Selling Turns to Euro and Swiss Franc as Risk-on Rally Returns
Commodity currencies came back to live entering into US session, with help from broad based rally in European indexes and US futures. Canadian Dollar is also lifted as WTI oil price recaptures 70 handle. Dollar turned mixed for now as selling turns to Swiss Franc, Euro and Yen. With...
EUR/USD Breaks 1.179 Support as Dollar Rebound Continues
Dollar rebound continues in Asian session today and trades generally high. Weakness in more notable in Aussie and Euro, as both turn soft in crosses. Overall risk sentiment is slightly negative, with particular deep selloff in Hong Kong stocks, but Nikkei remains resilient. The economic calendar is very light...
CFTC Commitments of Traders – Bets on DXY Index Futures and EUR Futures Declined in Both Sides
As suggested in the CFTC Commitments of Traders report in the week ended September 7, NET SHORT of USD index futures added +775 contracts to 21 465. Trades continued to drop on both sides with speculative long positions down -2 803 contracts while speculative shorts down -3 578. Concerning...
CFTC Commitments of Traders – Gold Price Pressured on Hopes of Rising Yields
According to the CFTC Commitments of Traders report for the week ended September 7, Trades on crude oil futures fell on both sides. Speculative long position declined -9 065 contracts, while shorts dropped -1 695 contracts, sending NET LENGTH lower (down -7 370 contracts) to 349 158 contracts for...
Dollar Rebounded as DOW’s Selloff Posts a Warning to Risk Sentiment
Dollar ended as the strongest one last week, with some held from the late selloff in US stocks. Yen was the second strongest on risk aversion while Swiss Franc was not too far away. Commodity currencies, on the other hand, ended generally lower. Traders ignored the dovish tapering of...
CAD Rebounds on Strong Job Data, USD Turning Weaker
Canadian Dollar rebound strongly in early US session after stronger than expected job data. Commodity currencies are also generally firm with European stocks and US futures, followed by Sterling. On the other hand, Yen, Swiss Franc and Dollar are turning softer, but Euro is not too far away. The...
Focuses Turn to UK GDP and Canada Jobs for Guidance
Overall, the forex markets are rather mixed as we're heading towards the weekend. Euro is staying weak in European crosses, but selling slowed against Dollar and Yen. Meanwhile, commodity currencies are trading mildly higher, but remain the worst performers for the week. Dollar turned weaker against Swiss Franc and...
Crude Oil Price Declined as US Inventory Fell Less than Expected
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks sank -10.39 mmb to 1233.43 mmb in the week ended September 3. Crude oil inventory declined for a 8 consecutive week, down -1.53 mmb (consensus: -4.61 mmb) to 423.87...
ECB to Slow Asset Purchases via PEPP. Growth and Inflation Outlook Upgraded
Two important messages delivered at the ECB meetings are: 1) the end of the front-loading of PEPP asset purchases and 2) acknowledgement of a more persistent inflation pressure. The policy rates were all kept unchanged with the main refi rate, the marginal lending rate and the deposit rate staying...
Euro Tumbles in Crosses, No Help from ECB Re-calibration
Euro tumbles notably against European majors and Yen today, and ECB's re-calibration of PEPP purchases provide no support. But Dollar is seen as equally weak. Sterling is currently the star performer for today, followed by Swiss Franc and Yen. Commodity currencies are mixed. Focuses will now turn back to...
Euro Losing Momentum ahead of BoC, Dollar Recovering Further
Commodity currencies are trading generally lower in Asia today, with pull back in Japanese stocks in the background. Canadian Dollar is also soft after BoC's rate decision overnight. Dollar, Yen and Swiss Franc are trading mildly firmer, extending this week's rebound. Euro is following closely, but momentum is starting...
BOC Stood Pat but Delivered Cautiously Optimistic Message
The loonie recovered modestly after the BOC meeting. As widely expected, policymakers left the overnight rate unchanged at 0.25% and QE purchases at CAD 2B/ week. Yet, they remained cautiously optimistic over the medium term economic outlook, despite disappointing GDP data in 2Q21 and July. We expect the central...
Euro and Swiss Franc Soften in Mixed Markets, Canadian Also Weak
Euro and Swiss Franc weaken mildly in mixed markets today. New Zealand Dollar firms up together with Yen and Dollar. Meanwhile, Canadian Dollar is also soft, awaiting BoC policy decision. Major European indices are trading in red, but losses are limited. US futures also point to slightly lower open....
Canadian Dollar Turns Weaker ahead of BoC, Dollar Extending Rebound
Dollar's recovered continued in Asian session today, partly supported by hawkish comments from a Fed official. Mixed sentiments in the stock markets also stabilized the greenback. Instead, commodity currencies continued to reverse some gains. Main focus today will turn to BoC policy decision but that would likely be a...
Sterling Down as Risk Sentiment Turns Weaker, Dollar Trying to Rebound
Risk sentiment turns a bit weaker today in the stock markets. But benchmark European and US yields are staging a strong rally. In the currency markets, Aussie is sold off is in delayed reaction to RBA's dovish tapering, but Canadian is follow closely with selloff in oil price. Sterling...
BOC Preview – QE Tapering to Pause as Economy Contracted in 2Q21
Torn between disappointing economic activities but rising inflation, higher vaccination rate but worsening Delta outbreak, and a federal election just 12 days after this week’s meeting, the BOC will likely stand on the sideline this month. Policymakers will keep its weekly asset purchases unchanged at CAD 2B/ week and...
RBA Adopts Dovish Tapering as Delta Outbreak Expected to Hurt Growth in 3Q
At the September meeting, the RBA decided to reduce QE asset purchases to AUD 4B/week, from ADU 5B/ week previously. It also left the cash rate, as well as the yield target on the April 2024 bond, unchanged at 0.1%. The central bank did include a dovish twist, signaling...
Aussie Shrugs RBA, Dollar Recovery Losing Steam
Trading the the forex markets remain rather subdued in Asian session. Aussie basically shrugs off RBA's decision to taper, but extend QE. Dollar is trading slightly softer, as yesterday's recovery lost momentum. European majors are currently the slightly firmer ones. But overall, traders are staying in wait-and-see mode. Risk...
ECB Preview – Time to Lower Asset Purchases?
The pace of asset purchases in the Pandemic Emergency Purchase Program (PEPP) in 4Q21 is the focus of this week’s ECB meeting. Following hawkish comments from some council members, especially chief economist Philiip Lane, hopes that an announcement related to reduction in purchases would be made at the upcoming...
Dollar Paring Some Losses, Aussie Retreats Ahead of RBA
Trading in the currency market is rather subdued today and markets will stay quiet with US and Canada on holiday. Dollar is paring some of last week's large losses but upside momentum is weak. On the other hand, Australia Dollar is turning slightly weaker as tomorrow's RBA policy decision...