Yen Recovers as Markets Turn Cautious on BoJ Signals and Asia Risks
Risk sentiment softened as markets reopened after the holiday break, with investors adopting a more defensive posture. Asian equities drifted lower, and European markets struggled to gain traction at the open, reflecting subdued conviction.
One immediate dampener came from the Summary of Opinions released by the BoJ. The document reinforced...
Dollar Struggles to Recover as Markets Drift Toward Year-End, Aussie and Kiwi Stay in Front
Dollar found a modest bid early in the U.S. session after weekly jobless claims came in better than expected, offering a brief reminder that U.S. labor market conditions remain relatively resilient. The reaction, however, was restrained, and the greenback failed to generate meaningful follow-through. That muted response highlights the...
Yen Finds Breathing Room From Verbal Intervention, But Fiscal Risk Narrative Deepens
Yen rebounded broadly today, but the move appears driven more by pre-holiday profit-taking than a genuine shift in trend. Position squaring into year-end has offered temporary relief after recent weakness, yet price action lacks the conviction typically associated with durable reversals. There was also some support from stepped-up verbal...
Yen Finds Temporary Footing on Verbal Intervention, Precious Metals Break Away
Global markets opened the final full trading week of 2025 on a mixed footing, with price action shaped more by thin holiday liquidity than fresh conviction. Asian equities leaned modestly higher, led by a strong surge in Japanese stocks after Friday’s firm close in the U.S., where technology shares...
Dollar Mirrors Market Doubt, Sterling Saved, Yen Sinks
The past week delivered no shortage of surprises, yet markets ended it with remarkably little conviction. Key macro data and central bank decisions challenged prevailing assumptions, but follow-through across major assets proved elusive.
US economic releases hinted at a faster cooling in both employment and inflation. Under normal circumstances, that...
Yen Selling Persists as BoJ Normalization Seen as Slow and Shallow
Yen selling remains the dominant theme heading into the weekend, with the currency staying as the weakest performer. The renewed slide comes despite the BOJ lifting interest rates to their highest level since 1999. The problem for Yen bulls is not the direction of policy, but the pace. BoJ...
Yen Slides After BoJ Hike as Markets Sell the News, Dollar Rebounds on CPI Doubts
Yen weakened broadly today despite the BoJ delivering a widely expected 25bps rate hike. The move pushed 10-year JGB yields above the psychologically important 2% level for the first time since 1999, but higher yields failed to translate into currency support.
Part of the reaction reflects a classic sell-on-news dynamic....
Hawkish BoE Cut Lifts Sterling, Dollar Weakens on Soft CPI
Sterling rallied broadly after the BoE delivered a widely expected rate cut that came with a distinctly hawkish undertone. The 5–4 vote, with four members dissenting in favor of holding rates steady, was a surprise and prompted a reassessment of how smooth the easing path ahead will be.
Fundamentally, the...
Risk-Off Undercurrent Builds as BoE, ECB, CPI Crowd the Session
A volatile trading environment looks all but guaranteed as markets face a rare clustering of major event risks today. BoE and ECB rate decisions headline the European session, while US CPI later on is likely to determine whether recent risk jitters deepen or stabilize.
In FX, much attention centers on...
Sterling Avoids Heavy Selling So Far, Silver Power Continues
Sterling continues to underperform today, though losses remain contained. The lack of aggressive selling suggests markets are already well positioned for near-term policy easing and are now grappling with uncertainty further along the curve rather than reacting to fresh surprises.
This week’s string of weaker UK employment data has erased...
Sterling Slips as Faster UK Disinflation Firms Up BoE Cut Case
Sterling weakened further today after UK inflation data surprised further to the downside, reinforcing expectations that price pressures are easing faster than previously thought. The softer CPI print extended losses in Sterling following a weak run of domestic data this week.
After inflation peaked at a lower-than-expected 3.8% earlier in...
NFP Shock Slams Dollar, March Fed Cut Now More Likely Than Not
Dollar came under broad pressure in early US trade after delayed employment data confirmed a deeper-than-expected loss of momentum in the labor market. The October payrolls collapse was the key shock. A steep contraction marked the third negative print in six months, a development that few had anticipated. To...
UK Data Mixed, Dollar Awaits Delayed NFP for Direction
Sterling is steady in early European trading after UK labor data reinforced a familiar theme of softening employment alongside stubborn wage pressures. Job losses continued, while pay growth remained elevated. The data is unlikely to derail the BoE’s widely expected 25bps rate cut to 3.75% later this week.
While markets...
Loonie Steady as Inflation Confirms BoC Comfort, Risk Mood Mixed
Canadian Dollar is little changed in early US trade, reflecting a broadly balanced market backdrop. The latest inflation figures offered reassurance rather than surprise, keeping the Loonie anchored as investors focus on broader risk and geopolitical developments.
Canada’s CPI remained steady at 2.2% close to BoC's 2% target. The absence...
Yen Jumps on China Data Shock as BoJ Hike Bets Firm Up
Yen rallied broadly during the Asian session as weaker-than-expected Chinese data undermined regional risk sentiment. Retail sales disappointed sharply, reinforcing doubts about the strength of China’s domestic recovery and prompting a defensive tilt across FX markets.
Hopes that poor data would trigger fresh stimulus from Beijing failed to gain traction....
Dollar Sags, But Warsh Fed Risk May Flip the Script
Dollar ended last week broadly lower, outperforming only the even more beleaguered Yen. That said, the technical deterioration in Dollar is still measured rather than decisive. For now, Dollar's selling momentum reflects hesitation more than capitulation.
Two key forces are shaping this fragile balance. The first is indecisive risk sentiment,...
Dollar Attempts Late-Week Recovery, Fed Dissent Fails to Shift Outlook
Dollar edged modestly higher into the final US session of the week, though follow-through remains limited. The rebound looks more like position adjustment than conviction, with markets reluctant to chase the greenback ahead of next week’s key data.
Attention briefly turned to fresh remarks from two Fed officials who dissented...
Sterling Softens After GDP Miss; Dollar Remains Under Pressure
Sterling edged lower after the UK GDP release disappointed again, a adding to a run of soft growth signals and left the Pound mildly on the defensive into European session. The pre-Budget weakness is strengthening the case for the BoE to resume rate cuts at next week’s meeting. While...
Dollar Extends Slide After Jobless Claims Jump; SNB Lift Helps Franc Outperform
Dollar came under renewed selling pressure today after a sharp upside surprise in US weekly jobless claims. The surge in initial claims reminded investors that last week’s notably low reading was likely a statistical outlier rather than a sign of renewed labor-market strength. While the data does not yet...
Dollar Falls as Markets Reject “Hawkish Cut” Narrative; Aussie Falls Hard After Labour Miss
US stocks advanced solidly overnight after the Fed’s expected 25bps rate cut was greeted warmly by markets. Even though some economists labeled the decision a “hawkish cut,” the risk-on response in equities and the sell in Dollar suggested investors heard nothing hawkish enough to derail near-term sentiment.
The three-way vote...