Singaporean Central Bank Turns Hawkish on Upward Core Inflation Pressure
The Monetary Authority of Singapore* (MAS) last Friday announced to increase the slope of the Singaporean dollar nominal effective exchange rate (SGD NEER) policy band “slightly”, the first adjustment since the policy tool was reduced to 0% in April 2016. As usual, the central bank did not disclose how...
Yen Making a Come Back in an Important Week for BoE and BoC
Yen is making a come back in Asian session today. The reaction to the Syria strike was muted. But risk aversion comes back with selloff in Chinese and Hong Kong stocks. Nikkei is maintaining slight gain of 0.25% at the time of writing. But China SSE and Hong Kong...
Traders Mixed on Oil as Prices Soared to Fresh 4-Year Highs
Speculators were mixed over the energy complex in the week ended April 10. Net LENGTH for crude oil futures rose +7 535 contracts from a week ago to 707 080. NET LENGTH of heating oil added +330 contracts to 14 31 while net LENGTH for gasoline plunged -7 566...
Yen and Franc Ended as the Weakest Ones as Risk Aversion Temporarily Eased, Reaction to Syria Strikes Watched
Easing risk aversion was the main theme last week as Japanese Yen and Swiss Franc ended as the weakest two. It's not the kind that investors were in euphoria. But nonetheless, major stock indices around the world ended up higher. Dollar ended as the third weakest despite markets firming...
Yen Selling Intensified, Dollar Supported by Hawkish Fed Rosengren
Yen continues to be the weakest one today as selloff intensifies in European session. Relieves from immediate risks are still as the major reason driving the Japanese currency down. Australian Dollar continues to be the strongest one with AUD/USD and EUR/AUD taking out key near term levels. Dollar was...
Australian Dollar Higher after China Data, EUR/AUD in Focus
Australian dollar strengthens broadly in Asia session as lifted mildly by China's trade data. The Aussie is also among the strongest ones for the week, together with Canadian Dollar and New Zealand Dollar. Euro suffered some selloff overnight, in particular against, Sterling. But the common currency quickly found footing...
Euro Tumbles after ECB Minutes, Dollar and Stocks Love Trump’s Uncertain Timing on Missile Strike
The financial markets don't always hate uncertainties. Sometimes, they embrace it. US President Donald Trump backed down from his initial tough stance on Syria, and it's now unsure when he will order firing of missiles over it. European equities cheered the newly created uncertainty with DAX turning initial loss...
Oil Prices Gained for Three Days in a Row, Despite Inventory Build
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks soared +5.97 mmb to 1191.55 mmb in the week ended April 6. Crude oil inventory gained +3.31 mmb to 428.64 mmb, amidst increases in 4 out of 5 PADDs. Stockpile in...
Euro to Look into ECB Minutes for Guidance, Markets Steady in Asia
The Asian markets are relatively steady today as for now, there is no escalation in the situation in Syria. At the time of writing Nikkei is trading down -0.26% only while HK HSI is down -0.17%. Performance of US indices overnight were not too bad. DOW closed down 0.9%...
FOMC Minutes: Fiscal Stimulus During Full Employment Facilitates Inflation to Reach +2%
The FOMC minutes for the March meeting reinforced the members’ confidence over the economic growth outlook and that inflation would return to the +2% target in the medium-term. The confidence was mainly driven by the tax reform plan passed late last year as well as passage of the Federal...
Risk Aversion Comes Back on Syria Tension, Dollar Gets No Help from CPI
Risk aversion comes back to the markets today. Syria tension comes into spotlight and US-China trade war leaves the stage temporarily. DAX turned south at initial trading and never looked back. It's currently trading down -1% at the time of writing. CAC id down -0.67% while FTSE is down...
Dollar Stays Weak as Focus Turns to US CPI and FOMC Minutes
Risk appetite stays strong so far with receding fear of full-blown trade war between US and China. Major US indices closed up overnight with DOW gaining 1.79%, S&P 500% risen 1.67% and NASDAQ up 2.07%. Hong Kong HSI is lifted further by more specific details regarding China opening up...
Yen and Dollar Broadly Lower, Markets on Risk on Mode as Trade War Fear Temporarily Relieved
Japan Yen and, to a slightly lesser extent, Dollar suffer broad based selloff today as global markets return to risk seeking mode. Major European indices are generally higher with DAX up near 1% at the time of writing. CAC is up 0.55% and FTSE is up 0.6%. That followed...
China Xi Jinping in Boao Forum: Reinforces Ease of Restrictions for Foreign Investment and Protection of Intellectual Property Rights
Speaking at the Boao Forum, sometimes known as "Asian Davos", Chinese President Xi Jinping announced four major areas of reform in opening up the market. First, the government would “significantly” ease market access, lowering restrictions for foreign investment in a number of Chinese sectors. In the financial industry, Xi...
USD Dominance Stays Despite Twin Deficits and Threats to Sell Treasury
In IMF’s latest world FX reserve report*, central bank’s/ reserve managers’ demand for US dollar remained intact in 4Q17. This has not only reinforced the greenback’s dominant status as the world’s reserve currency, but also signaled other currencies still failed to gain widespread confidence due to the economic and/...
Markets Cheer as China Xi Didn’t Escalate Tension with US, Australian and Canadian Dollar Lead the Way Up
Asian markets responded positively to the highly anticipated speech by China President Xi Jinping. At the time of writing, Nikkei is trading up 0.65% and HK HSI is up 1.14%. But it should be noted that Nikkei is already trading way off today's high at 21933.99. We could see...
Sterling Surges Broadly, Taking Europeans Higher; Dollar Selling Emerges into US Session
Sterling surges broadly today and is so far trading as the strongest one. Some point to solid housing data as a trigger for the buying. Mortgage lender Halifax house price rose more than expected by 2.7% in Q1. And that should be something welcomed by BoE hawks on their...
Asian Markets Shrugged Off US Selloff; FOMC Minutes, NAFTA and Trade War Watched This Week
Asian markets open positively this week in spite of the sharp selloff in the US on Friday. At the time of writing, Nikkei is trading up 0.55%. China is back from holiday with SSE up 0.35%. Hong Kong HSI is also up 1.8%. The lack of risk aversion lifts...
Traders Turned Bearish on Both Oil and Gold
CFTC Commitments of Traders
Speculators turned bearish over the energy complex in the week ended April 3. Net LENGTH for crude oil futures plunged -16 225 contracts from a week ago to 699 545. NET LENGTH of heating oil slipped -586 contracts to 14 401 while net LENGTH for gasoline...
Dollar Mixed as Markets Pared Back Expectations of Fed Hikes Slightly, after NFP and on Trade War
US-China trade war was the dominant theme in the financial markets last week. US started by announcing the list of 1300 product lines to be tariffed under Section 301 actions. China quickly responded by announcing 25% retaliation tariffs to US imports, matching the size of USD 50b product values....