Market Overview
Sentiment Fragile as Banking Worries Remain, Yen and Swiss Franc Soar
The fallout from the collapse of Silicon Valley Bank continues to unsettle investors. Despite measures announced on Sunday by US Treasury, FDIC and Fed to calm the markets, concerns remain. European indexes saw sharp declines led by bank stocks, while benchmark treasury yields fell.
Additionally, the market is also showing...
Sentiment Stabilized After Measures on SVB, Focus Turning Back to US CPI and ECB Hike
Mixed market sentiment prevails in the Asian session today, as Nikkei is weighed down by selloff in bank stocks, while Hong Kong's HSI sees a recovery. US futures are also seeing a strong rebound. The announcement of measures by the US government and Fed to stabilize the situation surrounding...
Silicon Valley Bank’s Collapse Outweighs Interest Rate Developments
Last week, investors were caught off guard by a series of surprises. However, the largest bank failure in the US since 2008 proved to be the most overwhelming for them. The risks of contagion from Silicon Valley Bank appeared to outweigh concerns about higher interest rates, inflation, and recession....
Mixed NFP Report Weighs on Dollar For Now, Swiss Franc Shines
Dollar experienced a significant fall during early US trading hours following a mixed non-farm payroll report. Although the headline job growth was strong, the increase in the unemployment rate and the slowdown in wage growth could give the Federal Reserve something to think about beyond March. Meanwhile, Canadian dollar...
Market Sentiment Turns Increasingly Negative ahead of NFP Report
Investor sentiment is growing increasingly negative, as the steep selloff in US stocks carried over to the Asian session. Additionally, US 10-year yield is taking a significant plunge and is threatening 3.8 handle. Traders are bracing for more bearish developments, which could be sparked by today's non-farm payroll report....
Yen Gaining Some Ground, Looking Forward to BoJ
Yen is gaining ground against its major counterparts today, as traders are probably lightening up short positions ahead of BoJ policy decision tomorrow. Sterling is also showing signs of strength. However, overall, market sentiment remains cautious, with Dollar retraces some of this week's gains. The most significant upcoming events...
Markets Quiet as Traders Hold Off Significant Moves For Now
In the Asian session, forex markets are quiet with most pairs and crosses trading within yesterday's range. Although Fed Chair Jerome Powell softened his hawkish tone slightly, noting that "no decision has been made" on the next rate move, the markets remain convinced of a 50bps rate hike later...
Dollar Takes a Breather and Shrugs Strong ADP Job Numbers
Dollar is currently taking a pause from its recent gains, with traders digesting the impact of Fed Chair Jerome Powell's previous testimony. While Powell will appear again in front of Congress today, there shouldn't be any more surprises. The market has also remained relatively unmoved by a stronger-than-expected ADP...
Hawkish Powell Shot Dollar Higher, BoC Next
In a surprising turn of events, the clear and direct hawkish message delivered by Fed Chair Jerome Powell has sent Dollar soaring and stocks tumbling overnight. The greenback maintained its solid gains during Asian session, and all eyes are now on Friday's non-farm payroll report to see what the...
Markets Eye Fed Chair Powell’s Testimony as Dollar Recovers Broadly
Dollar is gaining strength across the board as markets prepare for Fed Chair Jerome Powell's semi-annual testimony in Congress. Powell's views on the disinflationary process are expected to be a key focus, with traders also hoping for hints on the size of the upcoming rate hike and the outlook...
Australian Dollar Falls on Subtle Dovish Twist, All Eyes on Fed Chair’s Testimony
Australian dollar experienced a broad decline today following a subtle dovish shift in the statement, raising speculation of a potential earlier pause in the tightening cycle. While the general expectation of another hike in April remains unchanged, May is getting slightly more uncertain. So far, New Zealand dollar is...
Swiss Franc Surges on Strong CPI Data, Aussie Weak ahead of RBA
Swiss Franc climbed against major currencies following the release of stronger-than-expected inflation data, which is expected to bolster the case for SNB to raise interest rates by 50bps during their upcoming meeting this month. Euro also gained ground, supported by hawkish comments from ECB officials, while Dollar trailed behind.
Conversely,...
Yen Gains Traction on Mixed Market Sentiment
Mixed market sentiment led to a recovery in Yen during Asian session. Nikkei opened higher following a strong close in Wall Street on Friday. Meanwhile, stocks in Hong Kong and China were sluggish despite China's announcement of an ambitious growth target of around 5% this year. Euro and Swiss...
Dollar Struggled on Resilient Risk Sentiment Despite Expectations of Higher Interest Rates
The likelihood of higher and sustained interest rates in the US and Europe is increasing as time goes on. This expectation has led to some volatility in risk markets, but the late rally in stocks indicates that sentiment remains resilient. Despite a rally in treasury yields, Dollar ended the...
Yen and Franc Recover as Benchmark Yields Retreat
Yen and Swiss Franc recovered today following pullback in benchmark US and European yields. Dollar and Canadian are the softer ones for today while European majors are mixed. Hawkish comments from ECB officials are shrugged off by the common currency. Instead, Euro turned softer after weaker than expected PPI...
Forex Markets Quiet in Asian Session, Risk-On Sentiment Appears to Prevail
The forex markets saw limited movement in Asian session today, with most major pairs and crosses remaining within yesterday's range. While Aussie is trading slightly higher, there is no decisive momentum. For the week, Kiwi is currently the strongest, followed by Euro and then Aussie. Meanwhile, Yen is performing...
Euro Disappoints Despite Strong Inflation Data, Dollar Strengthens on Tight Labor Market
Dollar is fighting back today as jobless claims data continue to show tightness in the labor market. Following the greenback, Canadian dollar is the second strongest currency, surging in crosses. Meanwhile, Euro has failed to show a bullish reaction to stronger-than-expected consumer inflation data, disappointing traders. The common currency...
Euro Pauses Ahead of Eurozone Flash CPI Data
Euro is digesting this week's gains in Asian session, as traders turn their focus to flash CPI data from Eurozone. Market analysts believe that a 50bps hike by ECB this month is already a "done deal", as affirmed by rate-setters on several occasions. However, how far ECB will go...
Contrasting ECB/BoE Comments Drive Euro Higher While Aussie Lags Behind on Weak Data
Two major themes are vying for attention today. Euro has seen broad gains following hawkish comments from Bundesbank President Joachim Nagel. In contrast, the remarks of BoE Governor Andrew Bailey have left Sterling struggling to keep pace. As these European majors trade blows, the Swiss Franc has been pushed...
China Data Lifts Sentiment, Dollar in Retreat
Asian markets traded on a positive note as sentiment was lifted by better-than-expected economic data from China. The strong performance of Hong Kong stocks was a clear indication of the positive outlook Commodity currencies staged a remarkable rebound, as led by New Zealand Dollar. In contrast, the Yen and...