Sat, Oct 23, 2021 @ 16:46 GMT
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Weekly Report

Dollar Relatively Resilient in Strong Risk-on Market, Setting the Base for a Rebound?

Global investors were all in risk seeking mode in the first full week of 2021. That came despite all the headlines of surges in coronavirus infection and death, return to strict lockdowns, chaos in Washington and Joe Biden's certification as US President-Elect. Dollar didn't perform too well but there...

Dollar Resumed Down Trend, Pound Still Awaiting Brexit Trade Talks

Dollar's broad based down trend resumption was a major theme last week. Though, Canadian Dollar was the worst performing one, as it digested recent oil price supported rally. Overall risk appetite, with NASDAQ extending record run, kept Yen and Swiss Franc soft too. As Brexit trade negotiations went into an...

Sterling in Free Fall as No-Deal Brexit Could Become Reality… Soon

Sterling was in free fall last week after both UK and EU admitted that a no-deal Brexit is more likely than not. Negotiation deadline was ended to end of Sunday. Euro and Dollar, followed as the next weakest and focus turned to rally in commodity currencies. In particular, Australian...

Dollar Index Might Find Temporary Support at 90 after Down Trend Resumption

Selloff in the Dollar was the main theme in the currency markets last week. With the arrival of coronavirus vaccines, the global economy looks set to return to normal next year, despite some cautious comments from central bankers. Yen might look worst than Dollar but it is indeed still...

Nikkei Shone in Global Stock Rally, Sterling Tumbled on Brexit Uncertainty

Vaccine optimism pushed global stocks higher last week, with Nikkei completing the most impressive rally. Commodity currencies ended generally higher as led by New Zealand Dollar. Yen and Dollar ended as the worst performing ones. Though, no key levels were taken out, except in NZD/USD and NZD/JPY. Dollar index...

Markets Turned into Consolidation, With Conflicting Signals

Markets, including stocks, gold and currencies, were generally bounded in consolidative mode last week. News regarding coronavirus vaccines failed to give sentiments another boost. Instead, investors are waiting for fresh inspirations. Dollar ended as the worst performing one, but stayed inside prior week's range, except versus Kiwi. Euro, and...

Vaccine News Solidify Risk On Mode; But Yen Selling Lacks Conviction

News of coronavirus vaccine readiness was the biggest market mover last week, solidifying near term risk-on sentiments. Subsequent price actions in major global indices were clearly corrective looking, setting the stage for further rally. Swiss Franc and Yen ended as the worst performing ones, followed by Canadian Dollar, which...

Stocks Ready for Upside Breakout, But Yen Crosses Seem Not Agreeing

Politics aside, stock investors were the biggest winners of US presidential elections, while Dollar holders were the losers. The greenback ended as the worst performing one, followed by Yen by a wide margin. Australian Dollar shrugged of RBA easing and ended as the strongest, leading other commodity currencies. European...

Key Levels to Watch as US Presidential Election Looms

Global equities tumbled notably last week, partly as coronavirus spread was hitting new record highs. Also of the same importance, US investor had lightened up their positions in preparation for the Presidential elections. Yen and Dollar surged broadly to end as the strongest one. Euro was the worst performing,...

Euro Strong as Funds Flow Out of American Assets, But Technical Pictures Mixed

Funds were flowing out of US assets last week as Dollar ended as the worst performing major currency. Treasury yields surged as bonds tumbled while stocks gyrated lower. But the movements were not decisive enough yet as the greenback still holds above recent lows against major currencies like Euro...

Chaotic Markets With Many Themes Going On

It's a rather chaotic week with many themes developing. The first October surprise of US President Donald Trump's coronavirus infects seemed to have fade as he's back in election campaign. Just as challenger Joe Biden appeared to be widening lead, according to mainstream polls, another October surprise surfaced with...

Dollar Tumbled as Investors Hungry for Risks, Down Trend Resuming?

Yen and Dollar ended the week as overwhelmingly the worst performing ones. Despite all the jitters regarding US President Donald Trump's coronavirus infections, stimulus talks stalemate, major stock indices ended the week strongly higher. Yen is additionally pressured by strong rally in treasury yields too. On the other hand, Canadian...

More Risk Aversion Likely after First October Surprise

Investors could have been anticipating an October surprise. But none could have expected it to come that early, with US President Donald Trump's coronavirus infections. The world has been in historically high level of uncertainty ever since the virus outbreak in Wuhan of China half a year ago. And...

More Evidence Still Needed for Dollar’s Strength and Aussie’s Weakness

Dollar and Yen ended as the strongest ones last week as global stock markets tumble. There were concerns over resurgence in coronavirus infections in Europe, with worries over a return to lockdown. Though, the US markets ended not too badly after Friday's rebound. It's still not clear if the...

Yen Surged Again, Dollar Rally Failed, Sterling Pared Losses

Yen ended up broadly as the strongest one last week, extending this month's rebound. Domestically, political uncertainty was cleared with Yoshihide Suga took up the job of Prime Minister, ensuring continuity of Abenomics. Externally, geopolitical risks at the South China Sea and Taiwan Strait heightened while US-China relations deteriorated...

No-Deal Brexit Could Push Sterling Back into Medium Term Down Trend

Sterling's selloff was the most decisive move last week. UK-EU negotiations seemed heading to a dead-end as UK published the so-called internal market bill, which violates part of the Brexit Withdrawal Agreement. WTO style of trade relationship after Brexit looks more likely than ever. Technical developments in Sterling pairs...

Dollar Down Trend, Stocks Up Trend Still Intact after Roller-Coaster Ride

Markets experienced a roller-coaster ride in the first week of September. S&P 500 and NASDAQ extended record runs and it looked like DOW was on the way for a catch-up. Then technology stocks led a steep selloff towards the end of the week and pulled all indices sharply lower....

Dollar Dived on New Fed Strategy, Aussie Shone ahead of a Key Week

Dollar tumbled sharply, and broadly last week as markets perceive Fed's adoption of average inflation targeting as a dovish move. Nevertheless, selloff were mainly against commodity currencies and, to a lesser extent, Sterling. The greenback ended in range against Euro, Swiss Franc and Gold. Even Gold just gyrated inside...

Euro Tumbled as Optimistic Investors Reassess Outlook, Turning Around?

Euro ended as the worst performing one last week as investors could have started to reassess the economic outlook. As ECB meeting accounts pointed out, recent positive market developments were "not fully backed by economic data". Indeed, they might be based on "overly optimistic expectations" about the Next Generation...

Yields Surged, Gold Corrected, But Dollar Got No Lift

It was a rather mixed week where there were conditions for a Dollar rebound, with surging treasury yield and correction in Gold. Yet, no apparent rally was seen. Yen was sold off generally, partly on coronavirus and recovery optimism. But the Swiss Franc was firm together with Euro. Strong rally...