Quiet Market With Trade Tensions Simmering, Japan’s Tankan in Focus
Forex trading remains subdued and directionless, with most major pairs and crosses holding within Friday’s ranges. Traders appear to be in wait-and-see mode ahead of a packed US data schedule. The spotlight turns first to Tuesday’s ISM Manufacturing report, then to Thursday’s ISM Services and the highly anticipated non-farm...
Canada Reverses Digital Tax to Save U.S. Trade Talks; Loonie Recovers Modestly
The forex market opened the week with low volatility and mixed Asian equities, but politically driven developments are keeping some G10 currencies in motion. Dollar is the weakest performer so far, with the Canadian Dollar also under pressure despite rebounding from weekend lows. Yen leads amid safe-haven inflows, while...
Dollar Index Hits Multi-Year Low and Broke Long Term Fibonacci Level
Dollar ended last week as the weakest major currency, with Dollar Index breaking to a fresh three-year low. Risk-on sentiment was a key driver: US equities surged following the Israel-Iran ceasefire, and S&P 500 and NASDAQ both posted record closes on Friday. Rising expectations of rate cuts from Fed...
Dollar Stays Weak as Traders Weigh Hawkish PCE and Dovish Spending Signals
Dollar enters the US session mixed, as markets digest a batch of data offering signals to both sides of the policy debate. The greenback is seeing additional selling against Euro and Swiss Franc, but recovering modestly against commodity-linked currencies.
Core PCE inflation rose faster than expected in May, providing Fed...
Risk Appetite Holds, Dollar Extends Losses Markets Eye PCE into Friday’s Finish
Global risk sentiment remains firm heading into the weekend, with both S&P 500 and NASDAQ pushing near record highs overnight. Asian markets followed suit, with Japan’s Nikkei breaking above the symbolic 40k mark, extending its robust rally driven by AI optimism and strong corporate earnings.
The bullish tone persists despite...
Dollar Struggles After Mixed Data; Yen Rallies With Nikkei Surge
Dollar weakness continues to dominate FX markets, with the greenback staying under pressure across the board. he spotlight is on which currencies are capitalizing the most. Yen is stealing the show, along with sharp rally in the Nikkei as AI-fueled optimism sends semiconductor shares surging. Swiss Franc and Aussie...
Dollar Slides to Multi-Year Lows Against Euro, Pound on NATO Spending Boost
Dollar weakness deepened in Asian session, with the greenback falling to multi-year lows against both Euro and Sterling. For now, downside pressure remains concentrated against European majors. The latest catalyst is a show of fiscal resolve from NATO allies, who agreed to more than double their defense spending target...
Dollar Stabilizes After Slide as Calm Returns to Markets
Wednesday brought a lull in FX volatility as Dollar’s selloff eased, though it remained broadly under pressure for the week. The geopolitical backdrop is calmer, with the Israel-Iran ceasefire appearing stable for now. Trade talks seemed to be on hold, and with no major data releases on deck, markets...
Fed Officials Push Back on July Cut, But Dollar Remains Under Pressure
Dollar remains under broad pressure midweek and is currently the weakest performer among major currencies. While dovish signals from Fed Vice Chair Michelle Bowman and Governor Christopher Waller cracked open the door for a July rate cut, that narrative has cooled. Several other Fed officials have voiced caution, pushing...
Ceasefire Frays but Markets Stay Steady; Fed’s Powell Keeps Inflation Guard
Global markets continue to trade with cautious optimism, despite signs of strain in the fragile Israel-Iran ceasefire. Reports out of Tehran on renewed Israeli airstrikes—despite US President Donald Trump declaring a ceasefire hours earlier—have added tension. Israeli army radio said the strikes targeted an Iranian radar site near Tehran,...
Fed Doves, Ceasefire Talk Sink Dollar as Risk Appetite Rebuilds
Dollar fell sharply overnight and extended its slide through Tuesday’s Asian session, as traders responded to dovish Fed commentary and easing geopolitical risks. Vice Chair Michelle Bowman signaled she would support a rate cut as soon as July if inflation pressures remain contained and labor market data weakens further....
Dollar Gains on Middle East Tensions, But Broader Markets Hold Steady
Dollar continues to dominate currency markets as geopolitical anxiety keeps providing support. Safe haven demand, sparked by fears of escalating conflict between the US and Iran, has put economic data on the back burner. While Iran has reiterated threats of retaliation after the US bombing of its underground nuclear...
Asia Shakes Off Iran Strike Fears, But Oil Market Still on Alert
Asian markets opened the week lower following the US military strikes on Iranian nuclear sites, marking a dramatic escalation in the Middle East. However, losses were limited and short-lived, with major indexes across the region quickly recovering earlier declines. Oil prices also staged a muted response. While WTI spiked...
Dollar Leads, But Euro’s Structural Story Gains Momentum
Markets were adrift last week as traders grappled with intensifying global risks. The unresolved twin threats of a full-blown trade war and escalating Middle East conflict kept investors on the defensive. Despite some tentative diplomatic efforts, neither front showed meaningful progress, leaving equities vulnerable after months of sustained gains....
Middle East Diplomacy Calms Nerves; Sterling Rises, Loonie Lags
Markets are showing tentative optimism today as signs of potential diplomatic engagement in the Middle East ease investor concerns. European foreign ministers are meeting Iran’s Abbas Araghchi in Geneva—marking the first direct discussions with Western officials since Israel’s strike on Iran last week. This also reflects the highest level...
BoJ Doubts Offsets Strong CPI as Yen Tumbles
Despite an upside surprise in Japan’s core inflation data, Yen extended its decline across the board today. While CPI ex-food rose 3.7% yoy in May, much of the gain was driven by an outsized 100%+ surge in rice prices, which alone contributed nearly half of the index’s increase. This...
Swiss Franc Jumps After Measured SNB Cut, Sterling Recovers after BoE
Swiss Franc rebounded broadly on Thursday after SNB delivered a widely expected 25bps rate cut to 0.00%. Some trade had speculated on either a stronger dovish signal or even surprise action aimed at curbing Franc strength. Instead, SNB refrained from anything bold, and the post-meeting move in Franc reflected...
Dollar Firms as Fed Embraces Caution Over Tariff-Driven Inflation; SNB and BoE Next
Dollar strengthened broadly in the wake of Fed’s policy decision overnight, although upside momentum remains measured. On the one hand, the updated dot plot maintained projection of two rate cuts in 2025. On the other hand, Chair Jerome Powell offered little to reinforce that view. Instead, he bluntly acknowledged...
Markets Tread Water Ahead of Fed Decision, Dots in Focus
Trading remains subdued across the forex markets as participants brace for the dual risk events: Fed’s policy decision and the escalating tensions between Israel and Iran. Currency pairs are largely bounded inside last week’s ranges, with traders opting for caution rather than conviction. Aussie and Kiwi lead this week’s...
Sterling Caught Between Inflation Surprise and Escalating Global Tensions; FOMC Next
Sterling weakened sharply overnight as risk appetite deteriorated on growing fears of military escalation in the Middle East. US President Donald Trump raised the stakes with Iran, issuing a public ultimatum to Supreme Leader Khamenei for “unconditional surrender” after claiming “total control” over Iranian airspace. There are intensified concerns...