Weekly Report
Genuine Confidence on the Economy or Simply a Mirage; Dollar in Search of Answers
In a week brimming with financial intricacies, the most surprising element was the remarkable bounce-back in US stocks post the release of the compelling non-farm payroll report. Conventional wisdom would suggest that such a robust report would serve to reinforce Fed's inclination towards prolonging its restrictive monetary policy, even...
Dollar’s Ascendancy on Market Flux Challenged by Resilient Aussie and Kiwi
As the global financial markets tread through turbulent waters marked by escalating treasury yields and declining stocks, the US Dollar emerged as a beacon of strength. A noticeable uplift in the currency was observed last week, an upward motion fuelled by the twin factors of soaring treasury yields and...
Dollar’s Conundrum: Bullish Factors Met with Lackluster Gains
Despite a confluence of favorable conditions that are typically Dollar bullish — a decidedly hawkish Federal Reserve, plummeting stocks, and soaring yields — the greenback's response was unexpectedly tepid last week. While it managed to gain ground against European majors and Yen, it faltered when squared against the robust...
Rising Commodity Currencies, Mixed Dollar Fortunes, Crucial Decisions Looming on the Horizon
Commodity currencies were the biggest winners last week as the global tightening cycle draw closer to a prolonged pause. There was some optimism that China's economy is moving past the worst with improving economic data. The change in sentiment also lift oil prices, which was already lifted by tight...
Dollar Index Nearing Key Resistance Zone ahead of an Important Fortnight
In a week characterized by significant currency movements, Dollar asserted its dominance, closing as the top performer and pushing the Dollar Index tantalizingly close to a pivotal medium-term resistance zone. The upcoming fortnight will be instrumental in assessing Dollar's upside momentum, which, in turn, will shed light on whether...
Dollar Stays Resilient after Volatile Week, Euro Falters as Worst Performer
In a week marked by high volatility, Dollar proved resilient, closing within its established range against other major currencies after intra-week selloff. This performance quells, at least for now, fears of bearish reversal for the greenback. Indeed, sentiment has shifted to favor near-term upside for Dollar, which is likely...
Dollar Stands Tall, Euro and Sterling Down on Recession Worries
Dollar clinched the title of the week's best performing currency, even though there was just muted impact from Fed Chair Jerome Powell's remarks at Jackson Hole. While Powell's renewed commitment to combating inflation prompted traders to elevate their expectations for another rate hike within the year, broader market reactions,...
A Stormy Week With Selloff in Bonds, Stocks, Bitcoin and China
Last week, the financial world navigated a storm of uncertainty and volatility. From skyrocketing treasury yields to the extended declines in equities, from the downward spiral of Chinese stock market to the tumultuous Yuan exchange rate, and not forgetting the unexpected nosedive in Bitcoin. At the same time the...
Dollar Holds Up, Storm Brewing in Commodity Currencies
Dollar emerged notably resilient in a week of highly anticipated inflation data, clinching the top spot among currency performers. With the next FOMC meeting still more than a month away, the greenback's trajectory now rests heavily on the prevailing market risk sentiment. Critical to this equation is the capability...
Dollar Dominates Amid Bond Market Turbulence; Sterling and Commodity Currencies Lag
Last week ended with Dollar taking center stage as the best performer, driven by significant turbulence in the bond markets that sent long-end yields sharply higher and provided a mid-week uplift. Although the greenback experienced a notable pullback following non-farm payroll report, it still stands poised for potential further...
Yen Staying Bearish after a Wild Ride; Dollar Index Presses Key Resistance
The global financial markets found themselves in a flurry of volatility in the past week, underpinned by policy decision of three major central banks in North American, Europe, and Asia. Yen and Nikkei had the wildest roller-coaster ride in reaction to BoJ's tweak to their Yield Curve Control. In...
Dollar Turned into Consolidation Phase as Selling Passed Climax
Dollar recovered broadly last week and it seemed to have emerged from its near-term selling climax. While it's premature to call for bullish trend reversal, the greenback has likely entered at least a consolidation phase, with potential for a more robust recovery on the horizon. Dollar's next move will...
Dollar Nose Dived after Inflation Data, But Two Hikes Still on the Card?
Following the release of data indicating a steeper than anticipated slowdown in inflation, Dollar saw a marked decline last week, securing its position as the week's most significant loser in the currency markets. Concurrently, surge in stocks and tumble in benchmark treasury yields accompanied Dollar's descent.
At this juncture, it...
Yen Setting Up Bullish Reversal, Dollar Index Ready for 100 and Below
Japanese Yen exhibited an impressive rally last week and ended as the strongest performer. The move was spurred by Japan's substantial wage growth, which shot JGB yield higher and countered the impact of rising benchmark yields in the US and Eurozone. In light of these developments, signs are pointing...
Markets Resist Fed’s Outlook of Multiple Hikes: Bonds and Stocks Disagree, Dollar Rally Halted
Dollar bulls experienced a somewhat disheartening week, as the initial rally supported by hawkish remarks from Fed Chair was halted by subsequent inflation data release. Consequently, the greenback managed to secure only the third position for the week, trailing behind Swiss Franc and Euro.
The vigorous late-week rally in US...
Recession Concerns Eclipsed a Week Laden with Key Event; Aussie Bear the Brunt
A cloud of recession fears dominated a week full of significant events, with disappointing PMI data, particularly from Eurozone and US, dampening sentiment towards the end. Investors also grappled with mismatched expectations concerning Chinese fiscal stimulus, which added additional pressure on global stock indexes, driving them lower by the...
Global Markets Unfazed by Central Banks’ Moves, Risk-On Sentiment Prevails
Despite policy tightening from ECB and Fed's hawkish hold last week, global markets largely shrugged off the central banks' actions. Investors' sentiment remained buoyant, propelling many global markets to impressive rallies. Germany's DAX index even recorded a new all-time high.
In the forex market, Yen took a significant hit and...
RBA and BoC Bombshells Stir Market Waters; Dollar, Euro and Yen Suffered
Last week marked the beginning of an avalanche of central bank surprises, with both RBA and BoC springing unexpected rate hikes on markets. However, the market reactions diverged substantially. Despite a weaker-than-anticipated Australian GDP report and terrible Chinese trade data, Aussie's underlying strength was striking. In contrast, the Loonie's...
Risk-On Sentiment Continued, Dollar Relatively Resilient Despite Receding June Hike Expectations
Global stock markets registered impressive gains last week, with the resolution of the US debt ceiling and robust American job data contributing to the bullish momentum. The ebbing expectation of a Federal Reserve rate hike in June also provided additional support. Canadian and Australian dollars emerged as the week's...
Dollar Dominates as Market Anticipates Another Fed Rate Hike in June
Last week saw the US Dollar dominating the currency markets, with a surprising rally buoyed by market sentiments flipping in favor of an imminent Fed rate hike in June. An atmosphere of growing optimism pervaded the scene, buoyed by increasing confidence in a forthcoming agreement on raising the US...