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Risk Sentiment Turned Sour after Hawkish FOMC Minutes

More hawkish than expected FOMC minutes sent US stocks lower overnight, and the negative sentiment carries on in Asian session. Australian Dollar leads commodity currencies sharply lower. Yen recovers but buying is weak on strong treasury yields. Dollar is also mildly firmer together with Euro. Technically, we'll look at some...

Dollar Shrugs Strong ADP Job Data, Markets Mixed

Markets turned mixed as traders await FOMC minutes. The much stronger than expected US private job data provides little inspiration to the markets. Dollar pares back some gains but remain the second strongest for the week next to Sterling. Yen is also recovering but remains the worst performing, followed...

Markets Take a Breather ahead of FOMC Minutes, Sterling Strong, Yen Weak

The forex markets turn quiet in Asian session today. While DOW surged to new record high overnight, S&P 500 and NASDAQ closed slower. Asian markets are also mixed. Investors are holding their bets for now, awaiting FOMC minutes and, more importantly, US non-farm payrolls later in the week. For...

Full Risk-On Markets Continues, Yen Continues Downside Acceleration

Global financial markets are in full risk-on mode today. Major European indexes are trading higher while US futures indicates that record run is continuing. In the currency markets, Yen's steep selloff continues and looks unstoppable. Dollar is performing well as supported by rally in treasury yields. Euro, on the...

Yen Dives on Surging Yields, Dollar Strong

Yen selloff is the main theme in the Asian markets today, in particular as USD/JPY breaks out on the upside with acceleration. The move was fueled by strong rally in US treasury yields overnight, as well as rally in Nikkei and benchmark JGB yield. Dollar is currently the strongest...

Yen Weakness Still the Main Theme as US Stocks Might Extend Record Run

Overall outlook in the markets are unchanged, with US futures pointing to slightly higher open. DOW and S&P 500 could continue their record runs. Selloff in Yen remains the main theme while Sterling is strong together with Aussie and Kiwi. Euro and Dollar are both soft and bounded in...

Yen Selloff Continues as DOW Hit Record, Yields Jumped

Selloff in Yen continued as DOW was pushed to new record by risk-on sentiment, while US benchmark treasury yield also jumped. Dollar is also under some pressure together with Canadian and Euro. On the other hand, Sterling continues to be the outperformer, leading Aussie in the race. With easing...

US Crude Oil and Petroleum Inventory Fell Across the Board

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks slumped -1891 mmb to 1184.59 mmb in the week ended December 24. Crude oil inventory dropped -3.58 mmb to 420 mmb, compared with consensus of a +3.09 mmb increase....

CFTC Commitments of Traders – Net Short of British Pound Futures Increased Further Despite Price Rebound

As suggested in the CFTC Commitments of Traders report in the week ended December 21, NET LENGTH of USD index futures gained +3 874 contracts to 35 115. Speculative long positions rose +3 959 contracts but shorts added +85 contracts. NET SHORT of EUR futures dropped -1 717 contracts...

CFTC Commitments of Traders – Long Bets of Crude Oil Futures Reduced on Profit-Taking

According to the CFTC Commitments of Traders report for the week ended December 21, NET LENGTH of crude oil futures sank -6 882 contracts to 340 255. Speculative longs dropped -4 957 contracts while shorts added +1 925 contracts. For refined oil products, NET LENGTH for heating oil added...

Sterling Firm, Yen Weak, Gold Tumbles in Holiday Mood

The markets are staying in holiday mood today, with little news flow and no important data release. There is nothing to stop Yen's decline. But as risk sentiments turned steady, commodity currencies are paring some gains. Instead, Sterling is outshining others and it's trading mildly higher broadly. Dollar is...

Yen Stays Weak as Risk Rally Takes a Breather

Risk-on sentiment is somewhat taking a breather as S&P closed slightly lower after making new high. But Yen remains overwhelmingly the worst performing one for the week, followed by Kiwi and then Euro. On the other hand, Sterling is currently the strongest one together with Swiss Franc, thanks additional...

Aussie Surges on Risk-On Sentiments, Euro Heading Lower

Australian Dollar rides on solid risk-on sentiment and rallies broadly today. US futures point to higher open while S&P 500 would extend record run. Swiss Franc is surprisingly firm too but it's helped by selloff against Euro, together with Sterling. Dollar is currently the worst performing, together with Canadian...

Yen Broadly Lower as S&P 500 Makes New Record

Yen is trading broadly lower this week, and remain soft in Asian session, following the rally in US stocks overnight. Dollar is also weak in risk-on markets, while Euro is not far away. On the other hand, Sterling is so far the strongest one, followed by Aussie. The economic...

Sterling Skyrockets, Dollar Shrugs PCE Inflation

Sterling's rally picks up some strong momentum in pre-holiday trading. Meanwhile, overall steady to risk-on sentiment is also lifting Aussie and other commodity currencies. On the other hand, Euro is under tremendous pressure, thanks to selloff against the Pound. Dollar, Yen and Swiss Franc are also soft, with the...

Dollar and Yen Down But Not Out (Yet) in Pre-Holiday Trading

Yen and Dollar are currently the weakest ones for the week, but both are bounded inside last week's range against most other currencies. The development is in line with the stock markets, where major US indexes closed higher overnight, but stayed in range too. Australian and New Zealand Dollar...

Sterling Surges, Loonie Dives in Quiet Markets

Sterling and Euro are trading broadly higher today, together with Aussie. On the other hand, Yen and Dollar are both under some selling pressure. Rebound in Europe yield is a factor in driving the markets. We'll see if there is further rally in stocks before holidays that could push...

Yen Weakens as Stocks and Oil Rebound

Yen dropped broadly overnight as US stocks rebounded and stays soft in Asian session. Canadian Dollar also pare back some losses as WTI crude oil recovered back above 70 handle. But overall markets are generally mixed in holiday mood. Euro is currently the strongest for the week, followed by...

Risk Sentiment Flip-Flops, Canadian Dollar Shrugs Retail Sales

Risk sentiment continues to flip-flop in pre-holiday markets. Major European indexes and US futures are trading slightly higher. Swiss Franc, Yen and Dollar are all trading generally lower, while Kiwi and Aussie are trading higher with Sterling. Canadian Dollar appears to be getting little support from better than expected...

PBOC Cut Policy Rate as Economic Recovery Hampered by Pandemic and Power Shortage

China is going against the global tide of normalization of monetary policy. The PBOC announced to cut the one-year loan prime rate (LPR) by -5 bps to 3.8%, first time April 2020. This, together with the reduction in RRR and increase RRR on foreign currencies earlier this month, indicates...