Weekly Report
Yen Selloff Accelerated on Strong Energy and Commodity Rallies
Yen's selloff accelerated rather steeply last week, on the back of surging commodity and energy prices. Dollar was also pressured this time, as treasury yields retreated and on late rally in stocks. Euro was not to far away, as pressured by selloff in crosses. On the other hand, commodity...
Yen Crosses Followed Yields Higher Against, Loonie Rode on Oil
Yen was once again sold off broadly last week, following late rally in treasury yields despite disappointing US job report. Resilience in overall risk appetite also kept the Japanese currency pressured. Meanwhile, Euro followed as as distant second worst on selloff in crosses, as well as Dollar. New Zealand...
Dollar Index Could Be Capped by 94.46 Fibonacci Level as Yields Rally Halts
Dollar had been the strongest for most of the week but lost it first place at the time, as treasury yields retreated. Instead, resilient risk appetite in the US, as well as firm oil price helped Canadian and Australian Dollars stole the first and second place. On the other...
Yen Dropped Broadly as Treasury Yields Jumped on Hawkish Fed
Yen's fortune reversed last week as US treasury yields accelerate up after hawkish FOMC meeting and projections. US stocks also display strong resilience and closed generally higher, reversing prior losses. Sterling, on the other hand, shrugged off hawkish BoE voting and ended as second weakest. Aussie and Kiwi were...
Dollar and Yen the Runaway Leader on Increasing Risk of Correction in Stocks
Dollar and Yen were the runaway leaders in the forex markets last week. While Fed is not quite likely to announce tapering this week, recent solid data argues that November would finally be the date. Stocks in US and Europe have been losing much upside momentum as central banks...
Dollar Rebounded as DOW’s Selloff Posts a Warning to Risk Sentiment
Dollar ended as the strongest one last week, with some held from the late selloff in US stocks. Yen was the second strongest on risk aversion while Swiss Franc was not too far away. Commodity currencies, on the other hand, ended generally lower. Traders ignored the dovish tapering of...
Dollar Weakness to Stay after Substantial Setback in Job Recovery
Dollar was under pressure most of the week and selling accelerated again after the big disappointment in employment data. The non-farm payroll report could show that job market recovery had made a "substantial setback" rather than "substantial further progress". A tapering announcement from Fed in September is basically off...
Stocks at New Record, Dollar Plummeted, Aussie Turning Around
Fed Chair Jerome Powell's speech at the Jackson Hole Symposium didn't disappoint. He did what the markets expected, affirming the openness for beginning tapering this year, without indicating the need for an imminent start. Just as Philadelphia Fed President Patrick Harker described, Powell laid out where the center of...
Sentiments Deteriorated on Delta, China and Fed Tapering
Overall market sentiments deteriorated notably last week, with concerns over the swift spread of Delta variant and return to lockdowns, Fed's tapering and slowdown in China. A softening tone from a Fed hawk on tapering gave sentiment a late lift, but it remained to bee seen if that could...
Slowing Core Inflation, Deteriorating Consumer Sentiment, and Split Fed
It's all about the consumers. After slowing core inflation and sharp deterioration in sentiment, Dollar took a steep dive towards the end of the week. Markets are suddenly less sure about a tapering announcement by Fed in September, not to mention anything concrete from Jackson Hole symposium later in...
Dollar Turned Around While Tapering Talks Heated Up Again
Dollar soared towards the end of the week as the stellar job report should give Fed much confidence to start tapering later in the year. Reactions from stock markets and yields were also positive, with DOW and S&P closing at new records while 10-year yield rebounded. Together with the...
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....