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Weekly Report

More Downside for Dollar and Aussie, Swiss Franc Outperforms

Dollar's selloff caught much attention last week, but slowed towards the end. Traders are holding their bets for now, awaiting the coming batch of July data. Indeed, Australian Dollar was the worst performer, mainly on RBA QE expectations, and partly on risk aversion in China and Hong Kong. New...

Stocks Closed at Records as Delta Worries Receded, Dollar Index Holding On to Weak Rally

It has been a very volatile week as risk markets were initial knocked down by fear of the infectious delta variant. But sentiment made an about-turn then, even with US indexes closing at record highs. Still, despite late recovery, Australian Dollar ended as the weakest one. Yen was surprisingly...

NZD Surged But Couldn’t Overcome Resilient Dollar and Yen

New Zealand Dollar ended as the strongest one last week, boosted by hawkish expectation on RBNZ. Though, the Kiwi's strength didn't provide much support to other commodity currencies, as Aussie and Loonie were indeed the worst performing ones. Yen and Dollar followed Kiwi as the next strongest, while European...

Dollar and Yen Could Turn Weaker Again as Risk Bulls Didn’t Give Up

Market bears had multiple chances to probe a bearish reversal last week, riding on talks like Fed's tapering, spread of Delta variants, and China's crackdown on its own technology stocks, as well as foreign IPOs. Yet, the optimists just refused to give up and pushed US indexes to new...

Focus Might Turns to Euro Selling While Dollar Rally Capped by Strong Risk Appetite

Dollar ended as the strongest one last week but Friday's steel fall after solid non-farm payroll job reports suggests that it's rally is already losing steam. It's still a bit early to call a bearish reversal for the greenback. Yet, strong risk-on sentiments could cap Dollar's upside attempts ahead,...

Yen and Dollar Drops on Return on Risk Appetite, Sterling Looking Technically Vulnerable

Yen and Dollar ended the week as the worst performing ones, as US stock markets came back with strong rally. Risk-on sentiments pushed commodity currencies broadly higher. Yet, Yen crosses are also held below recent highs despite the rebounds. Dollar's pull back was also relatively weak. Some more time...

Dollar Solidified Strong Near Term Rally, But Not in Long Term Reversal Yet

Dollar ended last week sharply higher as boosted by the surprisingly hawkish FOMC projections. Yen followed as second strongest on steep selloff in stocks, while Euro is a distant third. Commodity currencies were the worst performers, with Aussie leading the way, followed by New Zealand Dollar. Though, Swiss Franc...

Swiss Franc, Dollar, and Yen Jumped on Falling Global Benchmark Yields

The intra-week rebound in global benchmark treasury yields was rather short-lived. Yields in Germany, US and Japan then turned south after ECB's decision on PEPP purchases. That came even though CPI jumped to 13-year high. It remains to be seen of investors are giving a strong node to central...

Aussie Ready to Turn Around after Late Rebound?

Dollar was in a pole position to end as the strong one but was the unfortunately knocked down by solid, but disappointing non-farm payroll report. The data did nothing to alter the base position of Fed officials that, it's only time to talk about talking about tapering for now....

Yen Committed to a Direction, While Others Not… Yet

Overall, the markets in the last full trading week of May was rather mixed. New Zealand Dollar surged initially after hawkish RBNZ. But it failed to extend much gain from there, even though it still ended as the strongest. It looked like Dollar was ready to turn around after...

Swiss Franc Ended as Strongest, Aussie as Weakest, But Bitcoin Stole the Show

While Fed minutes started to prepare the markets for discussion on tapering in the coming months, Dollar wasn't give much support. It has indeed ended as one of the worst performers for the week, just next too New Zealand and Australian Dollar. On the other hand, Swiss Franc and...

Stocks Stayed in Up Trend, Yields Range Bound, Dollar Lost Downside Momentum

Market debates heated up last week with the influx of some US economic data. On the other hand, the concerns on overheating inflation was legitimate given the much stronger than expected headline and core CPI reading from the US. On the other hand, poor retail sales, and prior week's...

Dollar Tumbled Broadly, Stocks Hit Record, as Data Affirmed Fed’s Patient Approach

Dollar dropped broadly last week and ended sharply lower, as the huge non-farm payroll miss gave a strong node to Fed's patient approach. Progress could only be consider substantial as seen in realized economic data, rather than projected outlook. It's right that Fed is not even in a position...

Canadian Dollar Rally to Continue after a Strong Week, But Medium Term Strength Uncertain

Canadian Dollar ended last week as the strongest ones on a couple of factors. With some near term resistance taken out, such rally will likely continue for the near term. Swiss Franc ended as the second strongest. While Dollar was pressured for most of the week, it staged a...

Dollar’s Near Term Bearishness Persists, Other Currencies Mixed

Dollar ended as the worst performing one last week as near term bearishness persisted. Q1's rebound should have completed and the main question is whether it's ready for new lows. That is, indeed, in favor unless overall risk-off sentiments were choked off by some unexpected events. The forex markets were...

Pull Back in Treasury Yields Boosted Stocks to New Record, Dollar Set Up for More Downside

Dollar tumbled broadly again as falling treasury yield pushed US and German stocks to new record highs. Near term trend in the greenback should have reversed, but it's unsure whether it's ready for medium term down trend resumption yet. At least, EUR/USD will have to break through 1.2 handle...

Euro Reversed Course on Less Pessimistic European Outlook, Commodity Currencies Ignored Risk Rallies

Swiss Franc and Euro ended as the strongest ones last week, as investors reversed their short positions accumulated in Q1. In particular, such reversals pushed Sterling to be the worst performing one, suffering heavy pressure against both Euro and Franc. The outlook for European looked a bit less pessimistic...

Risk Sentiments Turned On Again, But Euro Likely to Stay Weak on Third Wave

After staying cautious for most of the week, risk sentiments were turned on again towards the end, bringing DOW and S&P 500 to new record highs. Aussie, Kiwi and Sterling staged a strong come back while Yen and Swiss Franc were deeply sold off. Yet, Dollar ended as the...

Sentiments Turned Cautious on Yields and Infections, But Stay Positive

US treasury yield jumped last week after Fed gave way to more yield strength. In the background, there were some concerns over resurgence of coronavirus infections in some countries like France, Brazil and India. There was also risk of slower than originally expected vaccine rollouts. Tensions between US China...

DOW, SPX and DAX Hit Records While US Yield Surged, CAD Shone

Global equities struck a strong note in ending last week, with help from fresh US stimulus and ECB's pledge to accelerate asset purchases. Yen, Dollar and Swiss Franc ended as the worst performing ones. Canadian Dollar was the strongest on the back of risk-on sentiment, while additional supported up...