are easing, which would typically open the door for further rate cuts by...
Dollar Continues to Slide as FOMC Minutes Confirm September Rate Cut Likely
Dollar extended its broad decline overnight following release of FOMC minutes, which confirmed that a vast majority of Fed members see a rate cut in September as appropriate. However, the market reaction was relatively muted, as this outcome has already been largely priced in by traders. The real uncertainty...
Dollar Continues to Struggle Amid Market Lull
The forex markets are experiencing a lull today, with little movement in the absence of significant economic releases during European and early US sessions. The much-discussed non-farm payroll revision and the release of FOMC minutes later today are unlikely to spark significant volatility. Instead, markets are likely to remain...
Dollar Stays Pressured, NFP Revisions and FOMC Minutes Unlikely Change Its Course
Dollar remains under broad-based selling pressure, with markets likely to keep this trend until Fed Chair Jerome Powell delivers his speech at the Jackson Hole Symposium on Friday. While today's events, including the non-farm payroll revision and the release of FOMC minutes, warrant some attention, they are unlikely to...
Canadian Dollar Slips as CPI Solidifies Case for BoC Sep Cut, Gold Marches On
Canadian Dollar has come under broad pressure in the early US session following the release of the latest inflation data, which showed a further slowdown in inflation, with headline CPI fell to a 40-month low and core measures also easing. This set of data has strengthened market’s expectation that...
Dollar Weakens Further on Risk-On Mood, Canadian CPI Takes Center Stage
Dollar continued its decline overnight as risk-on sentiment prevailed, with S&P 500 and NASDAQ notching their eighth consecutive positive session. Investor optimism has been buoyed by recent economic data suggesting that the US economy is on track for a soft landing, sidestepping a recession. However, it’s important to remember...
Dollar Remains Under Broad Pressure, Yen Maintains Strength
Dollar continues to face broad-based selling pressure as the markets move into US session. Fed Governor Christopher Waller is set to speak, but he is expected to maintain his consistent view that Fed is nearing a rate cut while the economy remains on track for soft landing. The market's...
Yen Gains Ground as Dollar Weakens, Focus on Fed Powell’s Jackson Hole Speech This Week
Yen is showing broad-based strength in today’s Asian session, particularly against the generally weakening Dollar. This move has also put pressure on the Nikkei, which turned lower as Yen gained momentum. While there’s no clear catalyst for these movements, it appears that Yen’s recent pullback may have run its...
Markets Roar Back as Recession Fears Fade, Safe Havens Crumble
The past few weeks highlighted the volatility of global financial markets and how quickly investor sentiment can shift. The sharp selloff in US markets, driven by fears of an impending recession, now appears significantly overdone in light of last week's robust rebound. Strong retail sales data was a key...
Yen and Swiss Franc Recover as Benchmark Yields Ease
As the US session gets underway, both Yen and Swiss Franc are beginning to recover, aided by the slight pullback in benchmark Treasury yields in the US and Europe. This recovery comes after a tough week for the two safe-haven currencies, which have been the worst performers amid broad...
Risk-On Sentiment Sweeps Markets, Weighs on Safe Haven Currencies
Yen, Swiss Franc, and to a lesser extent, Dollar are trailing at the bottom of the weekly currency performance chart. Strong risk-on sentiment has swept through the US markets, and the positive momentum continued in Asia. This shift in sentiment was ignited by better-than-expected US retail sales data overnight,...
Retail Sales Strength Sparks US Market Surge, Recession Fears Subside
The US markets reacted positively today to stronger-than-expected retail sales data, which posted its fastest growth in a year and a half. Additionally, better-than-expected jobless claims numbers helped alleviate concerns about weaknesses in the employment market. The robust rally in US futures, along with rising yields and a stronger...
Aussie Rises on Strong Job Growth, But Gains Limited
Australian Dollar strengthened during Asian session today, buoyed by stronger-than-expected employment growth data. This positive surprise offered some support to Aussie, though gains were limited, failing to push the currency above yesterday's high. The labor market report, which showed a modest increase in unemployment rate, suggests some loosening in...
Muted Reaction to US CPI, Euro Leads While Kiwi Struggles
The market's initial reaction to US CPI data has been relatively subdued. While both headline and core CPI readings slowed in July, they remain elevated. This ongoing disinflation is a positive sign for the Fed, but the pace is not rapid enough to justify a larger rate cut in...
NZD Tanks After RBNZ Cut, UK and US CPI for Next Volatility Wave
New Zealand Dollar plunged today after RBNZ unexpectedly cut interest rates by 25bps, marking the first reduction in this easing cycle. This move came much earlier than the market's anticipation of a rate cut in October or November. The selloff gained further momentum after RBNZ Governor Adrian Orr disclosed...
Dollar Softens after PPI, Kiwi Strong Ahead of RBNZ
Dollar weakens broadly in early US session after July's PPI came in lower than expected, signaling easing in inflationary pressures. This development was well-received by investors, with stock futures ticking up slightly and 10-year Treasury yield dipping in response. While the softer PPI readings provide some relief to those...
Pound Strengthens on UK Jobs Data, But Eyes Further Economic Releases
Sterling is making notable gains after UK employment data revealed an unexpected drop in the unemployment rate for June. Additionally, July's figures showed continued growth in payrolled employment and a rebound in wage growth. This robust set of data strengthens the position of the hawks within BoE's MPC, who...