Dollar’s Fall Continues as Core CPI Slows, Sterling Rises With UK Yields
Dollar's selloff continues in early US session and it's extending after weaker than expected core CPI reading. Sterling is lifted by strength in UK yield today, with 10-year Gilt yield hitting as high as 0.494 so far. It could try to take on a pre-pandemic floor of around 0.50%....
Dollar Selloff Continues as Risk Sentiment Stabilizes, More Downside Likely
Dollar stays broadly weak in Asian session today even though general sentiments stabilizes. Risk-seeking trading is taking a breather somewhat after US stocks hit new intraday higher overnight. Euro is currently the stronger one for today, followed by Sterling. But Swiss Franc and Yen are currently the best performing...
Silver is Preferred to Gold as Global Economy Recovers and Green Energy Gains Attention
While silver’s retreat from the 8-year high suggests that the media-inspired short squeeze has failed and further correction is likely, the metal should benefit from the global economic recovery and the new US fiscal stimulus package in the longer-term. Although both are in the precious metal category, silver will...
Dollar Stays Weak but Buying Turns to Swiss Franc and Yen
Dollar stays generally weak entering into US session. But as risk appetite cools slightly, buying focus is turning to Swiss Franc and Yen. Euro is currently following the two as the next strongest. Canadian Dollar is following Dollar as second weakest, then Aussie and Kiwi.
Technically, focuses will be on...
Dollar Selling Takes Off as US Stocks Hit Records
Dollar's selloff finally took off overnight as US stocks were boosted further to new record highs on reflation trade and vaccine optimism. Selling is really broad based this time, as the greenback tumbled even against Yen and Swiss Franc. For now, New Zealand and Australian Dollars are the strongest...
Sterling Retreats, Dollar Looks into Strong US Stocks and Yields
Dollar and Yen are both recapturing some ground as risk appetite cools slightly in European session. Still, US stocks futures point to more record runs today while yields are firm. We'll see if the greenback to ride on the trend to resume near term rebound. Canadian Dollar is currently...
Crude Oil Rallies, but Upside is Limited as Russia to Increase Output while Uncertainty to Recovery Still High
Crude oil prices rallied last week, with the front-month WTI and Brent contracts gaining +8.9% and 7.8% respectively. The market was thrilled by Saudi Arabia's voluntary output cut and increase in export prices. Stabilization in the pandemic also added optimism.However, producers such as Russia are likely to expand production...
Risk Appetite Sends Stocks and Oil Higher, Yen and Swiss Franc Weak
Risk-on sentiments continue in Asian session today with Nikkei hitting 30-year higher, while oil prices are also back at pre-pandemic level. Yen and Swiss Franc are currently the weakest one, together with Euro. On the other hand, commodity currencies are leading the way up naturally. Dollar and Sterling are...
Dollar Rally Choked by Job Data, Spotlights Turn to Sterling and Aussie
Dollar was in a pole position to end as the strongest major currency. But disappointing non-farm payroll report gave dollar bulls a reality check as the greenback ended mixed, after late selloff. Australian and New Zealand Dollar have indeed closed as the best performers, followed by Sterling. Euro, Swiss...
CFTC Commitments of Traders – Bets on Higher Euro Shrank Sharply
As suggested in the CFTC Commitments of Traders report in the week ended February 2, NET SHORT of USD Index futures added +111 contracts to 14 830. Speculative long positions gained +611 contracts, and short positions increased +722 contracts. Concerning European currencies, NET LENGTH in EUR futures sank -28...
CFTC Commitments of Traders – Crude Oil Broke Above Recent Narrow Range
According to the CFTC Commitments of Traders report for the week ended February 2, NET LENGTH for crude oil futures dropped -5 438 contracts to 499 174 for the week. Speculative long position dropped -932 contracts, while shorts added +4 506 contracts. WTI crude oil price broke above recent...
Dollar Drops Broadly Following NFP Disappointment
Dollar drops broadly in early US session after much smaller than expected non-farm payroll job growth, even though unemployment dipped notably. Canadian Dollar is some what pressured today after larger than expected job losses. But Yen is the one following the greenback as second weakest. Australian Dollar and Euro...
Dollar Strong in Risk-On Markets, Non Farm Payrolls in Focus
Return of risk-on markets, after some solid economic data, pushed S&P 500 and NASDAQ to new record highs overnight. Yen and Swiss Franc trade broadly lower naturally but Euro was not far behind. Commodity currencies, while firm, are so far overwhelmed by Sterling and Dollar. In particular, the greenback...
BOE Upbeat about Inflation Outlook. Negative Rate Seems Unlikely although It is Not Ruled Out
As expected, BOE left the Bank rate unchanged at 0.1%. Meanwhile, the QE program also remains at 875B pound worth of government bonds, and 20B pound of corporate debt. The economic projections reveal that policymakers are more optimistic about inflation projecting it to reach the +2% target this year....
Sterling Surges in Acceleration after BoE, Euro Dives
Sterling jumps sharply after BoE indicated that it didn't want to send a signal to the market on adopting negative rates. Dollar is also firm on overall mixed market sentiments. Thanks to the selloff against both the Pound and the greenback, Euro is currently the worst performing one for...
Sterling Softens ahead of BoE, Dollar Maintains Gains
Sterling softens notably today as focus turns to BoE rate decision, and more importantly the stance regarding negative interest rates. Euro and Swiss Franc remain generally weak too. New Zealand and Canadian Dollars are paring some gains as risk markets turned mixed again. But Aussie is somewhat bucking the...
US Crude Oil and Distillate Inventory Dropped while Gasoline Gained Last Week
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks gained +2.92 mmb to 1324.8 mmb in the week ended January 29. Crude oil inventory slipped -0.99 mmb (consensus: +0.45 mmb) to 475.66 mmb. Stockpile decreased in 4 out...
Euro Stays Weak Despite Better CPI, Dollar Shrugs Strong ADP Job Growth
Economic data released today are largely ignored so far. Euro's weakness continues despite stronger than expected inflation reading. Swiss Franc and Sterling are also softening slightly. Dollar, on the other hand, struggles to extend gain after much stronger than expected ADP employment. New Zealand Dollar continues to trade as...
Kiwi Rises on Job Data, Loonie Firm on Oil Price, Euro and Franc Weak
Canadian and New Zealand Dollar are both in the driving seats in the markets this week. Return of risk appetite is providing the base for rally. Meanwhile, Kiwi is lifted by stronger than expected job data while Loonie follows oil prices higher. Aussie is lagging behind on RBA, however....
Euro Tumbles Through Support, Canadian Surges With Oil’s Upside Breakout
Canadian Dollar is currently trading as the strongest one for today, following the upside breakout in oil price. The resilient Sterling is following as second strongest, awaiting BoE to rule out negative interest rates later in the week. On the other hand, Australian Dollar is the worst performing, after...