Dollar’s Slide Deepens, Yen Bolstered by Wage Optimism, Euro Awaits ECB
Dollar fell sharply overnight and the broad-based decline extended into Asian session today. Some analysts attributed this selloff to Fed Chair Jerome Powell's commentary during his Congressional testimony. Powell's mention of needing "a little bit more data" before contemplating rate cuts has ignited a wave of speculation among investors...
Dollar and Yields Downturn Continues, Fed Chair Powell Offers No Respite
Dollar is trading broadly lower as markets enter into US session, with minimal backing from Fed Chair Jerome Powell's prepared remarks for his Congressional testimony. Instead, the currency's weakest is accentuated by extended drop in treasury yields and slightly disappointing ADP private job data. Amidst this backdrop, Swiss Franc...
Record-Breaking Gold Amid Falling US Yields, Eyes Set on Fed Powell and BoC
Dollar faced some selling pressure overnight, as dragged down by the sharp decline in the 10-year treasury yield. Despite this, the impact on the greenback was relatively contained, thanks to significant pullbacks in major stock indices, which provided a cushion against more substantial losses. Today's spotlight turns to Fed...
Aussie Falters While Dollar Sees Slight Uptick
The picture is pretty much the same through Asian and early part of European session, with the Australian and New Zealand Dollars, alongside the Canadian Dollar, persisting as the day's underperformers. Swiss Franc has also found itself under pressure, particularly against its European counterparts, aligning with the commodity currencies...
Nikkei’s Resilience Contrasts With Hong Kong’s Setback, US ISM Services watched
Market sentiment was clearly mixed in Asian session today, highlighted by Nikkei's remarkable resilience and Hong Kong's stocks' downturn. The day commenced with Nikkei momentarily succumbing to profit taking pressure, dropping below 40k mark after Tokyo's CPI was reported to have risen to 2.5%. This initial dip, however, was...
Swiss Franc Pressured after After Fleeting Bounce; Bitcoin Surges Above 65k
Swiss Franc bounced briefly earlier today, following release of slightly stronger than expected Swiss CPI data, only to see those gains quickly dissipate. With inflation levels persistently below SNB target, market consensus continues to lean towards an interest rate cut within the year, with September eyed as the probable...
Nikkei Breaks 40K as Japan’s Capital Spending Fuels Market Optimism
Nikkei surges through 40k mark for the first time ever, standing out in an otherwise subdued Asian session. This index was propelled by Japan's unexpectedly robust capital spending report for Q4, which significantly bolstered investor confidence. While the surge in capital expenditure may not directly sway BoJ's immediate monetary...
Yen Rises on BoJ Rate Speculation, But Gains Muted
Yen ended as the best performer last week amidst intensifying discussions around BoC rate hike, spurred by comments from the central bank's officials. The anticipation of policy tightening propelled Yen forward, although gains were tempered by uncertainties surrounding the timing of the first move, and the path of subsequent...
Eurozone Inflation Surprises Support Euro, ECB’s Holzmann Urges Patience on Policy
Euro rises broadly today even though gains are so far limited. The common currency is lifted by stronger than anticipated Eurozone inflation figures, which suggests that the path to disinflation may be encountering obstacles. This development could providing ammunition to hawks within the ECB Governing Council, to advocate for...
Markets Respond to BoJ’s Dual Tone, Yen Pares Gains While Nikkei Soars
Yen reverses some of yesterday's gains after cautious comments from BoJ Governor Kazuo Ueda, which highlighted that Japan is "not there yet" to reach the long-sought-after sustainable inflation rate of 2%. Ueda's perspective starkly contrasted with the more hawkish tones of Board Member Hajime Takata, who has advocated for...
Dollar Softens Mildly as Inflation Matches Forecasts, Yen Rally Loses Steam
US stock futures bounce while treasury yields weaken following release of January's PCE inflation data, which showed slowdown in both headline and core inflation rates as anticipated. This development provided some relief to investors, who were concerned that disinflation progress might have come to a halt. Fed should remain...
Hawkish BoJ Fuels Yen Surge, Dollar Awaits Crucial PCE Inflation Insights
Japanese Yen rallied broadly in Asian session, energized by hawkish remarks of a BoJ official. These remarks served as a potent reminder to the markets of two critical points: Firstly, BoJ is poised to hike interest rates, buoyed by positive developments in wage negotiations; secondly, while April is viewed...
Dollar and Safe Havens Surge, Bitcoin Soars Past 60K
Dollar, Yen, and Swiss Franc emerge as the predominant winners as markets enter into US session, amidst a backdrop of mild risk-off sentiment. Nevertheless, momentum of these safe-haven currencies remains relatively tempered, holding off major range breakouts across the most traded currency pairs. Traders, particularly those focusing on Dollar,...
Kiwi Dives after RBNZ Hold, Dollar Staging a Comeback
New Zealand Dollar fell significantly in today's Asian session, establishing itself as the day's most underperforming currency at this point. The decline was sparked by RBNZ's decision to maintain interest rate at 5.50%, a move that dashed the hopes of a small segment of the market that had anticipated...
Yen Maintain Gains But Faces Momentum Hurdle, Dollar Indifferent to Weak Durable Goods
As the market transitions into early US session, Yen remains the best performer of the day, riding on Japan's stronger-than-anticipated CPI data. Despite the positive undercurrent, Yen has yet to find decisive buying momentum, suggesting that most traders are still on the sideline. Meanwhile, Australian Dollar trails as the...
Yen Inches Upward as Japan’s CPI Fuels March BoJ Hike Talks
Japanese Yen found modest strength in Asian session today, lifted by stronger than expected consumer inflation data from Japan. At the same time, two-year yield climbed to its highest point since 2011 while Nikkei is steady. The data intensified speculations around BoJ's move to abandon its negative interest rate...
Euro Gains Traction as Markets Eye Japan CPI, Commodity Currencies Lag
The global financial markets are overall very quiet today, marked by a noticeable absence of significant economic data releases or impactful news. Euro emerges as the frontrunner, leading European majors higher, while Yen sees a slight dip in anticipation of Japan's CPI data set to be released tomorrow. Commodity...
Caution Sets In Ahead of RBNZ, Global Inflation Data to Shake Markets
New Zealand Dollar weakens broadly in Asian session today, reflecting market caution ahead the RBNZ decision later this week, on concerns of less hawkish than expected outcome. The selloff in Kiwi is also dragging down Australian Dollar some what, while Yen and Dollar found some room to recover from...
Continued Euphoria Pushes Global Markets to New Records
The past week marked a significant milestone in global financial markets, as major indices like DOW, S&P 500, DAX, CAC, and even Nikkei all reached new record highs, buoyed by the widespread euphoria surrounding artificial intelligence related sectors. This wave of optimism to eclipsed the recalibrated expectations that some...
Yen and Dollar in Weak Positions as Traders Watch US Markets’ Record Rally
As US session gets underway, Yen and Dollar remain the weakest links in the currency markets, reflecting a broader trend of risk appetite among investors. All eyes are now on whether the US stock market can extend its record-setting run. In particular, there is anticipation that NASDAQ could catch...