Market Overview
Sterling Collapses after Dovish BoE Hike, Dollar Regains Ground
Sterling drops sharply today even after BoE raised interest rate as expected. The trigger was the warning that of recession as high inflation hurts real incomes of household and profits of businesses. Aussie and Kiwi are also trading lower as yesterday's risk-on rally fades. Dollar, on the other hand,...
Dollar Down, Stocks Surged after Powell Surprise, BoE Next
Dollar dropped notably overnight after Fed Chair Jerome Powell surprised the markets by ruling out a 75bps rate hike. The comment also boosted US stocks sharply higher. Risk-on sentiment helped commodity currencies rebound. But European majors are lagging behind. Yen is so far mixed, with slight retreat in US...
Swiss Franc Dips, Dollar Range Bound as Fed Hike Awaited
Major forex pairs are generally stuck inside yesterday's range as markets await FOMC rate decision. Swiss Franc is the exception, though, as the selloff against Euro spreads to other Franc pairs. Dollar and Canadian are the next weaker ones. On the other hand, Aussie and Kiwi are the firmer...
Markets in Tight Range ahead of Fed Hike, Dollar Firm
Overall, the markets are pretty quiet as focuses turns to Fed's rate hike and guidance today. Dollar is consolidating in tight range, preparing for the next move. For now, Aussie and Loonie are the stronger ones for the week, but they only have a slim advantage over the greenback....
Dollar Softer Slightly, European Majors Trying a Rebound
Dollar is turning softer entering into US session, as traders might start to lighten up position ahead tomorrow's FOMC rate decision. Commodity currencies are also soft, except Aussie which is supported by RBA's hawkish rate hike. Yet, there is no clear follow through buying in Aussie. European majors, on...
Aussie Jumps after RBA Rate Hike, But Lacks Follow Through Buying
Australian Dollar rebounds broadly after the larger than expected rate hike by RBA, and takes up New Zealand Dollar too. But there is no clear follow through buying yet. Swiss Franc is currently the weakest one for the day, followed by Dollar and Yen. Apparently, overall development suggests steady...
Dollar Staying Firm in Quiet Markets, Canadian Dollar Lower With Oil Price
Dollar remains the firmer one today, in quiet markets, as traders are awaiting Fed's rate hike, and forward guidance later in the week. Yen's trading tone is so far positive, as risk markets lack buyers. Commodity currencies are weak together with Euro and Sterling. Aussie is the relatively steadier...
A Busy Week With RBA, Fed, BoE, and NFP, Dollar Starts Firm
Dollar rises broadly again today but Asian session is a bit quiet with China and Hong Kong on holiday. Selling mainly concentrates on Aussie and Kiwi, with both breaking through last week's lows. But Euro and Yen are not too far away. Sterling and Canadian are mixed for now....
Dollar Index Hit Two-Decade High as Focus Turns to Fed Hike
Dollar ended up as the strongest one last week, having the best week since 2015 and with Dollar index hitting a two-decade high. Though, the rally somewhat slowed towards the end of the week. It could be a result of month end flow or traders' cautiousness ahead of Fed....
Dollar Consolidates Gain after Strong PCE Inflation Data
Lots of important economic data are released today but they're largely ignored. Inflation data from the US and Eurozone are strong. Canada's monthly GDP growth was well above expectation while Eurozone GDP growth turned weaker in Q1. But reactions to them are mild. While the greenback is paring some...
Dollar Paring Gains, Canadian Turning Stronger ahead of GDP
Dollar is paring some gains today but remains the strongest one for the week. Canadian Dollar is currently the second best. Euro is trying to recover but remains the second worst, just next to Sterling. Yen is trying to recover against Dollar too, but stays weak against European majors....
Dollar Staying Firm Despite Unexpected US GDP Contraction
Dollar's broad based rally continues into US session. The unexpected contraction of Q1 US GDP might give the greenback a little jitter. But it's unlikely to alter the up trend for now. As for today, Canadian Dollar is the second strongest Yen is the worst performing one on post-BoJ...
Yen Selloff Resumes as BoJ Maintains Dovish Bias, Gold Extending Decline
Yen falls broadly in Asian session today after BoJ stands pat and even maintains a dovish bias. 10-year JGB yield also tumbles after BoJ reiterates the pledged to defend the cap. Dollar, on the other hand, rises broadly, and it's trading as the strongest one for the week so...
Euro Decline Accelerates Again, Dollar Looking Strong
Selloff in Euro accelerates again today, as Germany benchmark 10-year yield tumbles back below 0.8 handle. Swiss Franc and Sterling are also the weaker ones. Australian Dollar is supported by stronger than expected CPI reading, but looks rather vulnerable into US session. Indeed the greenback is probably ready to...
Aussie Stabilizing after Strong CPI, Yen and Dollar Strong on Risk Aversion
Yen and Dollar are both staying in the driving seat as risk-off sentiment continues to dominate the markets. Sterling remains the worst performing one, followed by Euro, with selling focus mainly on them. Australian Dollar recovers mildly as stronger than expected CPI data prompted some speculations that RBA could...
Selling Focus Turns to EUR and GBP; USD, JPY and CHF Firm
Overall risk sentiment is mixed today with mild recovery in European stocks, even though US futures still point to lower open. Major global benchmark treasury yields are turning softer. Dollar, Swiss Franc and Yen are staying as the strongest ones. Selling focus, however, has turned to Sterling in Euro....
Euro Staying Vulnerable as Market Sentiment Stabilized
Markets sentiment stabilized a bit in Asia, following the recovery in US stocks overnight. Commodity currencies are paring some losses while Dollar and Yen are retreating. But so far, the Japanese currency is still the strongest one for the week, backed by overall risk-off sentiment, while Dollar is also...
Risk Aversion Continues on China Concern, Dollar and Yen Strong
Yen, Swiss Franc, and Dollar are trading higher today on overall risk off sentiment. Selloff was particularly steep in Chinese stock markets on risks of more lockdowns in major cities, in particular Beijing. While European markets and US futures are in red, downside is relatively limited for now. Australian...
Dollar Rally Continues on Risk-Off Sentiment, Euro to Break Support?
Risk aversion dominates the markets in Asia with concerns on more tough lockdowns in China, including the capital city of Beijing. Dollar jumps broadly higher, with Yen and Swiss Franc as distant second and third. Aussie and Kiwi are extending last week's decline, trading as the worst ones for...
Dollar Powered Up, Fed to Hike 50bps in May and 75bps in Jun?
Speculations on aggressive Fed tightening intensified sharply last week after a chorus of hawkish comments from policy markets. Markets are indeed pricing in near 70% chance of federal funds rate at 1.50-1.75% by the end of first half, i.e., 125bps above current level. Stocks tumbled sharply towards the end,...