Mon, Jan 18, 2021 @ 00:53 GMT
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Dollar Weakens Against on Job Contraction, Downside Limited So Far

Dollar appears to be turning weaker again after non-farm payroll report showed the first contraction since April. Euro is currently following as second weakest for the than, than Canadian, which was also weighed down by employment data. On the other hand, Sterling is starting to reverse some of this...

Dollar Recovers Despite Strong Risk-on Markets, More Rebound after NFP?

Asian markets are staying in full risk on mode, except China, following the record runs in US overnight. However, this time, Dollar is not facing much selling pressure, but recovered instead. The reflation trade and strong rally in treasury yield might finally start to give the greenback a floor....

Dollar Recovering But No Follow Through Buying Seen Yet

Dollar extends recovery in European but there appears to be no follow through buying so far. It remains one of the weakest for the week, together with Yen and Sterling. Australian and New Zealand Dollars are paring some of this week's gains too. The US Senate and House certified...

Dollar Down Trend Continues as DOW Hit Record, Yen Weaker on Yields

Dollar is recovering mildly today but remains one of the weakest for the week, together with Yen and Sterling. Solid risk appetite, with DOW closing strongly at new record overnight, is keeping the greenback and Yen pressured. Yen appears to be slightly weaker with the sharp rally in treasury...

US Crude Inventory Declined, While Petroleum Stockpiles Soared

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks fell -1.66 mmb to 1343.7 mmb in the week ended January 1. Crude oil inventory fell -8.01 mmb (consensus: -2.13 mmb) to 485.46 mmb. Stockpile decreased in ALL 5...

Focus Turns to Yen Selling as Treasury Yields Surge

Yen selling takes center stage today, following strong rise in global treasury yields. In particular, US 10-year yield is trading at 0.99 at the time of writing, after hitting 1.037 earlier. Dollar remains generally pressured, and even the recovery against Yen is weak. The surprised contraction in ADP employment...

Aussie to Gain Further from Global Reflation Theme, Limited Impact from China’s Boycott

The global reflation theme of 2021 should continue to support AUDUSD. With the cash rate at the effective lower bound, RBA also extended asset purchases worth of AUD100B until mid-2021. Yet, it appears that there is little the central bank can do to curb the currency strength. Risks from...

Dollar Declines Further, Oil Up on Production Cuts

Dollar's decline resumed overnight and stays soft in Asian session today. Though, intensity of the selloff remains relatively weak. FOMC minutes is a feature today but that's unlikely to provide any inspiration for the greenback. Sterling is indeed still the worst performing one for the week for now, as...

Dollar Weakens in Quiet Markets, But Holding in Range

Dollar weakens again in rather quiet markets today. But there is no committed selling so far, as the greenback is staying inside yesterday's range. European majors also soften, on lockdown concerns, and shrug of solid German economic data. Commodity currencies are stronger in general, even though risk markets are...

Sterling Down on Lockdown, Dollar Mixed Despite Stocks Selloff

Sterling is currently trading as one of the weakest, as weighed down by the return to tough nationwide lockdown. Selloff in the Pound in crosses is keeping Euro and Swiss Franc afloat. Dollar attempted a rebound overnight, with the pull back in stocks. But there is apparently no follow...

CFTC Commitments of Traders – Decline in Net Length Seen in Both Crude Oil and Gold as Traders Took Profit at Year-End

According to the CFTC Commitments of Traders report for the week ended December 29, NET LENGTH for crude oil futures slumped -13 971 contracts to 511 731 for the week. Speculative long position fell -9 904 contracts, while shorts gained +4 067 contracts. For refined oil products, NET LENGTH...

CFTC Commitments of Traders – USD Index Finished 2020 in Net Short, Losing 6%

As suggested in the CFTC Commitments of Traders report in the week ended December 29, NET SHORT of USD Index futures slipped -318 contracts to 14 557. Speculative long positions gained +1 106 contracts and short positions added +788 contracts. USD Index dropped about -6% last year. Concerning European...

Dollar Breaking Down as Euro and Gold Jump

Dollar's selloff intensifies somewhat today, with solid risk appetite in the background. Though, Sterling is slightly weaker entering into US session. On the other hand, Euro and Swiss Franc are the strongest for now. Commodity currencies are also struggling to pick up buying despite rally in oil prices and...

JPY to Continue Grind against USD on Policy Convergence, Reduced Capital Outflow and Current Account Surplus

Japanese yen gained +5% against US dollar last year. The strength was only modest, compared with about +9% gains of AUD, EUR and CHF. Notwithstanding the lackluster improvement in Japan’s inflation outlook and exhaustion of BOJ’s stimulus, we expect Japanese yen to extend its modest gain against the greenback...

Dollar Trades Lower as Markets Open the Year on Firm Footing

Dollar trades generally lower today as Asian markets ex-Japan open the year on strong footing. Investors are generally riding on optimism of vaccine rollouts and an eventual sustainable global recovery. Though, for the short term, Japan is facing risk of more lookdowns while coronavirus infections in the US could...

Euro to Stay Positive against USD in 2021, though with Upside Limited

After gaining almost +10% this year, we expect EURUSD to strengthen further in 2021. While Eurozone continues to struggle with slow recovery and subdued inflation, the broad-based weakness in US dollar is anticipated to support the pair. As we mentioned in the previous report, we are bearish over US...

USD/JPY Accelerating Down as Dollar Selloff Continues

Dollar remains the worst performing one for today, after earlier downside breakout. Though, selling focus has shifted away from Euro. Currently, Australian Dollar an Sterling are the strongest one, followed by New Zealand Dollar. But Yen buying is accelerating in early US session. It's unsure who will end up...

Dollar Sellers are Back as EUR/USD Makes New High

Dollar's selloff picked up again as year end approaches. While US stocks took a breath overnight, Asia markets ex-Japan is enjoying some solid buying for now. While Euro is strong against Dollar, it's mixed against other European majors. Meanwhile, Canadian Dollar is clearly lagging behind Aussie and Kiwi in...

Euro Surges in Quiet Markets, Yen Dives with Nikkei’s Strong Breakout

Euro's rally is a focus in rather quiet markets today. Clearance of no-deal Brexit risk was a positive for the common currency. There's additional boost from rumors that a EU-China investment deal is likely this week. However, we'd like to point out that European Commission formally (in a statement)...

Dollar and Yen Weaken Again on Strong Risk-on Market

Dollar turns softer again in Asian session today as markets are back in full risk on mode. Following the record runs in US, Nikkei is also hitting new 30-year high. Yen is following as second weakest for now. However, risk appetite is not clearly seen elsewhere. Australian and Canadian...