Market Overview
Genuine Confidence on the Economy or Simply a Mirage; Dollar in Search of Answers
In a week brimming with financial intricacies, the most surprising element was the remarkable bounce-back in US stocks post the release of the compelling non-farm payroll report. Conventional wisdom would suggest that such a robust report would serve to reinforce Fed's inclination towards prolonging its restrictive monetary policy, even...
Greenback’s Resurgence: Stellar Job Growth Propels USD Towards Weekly Dominance
Dollar is showing impressive strength in the early US session, boosted by job growth figures that nearly doubled market predictions. While wage growth figures mildly underwhelmed, it didn't deter traders' enthusiasm, propelling the Dollar to potentially conclude the week as the dominant currency.
Notably, Dollar has made up for its...
Dollar Holds Ground Despite Pullback, Eyes NFP for Fresh Momentum
Dollar, despite retracting some of its earlier gains, remains robust, demonstrating resilience as one of the week's frontrunners. At the same time Yen and, to a lesser extent, Swiss Franc is showing strength too, underscoring the markets' cautious stance. Meanwhile, commodity currencies are languishing at the lower echelons, with...
Sterling Underwhelms amid Market Consolidation; Gold Heading Lower Again
British Pound emerged as the weakest link, facing headwinds following subpar construction data. Not far behind in performance was the Canadian Dollar, which felt the pressure from the ongoing plunge in oil prices. Dollar, while still in a commanding position, appears to be taking a pause, digesting its recent...
Yen Moves Up on Wage Hike Push by PM, Halts Well Short of Intervention Peak
Japanese Yen is registering broad gains in today's Asian trading session, buttressed by the 10-year JGB yield which solidly remains above the 0.8% threshold. However, the yen's advancement is notably limited, still lingering below this week's high, which many attribute to a suspected, yet unverified, intervention. Japanese
The spotlight falls...
ADP Job Figures Weigh on Dollar, But Uptrend Still Intact
Dollar softens broadly today, as it seems traders are exercising caution, pivoting their focus towards forthcoming heavy-weight economic data releases from the US in the second half of the week. The greenback's pull back also extends following much weaker than expected ADP private job data. Interestingly, this "bad news...
Market Mayhem: Escalating Risk Aversion Meets Yen Intervention
Dollar is finding strength amidst an atmosphere of palpable anxiety in the financial markets, stemming from a continuation of the risk-off mood from US into Asian session. This prevailing anxiety in the markets has been heightened by the pronounced drop in US stocks overnight, coupled with a surge in...
Yield Rally Propels Dollar Forward; Swiss CPI Weighs on Franc
In the spotlight today are the developments within the treasury markets. US 10-year yields have soared, reaching their highest point since 2007. This surge is largely attributed to expectations that Fed will keep high interest rates for longer, if not push them even higher. Fed hawks have been vocal...
Aussie Faces Headwinds Post-RBA Hold Amid Asian Market Jitters and Dollar Power
Australian Dollar is facing heavy downward pressure, emerging as the most underperforming currency this week so far. The weak under tone is maintained following RBA's decision to hold interest rates steady. Both Aussie and Kiwi have relinquished the gains made the previous week, a reversal exacerbated by an evident...
Dollar Benefits from Rising Treasury Yields; Precious Metals Stumble
Dollar is experiencing a broad rise today, buoyed by an uptick in treasury yields and risk aversion sentiments. The US Congress averted potential economic turbulence by passing a stopgap funding bill over the weekend, ensuring the federal government doesn't enter its fourth partial shutdown within a decade. However, this...
USD/JPY Nears 150, AUD/NZD Slides; US Data, RBA and RBNZ Eyed
USD/JPY is making notable advances today, resuming recent up trend, and edging closer to 150 psychological handle. AT the same time, Nikkei rebounds, reclaiming 32000 mark. The combined risk-on sentiment could be attributed to investors' positive response to the optimistic quarterly Tankan survey results, overshadowing the less favorable PMI...
Dollar’s Ascendancy on Market Flux Challenged by Resilient Aussie and Kiwi
As the global financial markets tread through turbulent waters marked by escalating treasury yields and declining stocks, the US Dollar emerged as a beacon of strength. A noticeable uplift in the currency was observed last week, an upward motion fuelled by the twin factors of soaring treasury yields and...
End-of-Quarter Optimism Fuels Markets Amid Eased Inflation Pressures
As the quarter nears its end, a tangible shift towards a risk-on sentiment is sweeping through the global financial markets. Supported by lower than expected inflation data from both sides of the Atlantic, investors are regaining confidence. This renewed optimism is evident in the notable gains posted by major...
Sentiment Turns at Quarter End, Eyes Set on Eurozone CPI and US PCE
The global markets experienced a noticeable shift in momentum as major US stock indexes concluded with substantial gains overnight, and treasury yields took a step back. This favorable swing persisted into Asian trading hours, marked by a remarkable rebound in Hong Kong stocks. Australian Dollar has been on the...
Dollar Turning Into Consolidation, US Yields Outshone by Europeans
Dollar is experiencing a broad retreat today, reflecting a phase of consolidation after its notable advancements in the recent days. Market participants are seemingly recalibrating their positions, with the closure of the month in sight and in anticipation of pivotal economic data slated for release next week.
While the rise...
Dollar Soars on Sky-High Yields, Gold Plummets
Dollar's strength remains unabated, particularly against its European counterparts and Yen. The greenback rose alongside 10-year yield, which soared past the 4.6% mark overnight, a level unseen in over 15 years. The surging global treasury yields are a clear indicator of the market's expectation for a prolonged period of...
Dollar Rises Further after Durable Goods Orders, Aussie Falters on Evergrande Crisis
Dollar rally shows no signs of stopping in early US session, and the greenback it buoyed slightly by stronger than expected data on durable goods orders. Yet, looming in the background is the potential for the fourth US government shutdown in the last ten years, a scenario that's only...
Dollar Rally Continues With Tailwinds from Risk Aversion
Amid the backdrop of surging treasury yields, Dollar has pressed on, extending its recent rally. The mounting sentiment of risk aversion has provided additional tailwinds for the greenback, especially after the DOW experienced its sharpest decline since March. For now, Yen emerges as the day's runner-up in strength, shadowed...
Dollar Losing Some Momentum Amidst Government Shutdown Concerns
Dollar, although retaining its strength, is witnessing mild deceleration in upside momentum as US session starts. The spotlight now shines on any potential progress within the US Congress to prevent a partial government shutdown looming this Sunday. While the notion of a shutdown isn't unfamiliar in the US, having...
Surging Treasury Yields Propel Dollar to 10-month High, EUR/USD Breaks Key Support
Dollar is being the standout performer this week, bolstered significantly by surging US treasury yields. Dollar index, which gauges the greenback against a basket of six major currencies, reached a high not seen since the previous November, breaking 106 mark. Contributing to the bullish momentum, EUR/USD has plunged through...