SNB Appears Less Concerned about Franc’s Strength, Raises Inflation Forecasts
The SNB left all its monetary policy measures unchanged. It kept the policy rate and interest on sight deposits at −0.75% and pledged to continue intervening the FX market if necessary. While leaving the growth outlook intact, the central bank upgraded slightly the inflation forecasts.
In the accompanying statement, the...
Dollar and Yen Maintain Gains as Markets Turn Steady
Markets are generally steady in Asian session today, with mild recovery seen in Nikkei. Though, movements in other markets are rather subdued. Commodity currencies recover in general while Yen, Swiss Franc and Dollar are the weaker ones. However, for the week, Dollar and Yen remain the strongest one while...
US Crude Oil Inventory Surprisingly Gained for a 5th Consecutive Week
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks soared +4.79 mmb to 1291.67 mmb in the week ended March 19. Crude oil inventory gained +1.91 mmb (consensus: -0.27 mmb) to 502.71 mmb. Stockpile increased in 2 out...
Market Sentiments Saved by Strong PMIs, Dollar Staying Firm
Asian markets closed in deep red earlier today while European stocks dived in initial trading. Yet, the markets were saved by much stronger than expected PMI data out of Eurozone and UK. Overall sentiments recovered notably, with US futures pointing to a rebound at open. In the currency markets,...
Selloff of Crude Oil Amidst Risk Aversion
Crude oil prices have extended the selloff for a third consecutive week. While the demand/supply fundamentals have changed little, the major reason for the decline is the broadly-based risk aversion driven by rising yields. International Energy Agency (IEA)’s report refuting prospect of a commodity supercycle has also triggered the...
Selloff in Asia Intensifies, Aussie and Kiwi Accelerate Down
New Zealand and Australian Dollar accelerates lower today as selloff in Asian stocks intensify. The development came on renewed concern over the third wave of coronavirus infections in Europe and return to lockdown. News regarding vaccines were also negative, as Hong Kong temporarily suspended Pfizer/BioNTech vaccination. Technically, Hong Kong...
Yen Rally Accelerates As Selloff in Commodity Currencies Intensifies
Yen buying accelerates today as selloff in commodity currencies intensified. New Zealand Dollar is trading as the worst, by some distance, followed by Aussie. Canadian Dollar is dragged down by decline in oil prices, while Sterling is also pressured after poor job data. On the other hand, Dollar is...
AUD and NZD Tumble Following Risk Aversion in Hong Kong and China
Commodity currencies are generally weak in Asian session, together with Sterling. Stocks in Hong Kong and China are reacting negatively to joint sanctions by EU, UK, Canada and US over China's genocidal treatments of Uyghurs in the Xinjiang region. EU's action is seen as significant turning point in the...
Euro and Swiss Franc Mildly Higher in Mixed Markets
The financial markets are generally mixed with subdued trading today. Nikkei did had a bad day, but the selloff didn't spread to other markets. European indices and US futures are mixed while Germany and US benchmark yields are mildly lower. As for currencies, Aussie and Sterling are currently the...
BOJ’s Yield Curve Control Helps Prevent JPY Appreciation, but Not Effective in Boosting Inflation
In its minor tweak on the yield curve control operation, the BOJ has widened the trading band of 10-year JGB yield by +/- 25 bps (+/- 20 bps previously). The central bank introduced YCC in September 2016, in addition to keeping the policy rate at -0.1% and the QE...
Yen Mildly Higher While Nikkei Tumbles, SNB a Focus in the Week
Nikkei trades sharply lower today as selloff continues after BoJ decide to exclude Nikkei-linked ETF from its purchases. Though, Topix is also trading down deeply. The Japanese markets are weighed down by news that a fire-damaged automotive semiconductor plant is going to take at least a month to restart....
Sentiments Turned Cautious on Yields and Infections, But Stay Positive
US treasury yield jumped last week after Fed gave way to more yield strength. In the background, there were some concerns over resurgence of coronavirus infections in some countries like France, Brazil and India. There was also risk of slower than originally expected vaccine rollouts. Tensions between US China...
CFTC Commitments of Traders – Bets on Risk Currencies Trimmed
As suggested in the CFTC Commitments of Traders report in the week ended March 16, USD drifted to NET LENGTH of 14 724 contracts to 5 837. Speculative long positions gained +2 816 contracts while shorts slumped -11 908 contracts. Concerning European currencies, NET LENGTH in EUR futures sank...
CFTC Commitments of Traders – Profit Taking on Crude Oil Trades amidst Rising Yields
According to the CFTC Commitments of Traders report for the week ended March 16, NET LENGTH for crude oil futures sank -11 996 contracts to 525 442 for the week. Speculative long position plunged -12 000 contracts, while shorts were down -4 contracts. We should expect to see more...
Dollar and Yen Firm as Investors Stay Cautious
Dollar is generally firmer as markets enter into US session. Futures point to a flat open, but investors are clearly on guard of selloff before the weekend. Cautiousness is keeping Yen afloat too, even though Swiss Franc is lagging behind. As for today, Sterling is the worst performing one,...
Yields Rise, Stocks and Oil Plunge, Yen Shrugs BoJ
Renewed surge in US treasury yields overnight sent stocks lower. Risk-off sentiments continued in Asian session general. Australian Dollar is currently the worst performing one for the day, weighed down further by weak retail sales data. Canadian Dollar is following as second weakest, as oil priced tumbled. Swiss Franc,...
BOE Voted Unanimously to Keep Bank Rate and QE Unchanged. Warned of Uncertain Outlook Despite Upbeat Data
The BOE voted 9-0 to leave the Bank rate unchanged at 0.1%. It will also continue to buy up to 875B pound of UK government bonds and 20B pound of corporate debts. While cautioning that the economic outlook remained highly uncertain, policymakers acknowledged the recent upbeat data, smooth vaccination...
Sentiments Weighed Down by Unstoppable Yields, Dollar Recovers
Sentiments appear to be weighed down by the upstoppable rally in treasury yields again today. At the time of writing, US 10-year yield is trading above 1.75 handle while Germany 10-year bund yield is at -0.25. US futures point to lower open, with weakness seen particular in NASDAQ again....
Dollar Falls on Risk-On Sentiment after FOMC, Aussie Powers Up on Job Data
Dollar dropped broadly overnight as markets turned into mild risk-mode following FOMC rate decision. A better economic outlook was painted by the new economic projections. Yet, Fed is clear that it's not even considering tapering the asset purchases for now. DOW and S&P 500 rose to new record while...
FOMC Review – Fed Revised Economic Projections Significantly Higher, while Pledged to Keep QE Size Unchanged Until Actual Progress is Seen in Economy
The staff significantly upgraded economic projections. While the policy rate will unlikely change before 2024, the median dot plot reveals that more members are now projecting rate hikes in coming two years. As widely anticipated, the Fed left all monetary policy measures unchanged: The size of asset purchases stays...