Yen Stronger With Aussie and Kiwi in Mixed Trading
The financial markets continue to be relatively mixed entering into US session. Aussie and Kiwi are currently the strongest one, together with Yen. On the other hand, Dollar and Euro are the weakest ones, together with Loonie. European indexes are trading mildly higher but upside is limited. Gold and...
BOC Preview – Policymakers to Keep Upbeat Tone Despite Softening Growth
We expect the BOC to maintain its relatively hawkish outlook at this week’s meeting. Although economic data released since April have softened slightly, strong oil prices and the positive vaccination progress should allow the members to stay optimistic about the recovery outlook. They would also maintain the monetary policy...
Dollar Consolidating Losses, But No Momentum for Recovery
Markets are mixed in a quiet Asian session today, with little reaction to China's trade data. Dollar is consolidating last week's late lost but there is no apparent momentum for a rebound. On the other hand, Yen is mildly higher on sluggish stock markets in the region. Gold is...
CFTC Commitments of Traders – Traders Continued to Bet Higher Loonie as Driven by Crude Oil’s Rally
As suggested in the CFTC Commitments of Traders report in the week ended June 1, NET LENGTH of USD index futures added +183 contracts to 2 963. Speculative long positions rose +2 724 contracts while shorts increased +2541 contracts. Concerning European currencies, NET LENGTH in EUR futures gained +5...
CFTC Commitments of Traders – Bets on Higher Crude Oil Prices Jumped Last
According to the CFTC Commitments of Traders report for the week ended June 1, NET LENGTH for crude oil futures jumped +15 807 contracts to 491 297 for the week. Speculative long position rose +13 067 contracts, while shorts dropped -2 740 contracts. For refined oil products, NET LENGTH...
Aussie Ready to Turn Around after Late Rebound?
Dollar was in a pole position to end as the strong one but was the unfortunately knocked down by solid, but disappointing non-farm payroll report. The data did nothing to alter the base position of Fed officials that, it's only time to talk about talking about tapering for now....
Dollar Fades after Another NFP Miss, US Futures Up
Dollar drops notably in early US session after another NFP miss. It has now reversed all of yesterday's late gains. Canadian Dollar also turns softer after weaker than expectation job data. On the other hand, other commodity currencies strengthen mildly. In other markets, US future turn up on expectation...
Dollar Rebounded Strongly and Broadly as Focus Turns to Non-Farm Payrolls
Dollar rose broadly overnight, following solid job and services data, and remains firm in Asian session. Nevertheless, the real test lies in today's non-farm payroll report. As of now, Yen is the second strongest for the week, following the green back. Canadian Dollar is the third strongest, and will...
Decline in US Crude Inventory More than Doubled Consensus
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks added +1.92 mmb to 1277.85 mmb in the week ended May 28. Crude oil inventory sank -5.08 mmb (consensus: -2.44 mmb) to 479.27 mmb. Stockpile decreased in 3 out...
Dollar Mildly Higher after Strong ADP Jobs, But Upside Limited
Dollar trades slightly higher in early US session on much better than expected ADP private job data. Though, upside is so far limited, as traders remain cautious ahead of tomorrow's non-farm payrolls report. Sterling is following as the second strongest for today, then Yen. On the other hand, commodity...
China PMI Reports Suggest that Exports Growth Eased while Price Pressure Intensified
The latest PMIs reveal that China’s economic activities eased in May. The Caixin services PMI eased to 55.1 in May from 56.3 a month ago, while the manufacturing PMI increased marginally, by -0.1 point, to 52.The detailed report suggests that new business slowed which price pressures intensified. The situation...
Range Trading Continues as Markets Await Breakouts
Major pairs and crosses are still bounded inside last week's range as markets failed to take a decisive direction. While oil price continues to strengthen its rally, there is little reaction from Canadian Dollar so far. Stocks are also range bound while 10-year yield hover around 1.6 handle. Nevertheless,...
Dollar Recovers in Range Bound Markets, No Breakout Yet
The financial markets continue to be range bound today, as traders seem to be holding their bets before Friday's US job report. Dollar is recovering mildly but it's held below next term resistance levels. Sterling is currently the stronger one, while Swiss France is the weakest.
Technically, we're still staying...
Swiss Franc Higher in Subdued Trading, Dollar and Sterling Soften
Trading continued to be rather subdued in Asian session. Major pairs and crosses are staying inside yesterday's range, as well as last week's range. Sterling is currently the weakest one, after failing to follow through the rally attempt earlier this week. Dollar is the next weakest for now. On...
Canadian Dollar Jumps With Oil Price, Supported by GDP
Canadian Dollar jumps broadly today, following upside breakout in oil price, and partly supported by solid GDP growth data. Australian Dollar is following as the second strongest, while Dollar is also rebounding. On the other hand, Sterling reversed earlier rallies after failing to sustain above a key resistance against...
RBA Affirmed that Adjustments to YCC and QE would be Announced in July
As expected, the RBA left all monetary policy measures unchanged in June. Policymakers maintained a dovish tone, suggesting no rate hike at least until 2024. They also affirmed that some adjustments to the monetary policy would be made in July.
On economic developments, while reiterating the "strong" growth outlook in...
Aussie Steady after RBA, Dollar Softens Mildly
Trading remains relatively subdued in Asian session today. Aussie firmed up slightly, but lost momentum after RBA delivered no surprise to the markets. Sterling is also trying to break through a key near term resistance against Dollar, but there is no follow through buying yet. The greenback, on the...
PBOC Seeks to Curb CNY Appreciation by Withdrawing FX Liquidity
People’s Bank of China (PBOC) announced to increase of FX deposit reserve requirement ratio (RRR) to 7% from the current 5%, effective June 15. The move, together with recent comments from official, suggests that the central bank is getting uncomfortable with recent appreciation in renminbi (RMB, CNY). We believe...
Sterling and Dollar Softer in Subdued Trading, Aussie Firm ahead of RBA
Trading continue to be relatively subdued as US and UK are both on holiday. Sterling is mildly softer, followed by Dollar, and Swiss Franc. On the other hand, Australian Dollar is strengthening mildly, ahead of RBA rate decision in the upcoming Asian session. It's highly unlikely for the central...
Dollar Mildly Lower in Holiday Mood, Busy Week Ahead
Dollar weakens broadly in relatively quiet Asian session today, while Australian Dollar is strengthening. Asia markets are trading mildly lower, but losses are limited. Month-end flow, plus holiday in the UK and the US, could keep activity subdued today. But the week ahead is extremely busy, with lots of...