Sterling Softens as Traders Await Brexit Clarity, Aussie Lost Momentum after Initial Rally
Sterling is trading as the weakest one for today so far after suffering some selling in European session. No support is seen for the Pound even though high profile Brexiteer Jacob Rees-Mogg indicated that he might support Prime Minister Theresa May's Brexit deal. However, loss is limited in Sterling...
Australian Dollar Surges as Asian Stocks Rally. Fed, SNB and BoE to Meet This Week
Strong rally in Chinese stocks is lifting Asian markets broadly higher today. Chinese president Xi Jinping is set to visit Italy, France and Monaco from March 21 to 26 this week. While there's no detail on the visits yet, it's believed that there could be signing of an agreement...
CFTC Commitments of Traders – Bets on Rising USD Rose ahead of FOMC Meeting
As suggested in the CFTC Commitments of Traders report in the week ended March 12, NET LENGTH in USD Index gained as increase in longs outweighed that of shorts. With the exception of NZD, all major currencies stayed in NET SHORT positions. Speculative longs on USD index gained +3...
CFTC Commitments of Traders – Bets for Higher Crude Oil Price Increased as Shorts Trimmed Sharply
According to the CFTC Commitments of Traders report for the week ended March 12, NET LENGTH for crude oil futures gained +13 464 contracts to 362 265 for the week. Speculative long positions added +2 513 contracts while shorts slumped -10 951. Crude oil prices strengthened last week. Yet,...
With No Clarity on Brexit and Trade War Yet, Focus Will Turn to FOMC Projections
Sterling ended last week as the strongest one as no-deal Brexit is now politically ruled out. But it should be noted that the path forward remains unclear, as least for a few more days. Thus, the upside breakout of Sterling was indecisive. The Pound has indeed closed below recent...
Markets Mixed ahead of Weekend, Lack Direction
The forex markets turned mixed ahead of weekend as there is a lack of theme driving the moves. Swiss France turned weakest global stock markets jump mildly. Canadian Dollar is the second weakest as WTI crude oil retreats sharply ahead of 60 handle. Sterling is the third weakest as...
FOMC Preview: Fed to Maintain Dovish Tone and Announce Plan to End Balance Sheet Reduction
At the upcoming FOMC meeting, the members would vote to leave the Fed funds rate target at 2.25-2.5%. We expect reinforcement of the dovish message conveyed in January. The focus is on the plan to complete the reduction of its balance sheet, which peaked at US$ 4.5 trillion in...
Yen Lower on Asian Stocks Rally, BoJ Notes Weakness in Exports
Risk appetite is having a mild comeback in Asia today and commodity currencies are taking advantage of that. Meanwhile, Yen, Dollar and Sterling are also soft. The greenback shrugs off strong rebound in treasury yields overnight. Yen is weighed down mildly by BoJ's downgrade on exports outlook. Meanwhile, Sterling...
Sterling Mixed as UK Will Decide on Brexit Delay, Aussie Dragged Down by China
Sterling turns mixed as markets await yet another vote about Brexit in the Commons today. MPs is now given a chance to vote for delaying Brexit beyond March 29. The question is whether it would be a short delay with a plan, a short delay without a plan, or...
Sterling Spiked Higher as No-Deal Brexit Ruled Out, Aussie Weighed Down By Chinese Data
Sterling spiked higher overnight after UK Commons voted to reject no-deal Brexit. But there was no follow through buying as the Pound settles back into familiar range quickly. It's indeed the weakest one for today so far, paring some of the gains. Focus will now turn to vote on...
Slowdown in China Remains Pronounced Even After Adjusting for Seasonal Factors
China released its latest macroeconomic data for the first two months of the year. Due to Lunar New Year holiday, the January figures for retail sales, industrial production and fixed asset investment were not released. Despite signs of improvement, the set of data, together with inflation and trade reports...
Canadian Dollar Jumps as WTI Crude Oil Breaks 58, Sterling Firmer ahead No-Deal Vote
The financial markets are pretty directionless and traders await vote on no-deal Brexit in the UK parliament. Sterling remains the strongest one for now on recovery. But upside is limited below near term resistance against other major currencies. That is, the Pound is merely gyrating in recently established range....
Sterling Range-Bound as Focus Turns to No-Deal Vote, Yen Firm
After much volatility in the past 24 hours, Sterling is staying in familiar range against Dollar, Euro and Yen. UK Prime Minister Theresa May's Brexit deal was voted down by the Commons. That puts Brexit back into the original path. A no-deal vote will be held today and is...
Brexit Update – Deal Rejected for Second Time
The UK parliament again defeated, by 149 votes, the Withdrawal Agreement that PM Theresa May secured from the EU parliament. Despite the changes, attorney general Geoffrey Cox suggested the UK still would risk struck in the Irish backstop indefinitely. His opinion has raised concerns of both Brexit hardliners and...
Sterling Reverses as Brexit Turns Back into a Mess after Legal Setback
Sterling reverses and dives sharply as Brexit turns into a mess again. The new assurances UK Prime Minister Theresa May got from EU provided some nervous hope earlier today. But legal advice from Attorney General Geoffrey Cox killed the chance of getting the Brexit deal through the meaningful vote...
Pound Surges on Brexit Breakthrough, Yen Lower as Risk Appetite Returns
Sterling made a massive come back and is trading as the strongest one for today, as boosted by breakthrough in Brexit. At least, UK Prime Minister Theresa May believe she got important legally binding changes that's adequate to satisfy the parliament. The Pound could be given further lift ahead...
Sterling Recovers Awaiting Brexit Clarify, Dollar Shrugs Retail Sales Data
Risk markets attempt to recover today but lacks clear momentum. Nonetheless, that's enough to send Swiss Franc generally lower. At the time of writing, Canadian Dollar is the second weakest. Dollar follows as third weakest despite better than expected retail sales. Sterling on the other hand recovers broadly after...
Sterling Lower as Crucial Brexit Votes Loom But There’s No Sign of Progress
Sterling opens the week lower and stays generally weak today. As the crucial Brexit votes loom there is no breakthrough on the issue of Irish backstop. EU's so called "concessions" were rejected by the UK government. And there is practically no chance of getting the same Brexit deal through...
CFTC Commitments of Traders – Traders Increased Bet for Rising Crude Oil Price
According to the CFTC Commitments of Traders report for the week ended March 5, NET LENGTH for crude oil futures soared +21 130 contracts to 348 801 for the week. Speculative long positions rose +11 421 contracts while shorts declined -9 709. For refined oil products, NET LENGTH for...
CFTC Commitments of Trades – Traders Trimmed Bets on USD amidst Uncertainty of Rate Hike Outlook
As suggested in the CFTC Commitments of Traders report in the week ended March 5, NET LENGTH in USD Index gained although bets decreased on both sides. With the exception of NZD, all major currencies stayed in NET SHORT positions. Although the market has trimmed expectations of a rate...