Wed, Mar 03, 2021 @ 15:32 GMT
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Dollar Recovers Despite Sluggish ADP Job Growth, Yields Up Again

Dollar recovers in early US session as sluggish ADP job growth drags down stock futures. Additionally, treasury yields are having a mild rebound. At this point, Sterling is following as the strongest followed the day, then Canadian. New Zealand Dollar is leading Australian Lower, followed by Swiss Franc and...

Aussie Supported by GDP, Dollar Turns Soft in Consolidative Markets

The markets are relatively mixed so far. Dollar's rally attempt was brought to a halt overnight while Euro and Swiss Franc recovered. Commodity currencies also recovered, as led by Aussie, with support from better than expected GDP data. Yet, major pairs and crosses are kept in tight range. In...

BoJ Kataoka: It’s hard now to foresee inflation powerfully heading towards 2%

Goushi Kataoka, the most dovish BoJ board member, said "it's hard now to foresee inflation powerfully heading towards our 2% target." "in order to prevent Japan's economy from falling into deflation, further policy coordination of both fiscal and monetary policy is needed," he added. "It was necessary for the BOJ to strengthen its policy...

Weekly Focus – Spill Over from Continuing Yield Increase

Yields continued up this week; US 10yr government bond yields reached a one-year high. Oil prices increased above USD67/barrel and industrial metals, particularly copper, have accelerated further as well, weakening safe haven currencies like JPY and CHF. This development has been backed by more positive vaccine news and a...

Dollar Strong as Stocks Stay in Red Even Though Yields Retreat

Even though treasury yields are retreating mildly today, stocks are staying in red in Europe and Asia. US futures point to a recovery but it's unsure if the rebound could sustain before close. Investors are digesting comments from central bank officials regarding surging real long term rates and inflation....

BoJ Kuroda: No intention of pushing 10-year yield up above 0% target

BoJ Governor Haruhiko Kuroda told the parliament today that "it's important now to keep the entire yield curve stably low as the economy suffers the damage from COVID-19". Also, "the BOJ has no intention of pushing up (10-year bond yields) above its target of around 0%." On monetary policy, Kuroda...

Yen Under Pressure as Swiss Franc Decline Slows a Bit

Selling focus appears to be turning to Yen as markets enter into US session. Swiss Franc remains weak but the decline is slowing slightly. Dollar and Euro are also soft, but both are supported by buying against Yen and Franc. On the other hand, commodity currencies remain the strongest...

BoJ Kuroda: Various tools including ETF purchases will be target of March policy framework review

BoJ Governor Haruhiko Kuroda told the parliament today that "the BOJ's various tools, including its ETF buying, will be the target of the March review. We'll examine how our tools are affecting markets and look at what we can do better." He added that government bond buying has already...

Sterling Stays Strong as Focus Turns to Retail Sales and PMIs

Sterling continues to trade as the strongest one for the week, as focus turns to UK retail sales and PMIs. Upside surprises there could give the Pound another lift. Australian Dollar is keeping itself close as second strongest for now. On the other hand, Yen and Swiss France are...

Japan CPI core rose to -0.6% yoy in Jan, CPI core-core turned positive to 0.1% yoy

Japan CPI core (ex-food) climbed back to -0.6% yoy in January, up from -1.0% yoy, above expectation of -0.7% yoy. All item CPI also rose to -0.6% yoy, up from -1.2% yoy. CPI core-core (ex-food and energy) turned positive to 0.1% yoy, up from -0.4% yoy. BoJ is set to...

Dollar Dives after Jobless Claims, Sterling Powers Up

Dollar is back under some selling pressure, starting in European session, and intensifies after poor job data. Weakness in the greenback is dragging down Canadian Dollar as the second worst performing, while Yen follows as third. Sterling is once again leading the way higher, followed by Aussie and Kiwi....

Aussie Mildly Higher after Job Data, Oil Extends Up Trend

Australian Dollar strengthens mildly in Asian session today, as supported by another set of solid job data. But overall, trading in the forex markets is subdued. Dollar is taking a breather as FOMC minutes provided no special inspirations. The greenback is, nonetheless, staying as the strongest one for the...

BoJ Kuroda: Exports recovered to pre-pandemic levels

BoJ Governor Haruhiko Kuroda told reporters today that Japan's exports have recovered to levels before COVID-19 struck. Output was making similar moves while consumption was picking up as a whole. However, services spending remains weak. Kuroda also Prime Minister Yoshihide Suga today, and "explained how the global economy was picking...

Euro Weak With Dollar in as Stock Surge Further, Looks into German ZEW

Overall developments in the markets are unchanged as strong risk-on sentiments continue. Yen is currently the worst performer by a mile. Dollar, Euro and Swiss Franc are following behind. Sterling continue to stay strong together with commodity currencies. A focus today is on whether Germany ZEW economic sentiment and...

BoJ Kuroda: Optimism over global outlook and vaccine rollouts behind surge in stock prices

BoJ Governor Haruhiko Kuroda told the parliament that "optimism over the global economic outlook and steady vaccine rollouts may be behind the recent surge in stock prices". Nevertheless, he also warned that "global outlook remains highly uncertain and risks to Japan's economy remained tilted to the downside. His comment...

USD Remains Under Pressure Ahead Of Public Holidays For US And China

Bears returned to keep USD under pressure of the 3-day weekend in the US and China. Japan's GDP data kicks of today's otherwise quiet session. Bears returned to keep USD under pressure last week ahead of the 3-day weekend in the US. The US dollar index (DXY) fell further away...

Week Ahead: Holidays, Lockdowns, Inflation and Platinum

It’s the Chinese Lunar New Year:  the year of the ox!  However, restrictions are in place to prevent people from traveling over the holiday. Lockdowns are still in full swing in many countries while monetary and fiscal stimulus continue to hold up fragile economies, especially in Europe.  While many...

Dollar’s Fall Continues as Core CPI Slows, Sterling Rises With UK Yields

Dollar's selloff continues in early US session and it's extending after weaker than expected core CPI reading. Sterling is lifted by strength in UK yield today, with 10-year Gilt yield hitting as high as 0.494 so far. It could try to take on a pre-pandemic floor of around 0.50%....

Dollar Selloff Continues as Risk Sentiment Stabilizes, More Downside Likely

Dollar stays broadly weak in Asian session today even though general sentiments stabilizes. Risk-seeking trading is taking a breather somewhat after US stocks hit new intraday higher overnight. Euro is currently the stronger one for today, followed by Sterling. But Swiss Franc and Yen are currently the best performing...

BoJ Nakamura: Prolonged holding of assets could affect market functions

BoJ board member Toyoaki Nakamura said the March policy review will seek ways to make the easing framework more "effective" and "sustainable". The review will also looking into whether the asset purchases and various tools are "exerting intended effects". Nakamura maintained that ETF purchases "will remain a necessary tool" to...

Euro Stays Weak Despite Better CPI, Dollar Shrugs Strong ADP Job Growth

Economic data released today are largely ignored so far. Euro's weakness continues despite stronger than expected inflation reading. Swiss Franc and Sterling are also softening slightly. Dollar, on the other hand, struggles to extend gain after much stronger than expected ADP employment. New Zealand Dollar continues to trade as...

Kiwi Rises on Job Data, Loonie Firm on Oil Price, Euro and Franc Weak

Canadian and New Zealand Dollar are both in the driving seats in the markets this week. Return of risk appetite is providing the base for rally. Meanwhile, Kiwi is lifted by stronger than expected job data while Loonie follows oil prices higher. Aussie is lagging behind on RBA, however....

Wakatabe: BoJ won’t tighten in conducting upcoming policy assessment

In a speech, BoJ Deputy Governor Masazumi Wakatabe said "downward pressure" on the economy from the resurgence of COVID-19 is "likely to remain strong for the time being". But the economy thereafter "will follow an improving trend, albeit only moderately". The economy would be "supported by a recovery in...

Canadian Dollar Rebounds on Strong GDP Growth, Dollar Turns Soft Despite Risk-Off

Canadian Dollar rises broadly in early US session, with the help from better than expected GDP data. Euro is also firmer on German and French GDP data. While markets are back in risk-off mode, Yen, and to a lesser extent Dollar and Swiss Franc, turn softer. As for the...

Stock Market Rebound Fizzles Out, But FX Remains Calm

Wall Street set to open in the red, erasing latest rebound Overall, nothing has changed, so risk aversion could fade soon Dollar outperforms yen after BoJ signals, loonie crumbles Fear grips Wall Street again What a crazy week. An assault by small investors weaponizing call options against hedge fund short...

High Volatility Continues in Markets, USD/JPY Upside Breakout

Markets continues to engage very volatile trading, with US stocks and treasury yield staged strong rebounds overnight. Though, the moves are not totally followed by Mixed Asian markets. As for currencies, weakness in Australian and Canadian Dollars appear to be the more persistent near term theme. But Yen is...

BoJ Opinions: Downward pressure strong but moderate improving trend maintained

In the Summary of Opinions at BoJ's January 20-21 meeting, it's noted, "the impact of the reinstatement of the state of emergency for 11 prefectures... should be monitored carefully given that private consumption in these prefectures accounts for nearly 60 percent of Japan's." While downward pressure is "likely to...

Dollar Remains Overvalued; Can America’s Twin Deficits Still Sink It?

The US dollar ended a volatile 2020 down 6.5% against a basket of currencies, underlining the dramatic turnaround in risk appetite from the depths of the March virus crisis. That risk rally is showing no sign of abating anytime soon, driving bearish bets against the dollar to near-decade highs....

Germany Slashes Growth Forecast, UK Tightens Border, Risk Appetite Recedes

Dollar, Yen and Swiss Franc strength again today, as dragged down by the decline in European stocks. DOW future is also losing -300pts at the time of writing. Sentiments are slightly weighed down by UK's plan to impose tougher border measures. Germany slashed this year's growth forecasts. Commodity currencies...

BoJ Kuroda: Frequency and size of ET purchases fallen sharply recently

BoJ Governor Haruhiko Kuroda said the central bank's ETF buying is not distorting the Tokyo stock market. "We are buying ETFs as part of a comprehensive monetary easing framework. We have no plans now to end the framework or our ETF purchases," he said. "The frequency of our ETF buying...