Market Overview
Sterling Rises after GDP, Dollar Turning Soft Again
Sterling rises broadly today after better than expected GDP data, even though upside momentum is weak so far. Dollar is paring some of the post-CPI gains as over sentiment, while weak, seems to be stabilizing. As for the week, Yen is the worst performing one, followed by Euro and...
Risk-off Sentiment Dominates as Expectation of 50bps Fed Hike Intensified
Much volatility was seen in the markets overnight, but as dusts settled, risk-off sentiment dominated. Fed funds futures are now pricing in 94.7% chance of a 50bps rate hike by Fed after the strong CPI reading, comparing to just 33.7% a week ago. Dollar is trading generally higher in...
Dollar and Yields Up, Stocks Down after Strong US CPI
Dollar rebounds broadly in early US session after stronger than expected CPI data. Treasury yields also surged with 10-year yield marching higher. 2% level for 10-year yield is getting closer. Stocks on the other hand, take some beating on concerns of a more aggressive Fed. For now, selloff is...
Dollar Soft with Yen as US CPI Awaited
While US stocks staged a strong rally overnight, Asian markets turned mixed. Investors are holding their bets ahead of US CPI data. Australian Dollar remains the strongest one for the week, followed by Kiwi. Loonie also regained some ground with help from the stabilization in oil prices. On the...
Dollar Broadly Lower on Positive Risk Sentiment
Dollar trades broadly lower again today, as pressured by generally positive risk-sentiment. Yen is following as the next weakest. Canadian Dollar is also soft as WTI crude oil is struggling below 90 handle. On the other hand, Australian Dollar and New Zealand Dollar are trading broadly higher. Sterling and...
Aussie Rises on Risk-on Sentiment, Dollar Soft Despite Rising Yields
Australian Dollar rises further again with help from risk-on sentiments in the US and Asia. On the other hand, Dollar turns soft despite rising treasury yields. Canadian Dollar is dragged down slightly by oil prices. Other parts of the forex markets are mixed. Euro is still in consolidation against,...
Canadian Dollar Dips With Oil Prices, Dollar Mildly Firmer
Canadian Dollar is currently the weakest one for today, following the pull back in oil prices. Japanese Yen is following as European and US yields are apparently trying to outpace benchmark JGB yield again. On the other hand, Aussie is trading slightly firmer, together with Kiwi and Dollar. Euro...
Dollar Strengthens Mildly in Quiet Trading, Gold Recovers Further
Dollar strengthens mildly in Asia today but overall markets have been quiet this week so far. Euro continues to consolidate last week's sharp gain, ahead of a key near term resistance against the greenback. Commodity currencies are the slightly stronger ones. Major benchmark global treasury yields continue to rally...
Euro Extending Consolidations Despite Improving Investor Confidence, Dollar also Soft
Australian Dollar is leading commodity currencies higher in relatively quiet trading today. Swiss Franc is also firm, but mainly because Euro is consolidation gains. Sterling is currently the weakest one, followed by Euro and then Dollar, while Yen is mixed. In other markets, major European indexes are trading water...
Euro Retreats ahead of Key Resistance, US CPI the Biggest Event for the Week
The markets are steady in Asia in a quiet start to the week. Euro is softening slightly, paring some of last week's gain. Aussie and Kiwi also turn weaker on mild risk aversion. On the other hand, Dollar and Canadian are both regaining some grounds. It's a relatively light...
Euro Flexes Muscle after ECB, Staging Broad-Based Bullish Reversal?
It was a week a surprises. While BoE delivered that a 25bps hike, four of the nine MPC members have indeed voted for a 50bps raise. However, there was no follow through buying as BoE indicated only "modest" tightening would follow. Also, the event was overshadowed by ECB's unexpected...
Dollar Fights Back on Strong NFP and Wage Growth
Dollar is rebounding strongly in early US session following much better than expected job and wage growth. The greenback is apparently turning the tide against all major currencies, except Euro. The common currency is still the runaway winner for the week, as boosted by surprised hawkish turn in ECB....
Euro Power Continues, Dollar Staying Pressured ahead of NFP
Euro remains in the spotlight in Asian session, as post-ECB rally is extending. Dollar is particularly in pressure as markets are awaiting disappointment from non-farm payroll job data. Yen is currently the second weakest for the week, following the greenback. Aussie is the second strongest, next to Euro, followed...
ECB Winning the Race of Hawkish Surprises, Euro Overpowers Sterling
It looks like ECB is beating BoE in the race of hawkish surprise in a jam-packed day. Sterling spiked higher after four of the nine MPC members have indeed voted for a larger hike of 50bps. However, there was no clear follow through buying as BoE indicated there will...
Markets Steady ahead of ECB and BoE, Dollar Staying Weak
The forex markets are generally steady in Asian session, as traders await ECB and BoE rate decisions. Dollar is staying as the weakest for the week one after yesterday's selloff, followed by Yen. Aussie and Euro are the strongest ones. There is upside prospect for Euro even if ECB...
Euro Jumps on Record Inflation, Dollar Tumbles on Poor ADP Job Data
Dollar tumbles broadly today as markets are staying in risk-on mode. Additional selling pressure is seen on the greenback after shocking poor ADP job data. On the other hand, Euro is lifted by another record reading in consumer inflation data. Sterling is following Euro as markets await tomorrow's BoE...
Sentiment Turns Risk-On as Fed Talks Down 50bps Hike, Dollar Staying Soft
Overall market sentiment turned more positive after Fed officials jumped out to talk down the prospect of a 50bps hike in March. Australia Dollar is trading broadly higher, following risk-on sentiment, and shrugs off cautious comments from RBA Governor. Euro is following as the second strongest for now but...
Dollar Drops Broadly on Positive Market Sentiment, Reversing?
Dollar drops broadly today in rather mixed markets. Firmer risk sentiment might be a factor. Yet, Swiss Franc is currently the strongest, followed by Kiwi and then Aussie. Yen is also just steadily mixed. On the other hand, Canadian Dollar is also weak, without much support from stronger than...
Aussie Dips Mildly on Cautious RBA, Dollar Paring Gains
Australian Dollar dips broadly after RBA sounds surprisingly cautious regarding raising interest rates. But loss is so far very limited, as supported by improving market sentiment following strong rebound in US stocks overnight. Dollar is the second weakest, continuing to pare recent gains while Yen is also heading lower....
Euro Rebounds as German Benchmark Yield Turns Positive, Aussie Firmer ahead of RBA
Euro rebounds notably today as Germany 10-year yield turns positive. Nevertheless, Australian Dollar is even stronger as markets await RBA rate decision. On the other hand, Dollar and Yen are paring some recent gains. Sterling and Canadian Dollar are mixed.
Technically, EUR/GBP appears to be drawing support from 0.8304. Rebound...