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Speculations Over Fed’s Next Move Grow Increasingly Complex

Trading activity is relatively subdued today, with most major currency pairs and crosses hovering within the previous day's range. Australian and New Zealand Dollars are showing some resilience, maintaining their position as the firmer currencies, albeit without significant momentum. Swiss Franc has also edged higher in the daily performance...

Kiwi and Aussie Rise on China’s Market Boost, Dollar Weakens Ahead of FOMC Minutes

New Zealand and Australia Dollar rise appreciably in Asian session today, buoyed by a significant rebound in stock markets of China and Hong Kong. This positive momentum is largely attributed to the ripple effects of China's larger-than-expected interest rate cut earlier in the week. Hang Seng Index, in particular,...

Disinflation Progress Spurs Loonie Decline, Euro Climbs on Wage Data

Canadian Dollar weakens broadly in early US session, sparked by data indicating a stronger-than-anticipated progress in disinflation. Headline CPI fell below the 3% mark, accompanied by significant easing in core inflation measures. This development potentially opens the door for BoC to consider an interest rate cut sooner than anticipated,...

China’s Rate Cut Meets Indifferent Markets, Canada CPI Takes Center Stage

The financial markets are rather calm in Asian session today, while major currency pairs and crosses largely engage in a phase of consolidation. This tranquility comes in the wake of China's surprising decision to significantly lower its mortgage reference interest rate, a move designed to provide a much-needed boost...

Subdued Trading and Anticipation for RBA Minutes

Activity in the global financial markets are rather muted today, with major European stock indexes reading water within a narrow range. US futures are also showing little change, reflecting the quietness of US market holiday. In the currency sphere, movements are similarly subdued, with Euro and Swiss Franc ranking...

Services Sector Boost and Shifting RBNZ Rate Forecasts Propel NZD Higher

New Zealand Dollar bounces broadly in quiet Asian session, partly underpinned by notable improvement economic data which showed that the services sector has swung back into expansion at the start of 2024. Additionally, economists are increasingly expecting that more work is needed by RBNZ to cool the economic to...

Market Optimism Endures Through a Week of Economic Paradoxes

This past week showcased a rollercoaster of economic revelations and market responses. Despite a mix of apprehensions, especially surrounding inflation and monetary policies, the prevailing mood remained decidedly risk-on. That culminated in DOW and S&P 500 reaching unprecedented highs, even though both concluded the week on a relatively subdued...

Dollar Finds Footing on Strong PPI Data

Dollar stages a notable recovery in the early US session, buoyed by stronger than expected January PPI figures. The highlight was PPI excluding foods, energy, and trade services, which saw its largest monthly increase in a year, hinting at persistent underlying inflationary pressures upstream. Despite the current rebound rebound,...

Yen Dips as Nikkei Charges Toward Record High

Yen weakens mildly in Asian session today, contrasting with Nikkei's continued up trend towards historical high made in 1990. This development comes amidst diminishing impacts of Japanese officials' verbal interventions aimed at stemming Yen's decline. Without tangible policy measures to back these statements, the currency's depreciation has persisted. Meanwhile,...

Dollar Setback on Poor Retail Sales, Sterling Faces Recession Woes

Dollar's pullback intensifies in early US session, prompted by unexpectedly poor retail sales data for January. This underwhelming performance is reigniting debates about the enduring strength of consumer spending, a critical factor in fueling inflation. Although a single data point does not dictate the broader economic narrative, it nonetheless...

Japan’s Recession Can’t Hold Back Yen’s Recovery and Nikkei’s Surge

Japanese Yen recovers broadly in Asian session today, while Nikkei also soared to a new 34-year high, surpassing the 38k mark. The move came as a rather complex reactions to economic data showing that Japan unexpectedly slipping into recession. The surprised downturn also led to the country's demotion to...

UK Inflation Data Tempers Sterling, But Impact Limited

Sterling is taking a modest step back today, responding to UK's latest inflation report that came in below market expectations. Despite this, the actual figures for both headline and core CPI merely held their ground compared to the previous month's readings, signaling continued pause in disinflationary progress. Additionally, the...

Eyes on UK Inflation While Dollar Dominance Continues

Dollar maintains its position as the week's top performer so far, following notable upside breakouts, while Asian markets remain relatively quiet. Without major economic releases from US today, the greenback could have a breather first. However, attention is set to return later in the week with the release of...

Core Inflation Slowdown Hits a Snag, Dollar Rises Amid Fed Cut Uncertainties

Dollar rises significantly in early US session supported by the latest consumer inflation data, which also triggers a marked in DOW futures, dropping by over -300 points. Concurrently, 10-year Treasury yield is soaring near 4.3% mark. Most critically, the inflation data revealed that core CPI remained unchanged at 3.9%...

A Packed Day With UK Employment, Swiss CPI, German ZEW, and US CPI

New Zealand Dollar falls notably during Asian session, triggered by the latest survey from the RBNZ, which revealed a further easing in inflation expectations. The implications of these findings have prompted traders to pare back the bets on the likelihood of more monetary tightening imminent meeting February. Australian Dollar...

Yen Regaining Ground, GBP/AUD Staying Bullish Despite Loss of Momentum

Japanese Yen stages a broad recovery today, buoyed by notable retreat in European benchmark yields. Meanwhile, Dollar is softening against Yen, yet holding its ground across other major currencies. New Zealand Dollar emerges as the day's underperformer, yet its losses remain contained within Friday's range against all counterparts. Sterling...

Asia Calm in a Quiet Prelude, US CPI and UK Major Data to Highlight the Week

Today's Asian session sees an unusual quietness across the region, with major markets closed for holidays, leading to limited movement among major currency pairs and crosses. New Zealand Dollar is having a slight downtick following RBNZ Governor Adrian Orr's appearance before a parliamentary committee, where he left market participants...

Central Bankers Work to Recast Rate Expectations, Yet Market Optimism Remains Unwavering

Last week's financial markets were characterized by a mix of resilience, speculation, and divergent central bank signals. In the US, the narrative remained steadfast with Fed officials emphasizing a patient approach towards monetary policy, firmly pushing back against the market's eager anticipations for imminent rate cuts. This cautious did little...

Canadian Dollar Rises on Strong Job Data, Yen and Franc Weakness Persists

Canadian Dollar bounces broadly in early US session, bolstered by unexpectedly robust Canadian employment data. This development comes amidst cautious remarks earlier in the week from BoC Governor Tiff Macklem, who tempered expectations by noting that achieving the 2% inflation target would be a gradual process, fraught with persistent...

Franc and Yen Underperform, Canadian Dollar Anticipates Jobs Report

Swiss Franc and Japanese Yen are currently the weakest performers for the week on a couple of interrelated factors. Firstly, global central bankers are tempering expectations for early rate cuts, suggesting rate difference between SNB/BoJ and other central banks would remain large for longer. This stance has been further compounded...