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...
Yen Mildly Lower as Asia Rebounds, Canadian Dollar in Weak Recovery
Yen trades mildly lower today, as Asian markets recover despite the steep fall in US overnight. Swiss Franc and Dollar are also soft. On the other hand, commodity currencies are all recovering mildly, but momentum is weak. Overall, the forex markets are still hesitating to break out from recent...
Risk Aversion Continues, Canadian Dollar Follows Oil Lower
Commodity currencies are under broad-based pressure today, as markets are trading in risk-off mode on the spread of Omicron. Canadian Dollar is leading the way lower as WTI oil tumbles below 70. But Euro and Swiss Franc are currently the main beneficiaries, followed by Yen. Dollar and Sterling are...
Asia Starts With Risk-off Sentiment, Yen Crosses Take a Dive
A holiday shortened week starts will risk-off sentiment. Selloff in notable in Japan with Nikkei back below 28k handle, while HK HSI also hits the lowest level this year. In the currency markets, Yen is currently the strongest one for today, followed by Euro and Swiss Franc. On the...
CFTC Commitments of Traders – EUR and GBP Failed to Gain Strength after Policy Announcements
As suggested in the CFTC Commitments of Traders report in the week ended December 14, NET LENGTH of USD index futures fell -3 624 contracts to 31 241. Speculative long positions slipped -795 contracts but shorts gained +2 829 contracts. NET SHORT of EUR futures rose +3 580 contracts...
CFTC Commitments of Traders – Rally in Gold Price should Lead to Rebound in Net Long Next Week
According to the CFTC Commitments of Traders report for the week ended December 14, NET LENGTH of crude oil futures slumped -20 095 contracts to 347 137. Speculative longs declined -9 352 contracts while shorts gained +10 743 contracts. For refined oil products, NET LENGTH for heating oil dropped...