Dollar Holding in Range, FOMC Awaited
The markets continues to trade in non-committal way as traders await Fed's comments on treasury yields. Swiss Franc is currently the strongest one for the week, thanks to yesterday's rally. But there is no follow through buying so far. Canadian Dollar is following closely as the second strongest. Euro,...
BOE Preview – Response to Rising Yields in Focus
We expect BOE to vote 9-0 to leave the Bank rate unchanged at 0.1%. Meanwhile, the QE program will also stay at 875B pound worth of government bonds, and 20B pound of corporate debt. Despite contraction in the first quarter, policymakers should point to the post-pandemic recovery as driven...
Yen and Swiss Rebound, Sterling Decline Fades Quickly
There isn't really a clear direction in the currency markets today. Sterling's selloff in European session quickly faded. Focus is turning to Yen and Swiss Franc rebound in early US session. Weakness in treasury yield is a factor driving the changes. Japan 10-year JGB yield closed back blow 0.1%...
Sterling Dips Against Euro and Swiss, S&P 500 Hit New Record
Markets remain cautious overall. While DOW and S&P 500 hit new record highs overnight, the gains were just modest. Gold and WTI oil are also both stuck in tight range, awaiting breakout. In the currency markets, Sterling is apparently under some pressure from cross selling against other European majors....
Canadian Dollar Strong in Subdued Markets, Yen Weak
Trading is generally subdued in the markets today. European indices are stuck in very tight range while US futures point to slightly higher open. Both gold and oil are bounded in consolidative trading. Bitcoin was short to new record high but quickly reversed. In the currency markets, New Zealand...
China Economic Activities Expanded Significantly, Mainly Due to Low Base Effect
China's macroeconomic data for the first two months of this year have delivered a mixed message. While growth in industrial production (IP), retail sales and urban fixed asset investment (FAI) all exceeded 30% when compared with the same period of last year, this was driven by the exceptionally low...
FOMC Preview – Expect to See Upgrade in GDP Growth Projections
The focus of this week's FOMC meeting is how the Fed would respond to the rising Treasury yields and the rapid improvement in the economic conditions. We expect policymakers to upgrade the GDP growth forecasts and attribute rising yields to improvement economic confidence. Yet, the tone should remain cautious....
Yen Soft in Mixed Markets, Strong China Data Shrugged
The markets are generally mixed in Asian session today. Strong data from China were shrugged by investors in general. Instead, sentiment is a bit cautious ahead of the highly anticipated FOMC meeting in the middle of the week. Yen is trading as the weakest for now, followed by Aussie...
CFTC Commitments of Traders – Crude Oil Shorts Trimmed as Price Rallied Further
According to the CFTC Commitments of Traders report for the week ended March 9, NET LENGTH for crude oil futures rallied +18 419 contracts to 537 438 for the week. Speculative long position gained +4 279 contracts, while shorts declined -14 140 contracts. For refined oil products, NET LENGTH...
CFTC Commitments of Traders -Net Short of USD Index Futures Fell as Rising Yields Lent Support
As suggested in the CFTC Commitments of Traders report in the week ended March 9, NET SHORT of USD Index futures fell -1 216 contracts to 8 887. Speculative long positions gained +2 992 contracts while shorts were up 1 776 contracts. Concerning European currencies, NET LENGTH in EUR...
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...
Canadian Dollar Jumps on Strong Job Data, Dollar Rebounds With Yields
Dollar rebounds broadly again today as markets are unsettled by renewed strength in treasury yield. At the time of writing, US 10-year yield is back pressing 1.6 handle. DOW future is trading mildly higher, but NASDAQ futures is down -1.3%. Though, Canadian Dollar is even stronger as lifted by...
Sterling and Aussie Rise as Risk-On Sentiment is Back
Sterling and commodity currencies are back in driving seat on positive market sentiments. Nikkei rises sharply in Asian session, following another record close in DOW overnight. Treasury yields also appear to have settled in range after this week's central bank rhetorics. For now, Yen is the worst performing for...
ECB to Accelerate Asset Purchase as Rising Bond Yields Tighten Market
While leaving the monetary policy measures unchanged, the ECB indicated that it would increase asset purchases in coming months. The move is a response to the rise of bond yields which could tighten the financial conditions. On economic developments, the central bank attributed the likely contraction in 1Q21 to...
Euro Mildly Softer after ECB, But Dollar and Yen Even Weaker
Euro softens mildly after ECB announced to speed up PEPP purchases in the next quarter. But loss is relatively limited as the overall envelop was kept unchanged. Dollar and Yen are currently the worst performing one for today, on the back of risk-on sentiments. Commodity currencies are currently the...
Sentiments Approved after US 10-Yr Auction, ECB Comments on Yields Awaited
Australian Dollar leads other commodity currencies higher today on improved market sentiments. Asian stocks are trading generally higher, following the record close in DOW overnight. Investors found some comfort from the soft yet acceptable 10-year auctions. Dollar, Yen and Swiss Franc turn softer as a result. Now, focus will...
BOC More Upbeat on Economy, Hinted to Taper as Outlook Continues to Improve
As widely anticipated, the BOC left all monetary policy measures unchanged. While being more upbeat about the economic developments, the members noted that the policy rate will stay unchanged as least until inflation target of 2% is "sustainably" achieved. Meanwhile, they hinted of adjusting the size of asset purchases...
US Crude Oil Inventory Increased to Highest Level This Year
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks gained +1.32 mmb to 1283 mmb in the week ended March 5. Crude oil inventory soared +13.8 mmb (consensus: +3 mmb,) to 498.4 mmb. The increase remained large although...
Range Trading Continues as US 10-Year Auctions Awaited
The markets are rather quiet so far today with slow news flow. Major currency pairs and crosses are stuck inside yesterday's range, in consolidative trading. Other markets are also mixed, with some hope for DOW to hit new records, but other indices are weak. US consumer inflation data provides...
Dollar Recovers after Brief Retreat, More Treasury Auctions Ahead
Dollar's pull back overnight was relatively short-lived as it regains some footing in Asian session today. Sentiments stabilized with US stocks closed higher yesterday, with NASDAQ staged a strong rebound. Treasury yields also retreated mildly. The auction of USD 58B in US 3-year notes was seen as well received,...