Wed, Nov 13, 2019 @ 12:47 GMT
Euro surges as being boosted by ECB President Mario Draghi's comment. In his remarks, Draghi said that "incoming information confirms a robust pace of economic expansion, which accelerated more than expected in the second half of 2017." And, "the strong cyclical momentum, the ongoing reduction of economic slack and increasing capacity utilisation strengthen further our confidence that inflation will converge towards our inflation aim of below, but close to, 2%".
Swiss Franc and Yen weaken broadly again today as risk appetite returns to markets. In particular, US stocks are set to challenge record high, on trade optimism, as well as expectation of another Fed rate cut. European stocks, except...
Crude oil prices have steadied after the sharp correction over the past 7 weeks. Supporting the recovery are hopes of OPEC or OPEC+ production cut next month. OPEC and non-OPEC producer would meet in Vienna on December 6, discussing...
(Updated on 0230 GMT, May 30) 10-year Italy-Germany yield spread jumped further to 2.83%, highest since 2013, on May 29. Hopes of forming a populist coalition government in Italy hit the rocks as President Sergio Mattarella rejected eurosceptic Paolo Savona’s...
The front-month WTI crude oil contract slumped over 3% to settle at the lowest level in 2 months. This was the driven by the risk-off sentiment amidst Turkish crisis and the surprising increase in US inventory. The report from...
Dollar suffered a brief knee-jerk selloff after Fed raised interest rate as widely expected but stopped calling monetary policy as accommodative. But the greenback recovered as the overall announcement wasn't dovish at all. There were indeed more hawkish elements...
Dollar is given a lift in early US session by a set of overall solid employment. After initial hesitation, the greenback is gaining some upside momentum with GBP/USD dropping through 1.3096 minor support. USD/CHF also breaks last week's high at 0.9726 to resume rebound from 0.9347. Focus will now turn to 110.97 minor resistance in USD/JPY and break there will indicate near term bottoming. EUR/USD, though, stays firm above 1.1722 minor support and it's near term bullishness remains relatively safe.
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks declined -3.36 mmb to 1258.98 mmb in the week ended February 1. Crude oil inventory added +1.26 mmb to...
Dollar tumbles sharply as two Republicans senators announced their rejection of the US President Donald Trump's health care bill. The current version is short of at least two votes to advance and is seen as effectively dead by analysts. The development will further delay the work on tax and fiscal reforms, which are scheduled to come after health care. Markets continue to questioned the ability of Trump on pushing through his economic agenda and delivering his election promises. That adds to doubt of whether the economy could sustain another rate hike by Fed this year. Meanwhile, New Zealand Dollar follows as the second weakest currency after lower than expected CPI reading. On the other hand, Australian Dollar leads other currencies high as boosted by hawkish RBA minutes.
Hopes of a Brexit deal have once again lifted sterling. The latest optimism came after the “breakthrough” meeting between UK PM Boris Johnson and Irish PM Taoiseach Varadkar. The latter suggested he saw a“pathway to a deal” which could...
Dollar is under selling pressure again in early US session after weaker than expected inflation data. Headline CPI rose 0.5% mom, 2.2% yoy in Septembers, up from 0.4% mom, 1.9% yoy in August, but missed expectation of 0.6% mom, 2.3% yoy. Core CPI rose 0.1% mom, 1.7% yoy, comparing to August's 0.2% mom, 1.7% yoy. More importantly, core CPI missed consensus of 0.2% mom, 1.8% yoy. Retail sales came in slightly better than expected and rose 1.6% in September. Ex auto-sales rose 1.0%. Dollar was sold off earlier this week after FOMC minutes showed policymakers are concerned with sluggishness in inflation. It's resuming that selloff now and that should keep Dollar as the weakest one for the week.
China's official PMIs surprised to the downside in February. Manufacturing PMI dropped -1 point to 50.3 in February, while non-manufacturing PMI slipped -0.9 point to 54.4. The readings came in weaker than expectations of 52.1 and 55 respectively....
Yen's weakness continue in quiet trading today and trades a touch softer after trade balance release. But overall, the markets are trading in tight range. The only exception is New Zealand Dollar which is resuming this month's broad based rally ahead of RBNZ rate decision on Thursday. Sterling recovers mildly as Brexit negotiations are finally starting today. Dollar and Euro are mixed. In other markets, gold is trading in tight range between 1250/60 for the moment. WTI crude oil is also range bound below 45 handle.
Showing genuine concerns over the downside risks to inflation, BOC indicated it would be more 'cautious' over future rate hike decisions. In the concluding statement, policymakers stressed that 'while less monetary policy stimulus will likely be required over time, Governing Council will be cautious in making future adjustments to the policy rate'. The tone in this October appears more dovish than previous ones, likely resulting from recent developments of disappointing progress in NAFTA negotiations, household debt levels and appreciation of Canadian dollar. USDCAD jumped about +1% after the announcement.
The RBA minutes of the August meeting contained little news, in particular after release of the quarterly Statement of Monetary Policy two weeks ago and Governor Philip Lowe’s parliamentary testimony last week. The minutes reiterated confidence over domestic economic...
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks jumped +6.73 mmb to 1192.25 mmb in the week ended May 18. Crude oil inventory rose +5.78 mmb (consensus: -1.57 mmb)...
RBNZ left the OCR unchanged at 1.75%. While the central bank reiterated its “neutral” monetary policy stance, the accompanying statement revealed that policymakers have turned slightly more dovish than previous months. The members were concerned about global trade tensions...
Canadian Dollar ended last week as the strongest one. Strength in oil price, with WTI hitting four-year high was a factor. Solid Canadian GDP and Business Outlook Survey also support a July BoC hike. Euro followed as the second...
Asian markets turned mixed after US stocks stabilized overnight. Treasury yields remain pressured though, as 10-year JGB yield hit the lowest level since 2016. In the currency markets, Dollar strengthens mildly today after a Fed dove dismissed an emergency...
Dollar spikes lower in early US session after non-farm payroll report showed lower than expected job and wage growth. That adds to argument that the momentum US job growth has peaked. Nevertheless, there is no follow through selling in...
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