Market Overview
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,...
Sterling Falls Broadly after Weak Retail sales, Dollar Up
Sterling drops broadly today as weak UK retail sales data argues that the expected consumption drag from high inflation might have arrived already. Aussie is currently the second worse for the day, then Kiwi. On the other hand, Dollar is rebounding broadly, followed with help from risk aversion again....
Dollar Rises on Risk Aversion and Yields, Euro Rebound Faltered
Overall markets are relatively mixed. Euro's rebound attempt yesterday was rather disappointing, but it's nonetheless still the best performer for the week. Dollar staged a strong rebound overnight, with help from hawkish Fed and rising yield, but there is no clear follow through buying yet. Commodity currencies were generally...
Euro Rebounds as Some ECB Members Talk Up July Rate Hike
Euro rebounds strongly today as some ECB policymakers continued to talk up the chance of a July rate hike. Canadian Dollar is following as second strongest, continuing to be supported by strong inflation data. Dollar is not performing too badly for now, as third strongest. On the other hand,...
JPY Turning Weaker Again, CAD Staying Strong
Inflation data were the main drivers in the forex markets in the past 12 hours. New Zealand Dollar turned slightly weaker after Q1 CPI came in lower than expected, despite surging to 30-year high. On the other hand, Canadian Dollar remains supported by the stronger than expected CPI readings...
CAD Surges after CPI Beat Expectations, Dollar Corrects Lower
Canadian Dollar surges in early US session after much stronger than expected consumer inflation data, which supports more aggressive tightening by BoC. Other commodity currencies are also strong. On the other hand, Dollar is trading broadly lower as recent rally lost momentum, in particular against Yen. Euro is also...
USD/JPY Retreating on Talks of BoJ Intervention, Dollar Softens Too
Japan's benchmark 10-year JGB yield is pulled above BoJ's cap of 0.25% in Asian session today. That triggered intervention by BoJ to defend the ceiling. At the same time, USD/JPY breached 129 handle but quickly retreated, on talks that BoJ could also intervene at around 130. But judging from...
Yields Rise, Yen Falls, Euro Trying a Rebound
Yen's weakness remains the main theme today as selloff in major global treasuries continue. US 10-year yield breaches 2.9 handle while Germany 10-year yield breaches 0.94. UK 10-year Gilt yield is also heading towards 2% handle. Swiss Franc is following as second weakest together with Canadian Dollar. On the...
Yen Selloff Intensifies Again, Canadian Dollar Outperforms
Selloff in the Japan Yen continued this week and intensified in Asian session today. The move came as global benchmark treasury yields powered up, including those in the US, Germany and UK. For now, commodity currencies are the stronger ones for, followed closely by Dollar. European majors are generally...
Euro Knocked Down after ECB, Dollar Striking Back
Euro is knocked down in early US session after ECB left interest rates unchanged. The central bank leaves the option to continue the asset purchases program after June, even though it will be concluded in Q3. The announcement disappoints some Euro traders who are eager for more hawkish tone....
Euro Rebounds Ahead of ECB, Dollar Follows Yields Lower
Dollar dropped notably overnight together with pull back in benchmark treasury yield. The selling of the greenback continued in Asian session today. Even the weak Yen is recovering against Dollar, but it's still, for now, the worst performing one for the week. On the other hand, European majors are...