Market Overview
European Majors Gain on Solid Data, Yen Consolidates ahead of BoJ
European majors are trading generally higher today, with help from strong improvement in Germany economic sentiment as well as solid UK job data. Commodity currencies are turning softer, with Canadian Dollar shrugging off CPI data. Dollar is mixed despite sharp decline in New York State manufacturing data. Yen is...
Markets in Range and Focus Turns to UK Employment and Canada Inflation
Markets are generally stuck in tight range in Asian session today, with better than expected data from China providing no inspirations. Dollar is staying in consolidations in tight range, with no sign of a sustainably rebound yet. Similarly, Yen is in retreat in rather shallow manner. Volatility might start...
Dollar Recovering Slightly as Markets Turned Mixed, Treading Water
The forex markets turned mixed with an ultra-light economic calendar today, while the US is on holiday. Dollar is recovering slightly but it's outperformed by Swiss Franc and Canadian. Yen is paring some of recent gains, as eyes turn to Wednesday's BoJ policy decision. Sterling and Aussie are turning...
Yen Firms Up after Strong PPI, Dollar Staying Pressured
Yen firms up against Dollar in Asian session today, after PPI report adds more bullets for BoJ to start tweaking monetary policy. Investors in Japan are also feeling the risk of stimulus exit, and push Nikkei down more than -1%. Nevertheless, Yen is overall mixed for now. Aussie and...
USD/JPY Dived on Fed and BoJ Expectations, More Downside But 120 Will Be a Bit Stretched
Dollar was sold off broadly last week as a 25bps rate hike by Fed in February is now pretty much a done deal, after CPI data. On the other hand, Yen staged a strong rally on speculations that BoJ is now much closer to exit of ultra-loose monetary policy....
Dollar Trying to Recover, Except Versus Yen
Yen's rally continues today on talks that BoJ could tweak the yield curve control again next week. It's also supported by extended decline in US and European benchmark treasury yields. Meanwhile, Dollar is trying to fight back as US futures are taking dive, reversing some of yesterday's post-CPI gains....
Yen Rallies on Narrowing Yield gaps, Dollar Recovering Slightly Elsewhere
While Dollar was sold off overnight, the decline was less severe than originally expected. Indeed, the greenback is currently just the second worst performer for the week, following Swiss Franc. The rally in commodity currencies was also less than convincing with Kiwi and Loonie as third and fourth weakest....
Dollar Dives as Cooling Inflation Gives Nod to Slower Fed Tightening
Dollar declines sharply after US data showed consumer inflation slowed notably in December as expected. The development reinforces expectation for Fed to further slowdown tightening in February with a 25bps hike. Yen is so far the strongest one for the day, as lifted by decline in US and European...
Dollar Down But Not Out Yet as CPI Awaited
At this point so far, Euro is the strongest one for the week, while Swiss Franc is the weakest, thanks to the upside breakout and rally yesterday. Dollar is more on the soft side too but there is still no clear follow through selling after the decline on Monday....
EUR/CHF Upside Breakout in Otherwise Dull Markets
EUR/CHF is providing some excitement in otherwise dull markets today. The cross finally breaks out from the sideway pattern started back in October. Some buying is also seen in Euro against Sterling and Aussie, but it's staying in very tight range against the greenback. Indeed, Euro and Dollar are...
Aussie Regains Ground after CPI, Dollar Treads Water
Australian Dollar regains some ground in Asian session today, following stronger than expected monthly CPI data. In the background, market sentiment also stabilizes after Fed Chair Jerome Powell refrained from commenting on monetary policy or inflation. New Zealand Dollar is currently the second strongest, followed by Swiss Franc. Yen...
Dollar Recovers as Risk Sentiment Turns on Hawkish Fed Comments
Dollar recovers broadly today as risk sentiment turns negative again. Hawkish comments from Fed officials this week reminded people that even though a smaller hike is possible for February, interest rates are going to stay high for "a long time". Euro is currently the second strongest for the day,...
Dollar Staying Weak, But Awaits Committed Selling
Markets turned steady in Asian session as risk-on moves take a breather for now. Dollar remains the worst performer but there is no committed follow through selling so far, after breaking near term support against Euro and Swiss Franc. Commodity currencies also lose some momentum and are overtaken by...
Dollar Selloff Continues, Euro Ready for Upside Breakout
Selloff in Dollar remains the main theme today, but Yen is also sharing some burden. US 10-year yield is falling below 3.6 handle again, giving the greenback some additional pressure. Swiss Franc breaks through recent resistance against Dollar already, with help from cross buying. But Euro might also follow...
Aussie Powers Up on Risk-On Sentiment and China Reopening
Australian Dollar rises broadly today as risk-on sentiment carried forward to Asian session. Additionally, the Aussie is lifted by reopening of China, together with Yuan and Hong Kong stocks. Kiwi and Sterling are currently the next strongest. Dollar plunges broadly as a result too, with expectations that Fed to...
Dollar Selling Re-emerged on Surprisingly Positive Risk Sentiment
Risk sentiment was surprisingly positive in the first week of the year. The stock markets ended on a high note after slowing wage growth in the US and faster cooling in Eurozone inflation. After some flip-flopping, Dollar selling re-emerged in the last session. It might take a week or...
Dollar Struggles to Rise on Solid Job Data
While the US delivers a set of solid non-farm payroll data, Dollar struggles to ride on it to extend the near term rebound. On the other hand, the report is being cheered by stocks investors, with futures shooting higher. Thus, risk-on sentiment is capping the greenback's rally attempt. Softer...
Dollar Looking Forward to NFP, Markets Cautious
The forex markets are largely in tight range in Asian session today. Dollar is currently the strongest one for the week, after the rally attempt overnight. But traders are still holding their bets ahead of today's non-farm payroll data. For now, Canadian Dollar is the second best, followed by...
Dollar Lifted by Solid ADP Job, But Still Stuck in Range
Dollar rises broadly in early US session as lifted by stronger than expected ADP private job data. Meanwhile, stock futures turn south, apparently triggered by affirmation of continuous tightening by Fed. Yet, traders would still hold the larger bets until tomorrow's non-farm payrolls data. For now, Swiss Franc is...
Dollar Shrugs FOMC Minutes, Yen Continues to Reverse
Overall, the movements in the markets remain indecisive. Yen is staying soft after reversing all of earlier gains in the week, but holds above near term support levels. Dollar is stuck in familiar range against European majors and commodity currencies. The hawkish FOMC minutes provided no inspiration to the...