Euro Awaits ECB Rate Hike, Dollar Staying Weak
Dollar remains broadly softer, and stays as the worst performer for the week. It's partly dragged down by the pull back in treasury yields, with 10-year yield breaching 4% handle overnight. Canadian Dollar is the next weakest, after the smaller than expected 50bps rate hike by BoC. On the...
Dollar Selling Takes Off, EUR/USD Back Above Parity
Dollar's decline takes off today on talks that poor economic data would prompt Fed to slow down the tightening pace sooner than earlier expected. Treasury yields also tumbled, adding some more weight to the greenback. Yet, it should be noted that inflation remains Fed's biggest worry. There is little...
GBP Firm, USD Down, CAD Mixed ahead of BoC
Dollar was sold off overnight as stock markets extended rebound. But there is no clear downside breakout in the greenback yet. For now, Sterling is the strongest one for the week as political situation in the UK appears to have stabilized. Euro is the second best as helped by...
Sterling a Touch Firmer after Sunak Becomes Third UK PM in Two Months
It's an extremely slow day in the markets. Sterling appears to be a touch stronger after Rishi Sunak finally become the third UK Prime Minister in Two months, accepting King Charles's request to form a government. Meanwhile, Swiss Franc is slightly on the softer side. But overall, most major...
Quiet Markets Await Germany Ifo and US Consumer Confidence
The Asian markets are generally quiet today, with the expectation in China. The Shanghai SSE reversed earlier losses and surged before the break, with talks of buying by the "national team". But Yuan's decline continued and hit another record low. In the forex markets, most major pairs and crosses...
Euro and Sterling Shrug Poor PMIs, Overall Sentiment Mixed
Overall market sentiment is mixed today. European stocks are trading up together with US futures. But heavy selling was seen in Hong Kong and China stocks earlier. Commodity currencies appear to be weighed down by the negative side of the picture, while Dollar is firmer with European majors. Sterling...
Sterling Trades Higher as BoJo Quits Leadership Race; Three Central Banks to Meet This Week
Sterling is the better performer in Asian session today. It's supported by news that former Prime Minister Boris Johnson withdrew from party leadership contest on Sunday, even with enough support to make the final ballot. The development left business friendly Rishi Sunak, a former Finance Minister, as a favorite...
Yen Rebounded after Japan Played Intervention Game Beautifully
It's a week of drama. In the UK, Liz Truss became the shortest-serving Prime Minister as political chaos continued, and the race for the next PM started immediately. In the US, stocks surged on Friday on talks that Fed could start slowing its rate hikes in December. Meanwhile, in...
USD/JPY Skyrockets With Japan Absent From Intervention
Dollar surges broadly today as risk sentiment turns sour again while treasury yields continue to march higher. Yen is apparently weak, with Japan absent from intervention despite the steep decline. But Sterling and Swiss Franc are worse, Commodity currencies are also turning south, with Kiwi on the weaker side....
Dollar Standing Above 150 Against Yen, 10-Yr Yield Above 4.2
Yen remains the biggest loser for the week even though Japan has stepped up with the rhetorics against "speculations". Dollar is standing above 150 level against Yen for now, without clear sign of actual intervention. The pair is supported by 10-year yield which broke above 5.2 handle. Nevertheless, thanks...
USD/JPY’s Battle for 150 Still On
Dollar softens slightly today after failing to have a decisive rally against Yen. Nevertheless, the battle for 150 is still on. Sterling is lifted slightly by news of UK Prime Minister Liz Truss's resignation, but there is no follow through buying. Commodity currencies are trading mildly higher as risk...
Dollar Rising on Risk-off Sentiment and Stronger Yields
Risk-off sentiment and rising treasury yields are giving Dollar some support again. The greenback's strengthen is more apparent against commodity currencies, which is reasonable. European majors are mixed for now, with Euro a touch more resilient. Meanwhile, Yen is indeed trying to recover against everyone but Dollar. There is...
USD/JPY Marching to 150 as Dollar Rises With Yields
Dollar rises broadly today, with help from bonds as 10-year yield tops 4.1% in pre-market. Canadian Dollar is also slightly firmer after CPI report. Other parts of the markets are mixed. Yen is dropping towards 150 with Dollar, but recovers elsewhere. Swiss Franc is weakening against both Euro and...
Yen Selloff Slowing Slightly after Intervention
Yen remains the worst performer for the week but selling appears to have slowed after Japan's intervention yesterday. Dollar is following as next weakest, as risk sentiment stabilized. Also, Dollar bulls are clearly on guard against sudden volatility in Yen. Australian Dollar is the strongest one together with New...
USD/JPY Holding Firm Despite Japan Intervention
Japan appeared to have intervene in the currency markets again today. But USD/JPY is holding its head up, staying resilient around 32-year high. Both Dollar and Yen are among the worst as the financial markets are basically trading with solid risk-on sentiment. New Zealand and Australian Dollar ride on...
Kiwi Rebounds On CPI, Dollar and Yen Weak on Risk Sentiment
Commodity currencies are generally stronger today following the rebound in risk markets. New Zealand Dollar is leading the way as additionally supported by stronger than expected consumer inflation reading. There are some talks that RBNZ would opt for a larger than before hike at the upcoming meeting. Dollar, Euro,...
Sterling Supported by UK Tax Measures Reversal, Yen Weakness Continues
Sterling is trading as the strongest one for today so far, even though there is not clear follow through buying except versus Yen. The Pound is supported by UK Finance Minister Jeremy Hunt's decision that the government will reverse "almost all" the tax measures in the Growth Plan announced...
Dollar Loses Momentum in Quiet Trading, Except Versus Yen
The forex markets are rather steady in quiet Asian session today. Dollar is paring some gains while Euro and Yen are soft too. Sterling is leading the way higher, followed by commodity currencies. But overall, almost all major pairs and crosses are bounded inside Friday's range. The economic calendar...
USD/JPY Closing in 150 as Traders Pricing in Two More 75bps Fed Hike This Year
There were so many important headlines last week. USD/JPY surged to new 32-year high with support from stronger than expected CPI, and as 10-year yield broke 4% handle. Japan maintained their stance that they will act resolutely on market volatility, without actual intervention. DOW staged a historic 1500pts U-turn...
Dollar Makes New 32-yr High Against Yen, Will Japan Intervene?
Dollar regains some growth today, and even rises to new 32-year high against Yen. Momentum is somewhat weak, however, as traders are guarding against intervention by Japan. Meanwhile, markets are mixed elsewhere. Sterling dips after UK Finance Minister Kwasi Kwarteng announced his resignation ahead of Prime Minister Liz Truss's press...