Dollar Falls Broadly after Fed, Q2 GDP Next
Dollar drops broadly overnight and stays weak, even though Fed acknowledged that progress has already been made in the economy. Uncertainty in the risk markets is keeping Aussie soft too. But Canadian Dollar is apparently rebounding with resilience in oil prices. Sterling is also strong with Swiss Franc while...
FOMC Review: Economy Moving Toward Inflation and Employment Goals. FOMC Minutes and Jackson Holes in Focus
The Fed sounded cautiously optimistic at the July meeting. The members acknowledged continued improvements in economic activities and that “the economy has made progress toward" the "maximum employment and price stability goals". While leaving all monetary policy measures unchanged, Chair Jerome Powell affirmed the the ongoing discussions over tapering....
Dollar Trying to Recover ahead of FOMC, Market Sentiments Steady
Dollar is trying to recover in early US session but upside is limited so far. Overall market sentiments stabilized as US stocks might have regained footing for another take on new records. Also, traders are turning a little bit more cautious ahead of FOMC statement and press conference. Overall...
Aussie to Stay Weak in Near-term as Lockdown Measures to Weigh On Third Quarter Growth. RBA could Delay Tapering
AUDUSD is prone to be the weakest performer among majors in July. The selloff accelerated 2 weeks ago as the resurgence of coronavirus has triggered lockdown in New South Wales, Victoria and South Australia. In the near-term, sentiment over the currency pair could remain weak as state governments would...
Sterling Firm, Dollar Mixed, as Focus Turns to FOMC
Asian markets continue to trade in risk averse mode today but selling has somewhat decelerated. Commodity currencies remain the weakest ones for the weak on risk-off sentiment, while Aussie is ignoring stronger than expected inflation reading. Yen and Swiss Franc are both strong, but they were outshone by Sterling....
Yen Jumps Again as Markets Turned Risk-Off
Overall markets are in risk-off mode today, started with steep selloff in Hong Kong and China stocks. Nevertheless, losses in Europe are limited, while DOW future is just slightly lower. In the currency markets, commodity currencies are the worst performing ones, as led by New Zealand Dollar. Yen is...
Dollar Soft in Quiet Markets, European Majors in Control
The forex markets are rather quiet in Asia, with major pairs and crosses stuck inside yesterday's tight range. Risk sentiments are mixed. While US indexes extended the record runs overnight, Asian index are struggling, as dragged down by extended selloff in Hong Kong. Overall, European majors are generally firmer...
FOMC Preview – Policy Stance to Stay Intact Despite Surging Inflation
With no updates on median dot plots and economic projections, the focus of this week’s FOMC meeting would be the policy statement and the press conference. Since the June meeting, inflation has continued to accelerate. Market optimism was, however, overshadowed by the spread of Delta variant. Policymakers should likely...
Sterling Rises on Falling Delta Infections, Dollar Softens
Sterling rises broadly today despite dovish comments from a BoE policymaker. Sentiment towards the Pound is likely support by declining trend in delta variant infections. Other European majors are also firm together with Yen. On the other hand. Dollar is currently the weakest one, followed by commodity currencies. Traders...
Swiss Franc and Yen Higher on Selloff in Hong Kong and China
Yen and Swiss Franc are trading mildly higher as the week starts. Heavy selling is seen in stock markets in Hong Kong and China. Yet, Japan came back from holiday with mild gains. Commodity currencies are generally soft, with Aussie leading the way down. Dollar and Euro are mixed...
CFTC Commitments of Traders – Loonie Fell In Line with Crude Oil’s Decline
As suggested in the CFTC Commitments of Traders report in the week ended July 20, NET SHORT of USD index futures gained +931 contracts to 12 188. Speculative long positions added +1 280 contracts while shorts increased +349 contracts. Concerning European currencies, NET LENGTH in EUR futures fell -13...
CFTC Commitments of Traders – Long Bets Trimmed on Crude Oil Futures amidst Profit-Taking
According to the CFTC Commitments of Traders report for the week ended July 20. NET LENGTH for crude oil futures slumped -50 356 contracts to 448 740 for the week. Speculative long position declined -43272 contracts, while shorts rose +7 084 contracts. For refined oil products, NET LENGTH for...
Stocks Closed at Records as Delta Worries Receded, Dollar Index Holding On to Weak Rally
It has been a very volatile week as risk markets were initial knocked down by fear of the infectious delta variant. But sentiment made an about-turn then, even with US indexes closing at record highs. Still, despite late recovery, Australian Dollar ended as the weakest one. Yen was surprisingly...
PBOC Likely to Ease Further, Adding to Renminbi’s Downside Bias
Renminbi has been range-bounded against the US dollar since June. Traders in the Chinese currency has turned cautious after People’s Bank of China (PBOC) surprisingly reduced the reserve requirement ratio earlier this month. The move was contrary to the broad theme of monetary policy normalization in major central banks...
Yen Lower Again as Risk Turned On, Loonie Shrugs Retail Sales
Yen drops broadly today as markets turn back into risk-on mode. It has indeed become the worst performing one for the week. Dollar is also staying to look a bit vulnerable against European majors and commodity currencies. Canadian Dollar is firm and shrug off retail sales data, which shows...
Canadian Dollar Firm as Focus Turns to Retail Sales
Trading in Asian session is relatively subdued today, as some participants are already looking forward to the weekend, after a roller coaster ride. Canadian Dollar is currently the strongest one for the week, helped by rebound in WTI oil price, which is back above 71. However, New Zealand and...
ECB Pledges to Continue Front-load QE Purchases until Inflation Reaches 2% Sustainable
The ECB has updated the forward guidance on the policy rate, reflecting the new inflation target concluded in the strategic review. All monetary policy measures stay unchanged as it strives to achieve the symmetric 2% inflation target: The deposit rate stays at -0.5%, the total Pandemic Emergency Purchase Program...
Euro Steady Against Dollar after ECB, Jobless Claims
Euro is trading steadily in US session after ECB finally revealed it's new forward guidance. Though, the common currency is notably weak against Sterling and commodity currencies. Meanwhile, Dollar and Swiss are also weak, together with Yen, as market sentiments are generally stable. We'd now see if US stocks...
Euro Looks Forward to ECB, Canadian Dollar Rebounds With Oil Price
Dollar and Yen lost their position as the strongest ones as US stocks staged another day of massive rebound overnight, together with treasury yields. On the other hand, Canadian Dollar is currently the best performer for the week, helped by WTI crude oil's reclaim of 70 handle. But Aussie...
US Crude Oil Inventory Surprisingly Increased for First Time in 3 Months
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks rose +4.42 mmb to 1275.28 mmb in the week ended June 16. Crude oil inventory increased, for the first time since mid-April, by +2.11 mmb (consensus: -4.47 mmb) to...