Markets Turned into Consolidation, With Conflicting Signals
Markets, including stocks, gold and currencies, were generally bounded in consolidative mode last week. News regarding coronavirus vaccines failed to give sentiments another boost. Instead, investors are waiting for fresh inspirations. Dollar ended as the worst performing one, but stayed inside prior week's range, except versus Kiwi. Euro, and...
New Zealand Dollar Rises after RBNZ, US Yield Resilient
New Zealand Dollar surges broadly today as markets see that RBNZ has less need to cut into negative next year. Kiwi's strength is somewhat taking Aussie higher too. On the other hand, Sterling is paring some of yesterday's strong gain while Dollar is following as second weakest for now....
Markets Mixed as Vaccine Boost Fades, Dollar Support by Yields
The forex markets turned mixed in Asian session today as the boost from coronavirus vaccine faded quickly. The close in US stocks overnight was rather disappointing and DOW ended up just 2.95%. NASDAQ has indeed closed with -1.53% loss. In the currency markets, Yen is trying to recover but...
Dollar strikes back as 10-yr yield breaks key resistance, Gold eyes key support
Dollar is trying to make a come back with strong rally in US treasury yield, as also confirmed by the steep fall in gold. 10 year yield is trading up 0.145 at 0.965 at the time of writing. Technically, the strong break of near term channel resistance is a...
Stocks Ready for Upside Breakout, But Yen Crosses Seem Not Agreeing
Politics aside, stock investors were the biggest winners of US presidential elections, while Dollar holders were the losers. The greenback ended as the worst performing one, followed by Yen by a wide margin. Australian Dollar shrugged of RBA easing and ended as the strongest, leading other commodity currencies. European...
Key Levels to Watch as US Presidential Election Looms
Global equities tumbled notably last week, partly as coronavirus spread was hitting new record highs. Also of the same importance, US investor had lightened up their positions in preparation for the Presidential elections. Yen and Dollar surged broadly to end as the strongest one. Euro was the worst performing,...
Euro Tumbles on Coronavirus and Lockdown, Yen Riding Higher
European majors are all trading broadly lower today on worsening coronavirus spread and return to lockdowns. Mild risk aversion keeps the Japanese Yen afloat but it's outperformed slightly by Aussie, after slightly stronger than expected Australian CPI reading. Dollar is mixed for the moment, benefitting little from risk aversion....
10-yr yield falls as Trump confirms no stimulus deal before election
It's now clear that there won't be any stimulus deal before elections. President Donald Trump indicated, "after the election we'll get the best stimulus package you've ever seen." DOW and S&P 500 closed lower overnight while NASDAQ ended with small gain. Treasury yield also finally moved in tandem with...
Sterling to Take the Limelight as Dollar Takes a Breather
Dollar recovers mildly in Asian session today but remains generally weak, as the worst performing one for the week so far. Sellers appear to be taking a breather for now, and wait for fresh development regarding fiscal stimulus, as well as the final Presidential debate before election. For now,...
US moved closer to fresh fiscal stimulus, stocks shrug, yields surge
After a 48-minute phone call, US Treasury Steven Mnuchin and House Speaker Nancy Pelosi appeared to move closer to an agreement on fresh fiscal stimulus. Yet, time is running out for passing any deal before election. Pelosi spokesman Drew Hammill said the negotiators moved "closer to being able to put...
Dollar Tumbled as Investors Hungry for Risks, Down Trend Resuming?
Yen and Dollar ended the week as overwhelmingly the worst performing ones. Despite all the jitters regarding US President Donald Trump's coronavirus infections, stimulus talks stalemate, major stock indices ended the week strongly higher. Yen is additionally pressured by strong rally in treasury yields too.
On the other hand, Canadian...
Aussie Steady after RBA, Dollar Weak Despite Surging Yields
The forex markets are relatively steady in Asian session today, despite strong moves in stocks and treasury yields overnight. Australian Dollar is treading water after RBA left monetary policies unchanged. It's clear that the central is paving the way for more easing to support the job market. But the...
US 10-year yield posted strong rise, hit highest level since Jun
US treasury yields at the long end posted strong rally overnight. 10-year yield closed up 0.066 at 0.762, hitting the highest level since June.
There were a couple of explanations for the strong move. There appeared to be progress on the prospect of a fresh stimulus deal before election, especially...
Yen Down on Surging Yield, Rebounds on Abe Resignation Talks
Dollar spiked lower overnight after quickly stabilized, as supported by surge in treasury yields. Fed Chair Jerome Powell announced that adoption of "average inflation targeting". That goes beyond the "symmetric" targeting, and allows inflation to overshoot to average out at 2% over time. While there was some initial jitters...
Range Trading Continues With Eyes on Gold, Oil and Yields
The forex markets continue to stay in rather tight range today, shrugging off strong movements in the stock markets. Yen is generally soft but there is no sign of breakout yet. Similarly, Dollar is also struggling to find a clear direction, staying as the second weakest for the week...
US 10-yr yield in another rally attempt after defending 55 day EMA
While S&P 500 and NASDAQ continued to make record highs overnight, it's the development in treasury yields that's worth more a mention. 10-year yield hit as high as 0.716, then pared back some gains to close at 0.682, up 0.036. It's now trading above 0.71 handle in Asian session.
Unlike...
Euro Tumbled as Optimistic Investors Reassess Outlook, Turning Around?
Euro ended as the worst performing one last week as investors could have started to reassess the economic outlook. As ECB meeting accounts pointed out, recent positive market developments were "not fully backed by economic data". Indeed, they might be based on "overly optimistic expectations" about the Next Generation...
Yields Surged, Gold Corrected, But Dollar Got No Lift
It was a rather mixed week where there were conditions for a Dollar rebound, with surging treasury yield and correction in Gold. Yet, no apparent rally was seen. Yen was sold off generally, partly on coronavirus and recovery optimism. But the Swiss Franc was firm together with Euro.
Strong rally...
Sentiments Weighed Mildly by China Data, Gold and Yields to Watch
Markets are relatively steady in Asia today. Sentiment was somewhat weighed down by mixed data from China, but there is no apparently follow through selling. New Zealand Dollar continues to be pressured as the country extends coronavirus lockdown by 12 days. Australian Dollar seems to be benefiting from the...
Euro Higher in Consolidative Markets, Yet to Break Resistance Against Dollar
European majors turn slightly stronger today, in mixed markets. Euro appears to be supported by news that US is refraining from tariffs hikes on Airbus subsidies retaliation. Though, except versus Yen, Euro's strength is not too convincing yet. Dollar turns soft again following strong rally in US stocks overnight....
Dollar Rebounds on Gold and Yield, NZD Hammered by Double Whammy
New Zealand Dollar tumbles broadly today as weighed down by double-whammy of RBNZ QE expansion and return to lockdown. The selloff in Kiwi is somewhat dragging down Aussie and Canadian too. On the other hand, Dollar is staging a strong rebound, with help from much steeper than expected correction...
Weekly Report: Coronavirus Drove Markets, Second Wave Concern Offset by Treatment Optimism
Development of coronavirus pandemic was the main driver in rather dull markets last week. Just when it looked like risk-off was back on second wave of infections, markets were saved by news from Gilead Sciences regarding the test results on redmesivir. NASDAQ has extended its record run, helping treasury...
Aussie Tumbles on Coronavirus Spike, Yen Flies on Risk Aversion
Yen surges broadly today as the financial markets are back in risk-off mode. Or at least, rally in Chinese stocks is having a pause. Investors some what turned cautious ahead of the week. US Secretary of State Mike Pompeo announced sanctions on some Chinese officials, including a Politburo member,...
US 10-year yield breaking 0.6 while stocks were mixed
The US stock markets continued to display some divergence overnight. DOW ended down sharply by -361.19 pts or -1.39%. S&P 500 also dropped -17.89 pts or -0.56%. Yet, NASDAQ scored another record high, rose 55.25pts or 0.53% to close at 10547.75. However, the steep decline in 10-year yield could...
Yen, Swiss and Dollar Rise as Risk Aversion Comes Back after FOMC
Yen, Swiss Franc and Dollar strengthen generally today as risk appetite is having a setback after dovish FOMC announcement overnight. While NASDAQ continued to defy gravity and extended the record run, DOW and S&P 500 closed mildly lower. Asian markets are also trading in red as pull back in...
NASDAQ extended record run after Fed, But DOW and TNX dip
Market reactions to the dovish FOMC statement and projections overnight were generally negative, except NASDAQ. DOW closed down -1.04% while S&P 500 dropped -0.53%. But NASDAQ extended the record run and rose 0.67% to 10020.35. 10-year yield extended this week's steep reversal and closed down -0.081 to 0.748.
Nevertheless, it...
Investors in Euphoria, Betting on a V-Shaped Recovery
The global financial markets were basically in euphoria last week. Lockdown restrictions continued to be eased. ECB provided more stimulus by expanding the crisis purchase program. Surprised growth in US and Canadian employment in May argue that the worst of coronavirus pandemic is already behind us. More importantly, investors...
Nasty NFP Numbers
The headline Nonfarm Payrolls number was -20,500,000 vs an expected -21,000,000 and a revised -870,000 for March. At any other point in time a 500,000 difference between the estimated and actual would have been a huge difference. However, these days, the actual number was considered roughly in line with...
Dollar in Strong Rally as Coronavirus Pandemic Worsened, Key Resistance Levels Broken
The anticipated market stabilization didn't happen last week. Instead, despite massive monetary and fiscal stimulus, stocks around the world still ended sharply lower. Nevertheless, as stocks are showing sign of loss of downside momentum. Treasury yield has somewhat stabilized in range. We'd see that the rock bottom in investor...
DOW dropped 758.9, 10-yr yield broke 1% despite Fed’s rate cut
Instead of giving market confidence a boost, Fed's surprised -50bps rate cut overnight seemed to have knocked down sentiments instead. DOW closed down -2.94%, S&P 500 dropped -2.81% or 785.91 pts, NASDAQ lost -2.99%. 10-year yield broke 1% handle to new record low of 0.908, before closing at 1.010,...