Dollar Under Broad Based Pressure on USD/JPY Downside Breakout
Dollar's broad based decline resumes today with the help from downside break out in USD/JPY. Risk sentiments are firm on reopening optimism, with generally rally in European indices. Swiss Franc is pressured as the third weakest, following Dollar and New Zealand Dollar. Yet, Yen is not too bothered and...
Asian Markets Turned Mixed With Falling Oil and Gold, Kiwi Weakest
Despite extended stock rally in the US overnight, Asian markets turned mixed. Renewed weakness in oil price is a factor weighing on sentiments, as WTI crude oil is down at 11 handle, threatening 10 handle again. Gold also dips below 1700 handle, as Dollar is trying to recover. For...
Stocks Lifted by Lockdown Exit Optimism, Dollar and Swiss Weaken
Dollar and Swiss Franc weaken broadly today on optimism that many countries are heading towards lockdown exit. New Zealanders will return to work on Tuesday as alert level is shifted down at midnight. Even Italy is talking about reopening factories and buildings sites from May 4. New York is...
BOJ’s QE Expansion Likely Ineffective Despite Pledge of Unlimited Purchases
BOJ announced to expand QE today. It will increase support on corporate financing and remove the annual purchase limit for JGBs, from 80 trillion yen previously. Meanwhile, the central bank left the overnight rate unchanged at -0.1%, and the yield curve control (YCC) program in order to keep the...
FOMC to Highlight Weakness in Economy and Reinforce Dovish Stance in April Meeting
Following unprecedented measures announced in March, we expect the Fed to leave the policies unchanged at the April meeting. The focus will be on the economic assessment and the forward guidance. We expect the members to acknowledge the rapid deterioration in employment, demand, and confidence since the coronavirus outbreak....
Yen Mixed after BoJ’s Additional Easing, Aussie and Kiwi Strong
Yen is trading mixed after BoJ announced additional easing measures, following shortened monetary policy meeting. Australian and New Zealand Dollars are the strongest ones. Both countries have been performing extraordinarily well in containing the coronavirus spread and are planning for lockdown exits. On the other hand, Dollar and Swiss...
Aussie and Yen Ended as Strongest as Conoslidative Markets Remained Indecisive
The unimaginable negative oil price was the biggest head-liner last week. But the impact on other markets were relatively short lived. Canadian Dollar was much bothered for most of the week, but eventually it's just the second worst performing, following Sterling. On the other hand, Australian Dollar ended as...
CFTC Commitments of Traders – Traders Bet Crude Oil Price to Rebound after Collapse
According to the CFTC Commitments of Traders report for the week ended April 21, NET LENGTH for crude oil futures soared +76 511 contracts to 587 180 for the week. Speculative long positions jumped +35 774 contracts while shorts added -40 737 contracts. The WTI contract for May delivery...
CFTC Commitments of Traders – Bets on Lower British Pound Rose on Disappointing UK Data
As suggested in the CFTC Commitments of Traders report in the week ended April 21, NET LENGTH in USD Index added +259 contracts to 15 616. Speculative long positions gained +989 contracts and short positions added +723 contracts. Concerning European currencies, NET LENGTH in EUR futures rose +601 contracts...
Dollar Dips after Durable Goods Orders Contractions, Euro Pare Losses
The currency markets are relatively quiet today, with major pairs bounded inside yesterday's range. Dollar weakens after poor durable goods orders data, but New Zealand Dollar is even weaker. Euro recovers after yesterday's selloff, followed by Canadian Dollar ans Swiss Franc. For the week, Aussie is the strongest one,...
Euro Stays Weak in Mixed Markets, Canadian Attempting a Rebound
Euro and Swiss Franc remains broadly pressured today even though there is no follow through selling yet. But markets elsewhere are relatively mixed. While Australian and New Zealand Dollar attempted for a rebound, Dollar and Yen are not overwhelmed yet. Canadian Dollar is slightly stronger for now as oil...
Euro Downside Breakout after Terrible PMIs, Dollar Dragged by Jobless Claims
Euro suffers heavy selling in today on terrible PMI data, which suggests that the coronavirus pandemic damage could be far more severe than imaginable. The common currency drags down the Swiss Franc too. Dollar couldn't ride on Euro's weakness and even faces some selling after another set of astronomical...
Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price Collapse
Canadian dollar has only edged lower amidst the recent collapse in crude oil price. This is not usual given the strong correlation between the loonie and oil price, as well as the contribution of the energy sector to the country’s economy. We believe the FX market has not fully...
Euro Awaits PMIs as Markets Need More Guidance
Directions in the markets are relatively unclear for now. US stocks closed higher overnight, but relatively close to opens. Asian markets are mixed with slight gains in Nikkei and HSI. WTI crude oil seems to be stabilizing above 10 handle after horror actions earlier. In the currency markets, Dollar...
Downside Risks on WTI Crude Oil Remain High as Inventory Continued to Build Rapidly
WTI crude oil for May delivery expired at US$10.01/bbl on Wednesday, following a collapse to the negative territory a day earlier. The June contract (front-month) settled at US$ 13.78/bbl on the day. Lack of storage remains a problem in the US as demand has been sharply lowered due to...
Dollar Pares Gains as Oil and Stocks Recover, Yen Softens Too
Dollar pares back some of this week's gains as global risk markets recover. WTI crude oil June contract also trades higher and is back pressing 13 handle. Naturally, Yen follows the greenback as the second weakest for the day. On the other hand, Australian Dollar is the strongest, followed...
Dollar Firm on Risk Aversion, Oil Stays Pressured
Dollar and yen are staying in the driving seats for the week so far, on risk aversion. After the historic horrors of the May WTI oil contract, the markets are now into June contract, which is down at around 10. Asian markets are trading generally down, following the US....
Sterling and Commodity Currencies Pressured as Oil Rout Continues
Risk aversion stays in the markets today as WTI crude oil May future is back in negative territory above a brief stay above zero. Investors also turned cautious on news about critical health condition of North Korean leader Kim Jong-un. Yen and Dollar continue to trade as the strongest...
Negative Oil Price Prompts Risk Off, Dollar and Yen Jump
Markets are generally back in risk aversion, as selloff was sparked by historic move in oil prices. Yen and Dollar strengthen broadly as a result. Canadian dollar was weighed down slightly too but selloff is limited so far. Instead, New Zealand and Australian Dollars are the weakest for now....
WTI Crude Oil Price Dived to Negative as Oversupply Sparks Concerns about Storage
A day ahead of expiration, WTI crude oil futures for May delivery slumped into the negative territory for the first time on history. Plunging by over 100%, the May contract slumped to as low as US$ -40.32/bbl before settling at -37.63. In Asian session today, the contract recovered to...