Weekly Report
Fed’s Economic Projections to Provide Guidance as Concerns on Global Slowdown Intensify
Sterling and Brexit was the center of focus during the early part of last week. The parliament vote on Brexit was postponed to at least January. UK Prime Minister Theresa May survived leadership challenge but her position is shaky with more than one-third of her MPS voted against her....
Yield Curve Inversion and Global Slowdown Hammered Stocks, Not US-China Trade Talks
It was another volatile week with multiple theme working on the markets. US-China trade truce, arrest of Chinese business executive, stock market routs, treasury yield free fall, US yield curve inversion, weak economic data and global slow down, OPEC+ production cut, UK Brexit parliament debate, Italy budget. All have...
A Look at Market Pricing on Fed Rate Path after Powell’s U-Turn
Fed Chair Jerome Powell's speech last week was sort of a turning point. Stocks staged a strong rally and helped lifted Kiwi and Aussie as the strongest ones. Nevertheless, despite being sold off steeply, Dollar has indeed reversed much the the losses and ended as the third strongest one....
Dollar Higher but Trump-Xi Meeting is a Wild Card
It's another week with multiple theme happening at the same time. Swiss Franc ended as the strongest on risk aversion. Oil's free fall could be that extra lift the the Franc. Dollar ended as the second strongest, but that's mainly due to relatively smaller problems in the US. Sterling...
Brexit, Italy and Trade War as Focuses in Holiday Shortened Week
Sterling was overwhelming the weakest one last week on Brexit political drama in the UK. It's now even uncertain for how long Prime Minister Theresa would stay in position, not to mention if there would be an agreement for orderly Brexit. Dollar followed as the second weakest after cautious...
Dollar and Yen Building Up Bullish Turnaround, Canadian Down on Oil Price Free Fall
There were some interesting turns in the financial markets last week. Global equities initially cheered after Democrats sealed a tremendous win in the US mid-term election by regaining majority in the House. But the lift quickly faded as stocks suffered quite notable setbacks towards Friday's close. It looked like...
Trade War Overshadows Fundmentals in the US, Election to Join the Party
What is a bigger driver of volatility in the markets, politics or monetary policy? Judging only from last week's development, politics got the nod, at least in the US. Investor sentiments initially sank on report that Trump was ready impose more tariffs on China, as soon as in December....
Investors Starting to Change Their Mind on Fed Hike Path after Global Stock Market Rout
Global stock market rout intensified last week with major indices ended in deep red. Over the week, Nikkei was the worst performing one and lost -5.98%. S&P 500 was the worst one in the US and dropped -3.94%. NASDAQ closed down -3.78%, DOW down -2.97%. In Europe, DAX was...
Multiple Themes in Markets, More Upside in Euro after Surviving Italy Rating Downgrade
The markets were driven by multiple themes last week. Dollar ended up broadly higher as supported by hawkish FOMC minutes and rebound in treasury yields. However, it's outshone by New Zealand and then Australian Dollar. Kiwi was boosted by stronger than expected CPI. Meanwhile, the Aussie was pulled up...
Conditions Still in Place for Further Dollar Rally Despite Trump’s Crazy Fed Attack
Global stock market crashed last week as the US finally joined the others. It should be reminded that as DOW made record high in early October, all other major markets suffered selloff already. It's stretched to blame rising US treasury yields as a factor as it's easy to see...
Dollar Surged on Treasury Yields and Bets on Fed Hikes, Except Versus Sterling
It's another week's that's full of headlines. Sterling ended as the strongest one on revised hope of a Brexit deal with the EU despite all the rhetorics. UK Prime Minister Theresa May also survived the Conservative Party conference without dance but no disaster. Dollar followed as the second strongest...
Dollar Higher on Hawkish Fed, Euro Dragged Down by Italy
Dollar rose broadly last week as markets received Fed's hawkish rate hike rather week, despite initial hesitation. However, the greenback was just the second strongest, overshadowed by Canadian Dollar. Stronger than expected GDP data from Canada solidify the case of October hike by BoC. Furthermore comments by BoC Governor...
Dollar and US Yields at Critical Levels, Fate on Fed’s Hands
Yen ended last week as the weakest one as the global markets were in full risk on mode. DOW finally made a new record high, together with S&P 500 and the strength is not limited to the US. Nikkei closed up 3.36% and is now very close to 24129.34...
Dollar Soared as Data Support Fed Hikes, Trade War to Intensify
Economic data, Fed expectations, trade war, Brexit were among the biggest themes last week. Emerging market risks seemed to have abated. Meanwhile, Italy was less of a threat to Eurozone after the government pledged not to blow up the account. Yen and Swiss Franc ended the week as the...
US Trade War Again Dominated, But Everyone Has Their Own Stories
The last week of August was unusually volatile and eventful. It's a week to remember yet it's hard to remember all the details. Almost every major currency got its own stories. Swiss Franc and Japanese Yen ended as the first and third strongest ones on risk aversions. And apparently,...
Dollar in Medium Term Correction after Plunging on Trump and Fed Powell
Yen ended the week broadly lower, as the worst performing one, on return of risk appetite. That came with S&P 500 and NASDAQ closing at record highs. Dollar ended as the second weakest one as it's firstly talked down by Trump. Secondly, markets took Fed Chair Jerome Powell's speech...
Trade War Back as Main Theme as Turkish Crisis Eased, US and China to Meet
The forex markets turned into consolidative mode last week as Dollar and Yen lost momentum. Turkish currency crisis hit a climax on Monday but worries eased after the government's measures were well taken by investors. The fear of extra sanctions by the US on Turkey caused some jitters. But...
Looking Through the Turkish Currency Crisis, Dollar is Strong Anyway
It was one of those wild week in the financial markets with a number of market moving themes. New Zealand Dollar was the worst performing one after RBNZ made itself clear that interest rate is going to stay low for longer. And the next move could either be up...
Euro as a Casualty as US-China Trade War Turns into Something Bigger
Much volatility was seen in the markets last week with a lot of themes developed. Canadian Dollar ended as the strongest one as strong data boosted chance of August BoC hike. Swiss Franc followed as the second strongest on risk aversion in Europe. Dollar was original set to perform...
CAD, JPY and USD Ended as the Strongest in a Week of Trade Talk and Surging Yields
EU-US trade talk and surge in yields in Japan and the US were the two major themes last week. But it was Canadian Dollar which quietly ended as the strongest one last week. US holding off car tariffs is definitely a positive for Canada and could clear the way...