Dollar to Pause for Consolidation After Failing to Break Euro Resistance Post-FedThe financial markets were jolted by Fed’s hawkish rate cut last week, sending ripples across stocks, bonds, currencies, precious metals, and even cryptocurrencies. Fed’s indication of prolonged restrictive monetary policy fueled risk aversion, pushing Dollar to end the week as ...
Dollar Pauses After PCE Miss, Markets Digest Fed CommentsDollar’s strong rally paused in early US trading after PCE inflation data came in below expectations, easing concerns that Fed might maintain higher rates for an extended period. Markets are also digesting remarks from Fed officials following the hawkish rate ...
Sterling and Yen Underperform After BoE and BoJBoth Sterling and Japanese yen are among the weakest-performing currencies today, following their respective central banks meetings. BoE left rates unchanged at 4.75%, but the surprise came from a dovish shift in the MPC, with three members voting for a ...
Market Chaos Unfolds Despite Widely Expected Fed Hawkish CutFed’s hawkish rate cut overnight sparked an outsized market reaction, with DOW plunging over -1100 points and NASDAQ losing -3.5%. Fed’s messages didn’t deviate from expectations leading to the meeting, indicating a slower easing path in 2025 with likely just ...
Markets Hold Steady with Fed’s Rate Cut and 2025 Outlook in FocusThe forex and stock markets are holding steady today, with limited volatility as traders anticipate FOMC rate decision and updated economic projections. A 25bps rate cut, reducing the target range to 4.25–4.50%, is virtually certain. However, the market’s focus lies ...
Dollar Awaits Fed Clarity on Easing, Sterling Shrugs Strong Inflation DataDollar has strengthened against commodity currencies this week but remains range-bound against Euro and Pound, as markets await Fed’s rate decision to gauge the next move. While a 25bps rate cut is fully expected in with no chance of deviation, ...
Canadian Dollar Weakens on CPI; Dollar Firm After Retail SalesCanadian Dollar trades broadly lower today while commodity currencies are generally soft. Canada’s CPI report reinforced the outlook of stable inflation hovering around target. BOC has likely completed its aggressive rate-cutting phase and pauses in policy easing are anticipated at ...
Sterling Holds Firm on Strong Wages Growth, GBP/CHF Upside BreakoutSterling remains resilient, as supported by UK employment data indicating that wages remain robust. This development aligns with improved conditions in the UK’s services sector, as seen in yesterday’s PMI release, and suggests that underlying price pressures have not diminished ...
Markets Start With Mild Risk-Off Mood, Central Bank Bonanza ContinuesThe forex market began the week on a subdued note, with mild risk-off sentiment setting the tone. China’s latest economic data painted a bleak picture, with retail sales significantly underperforming expectations and fixed asset investment experiencing a deeper decline. While ...
Inflation Pressures and Yield Surge Anchor Dollar as Top PerformerDollar ended as the strongest performer last week, boosted by a surge in U.S. Treasury yields following persistent inflation data. Despite expectations of another 25bps rate cut at the upcoming FOMC meeting, stubborn price pressures are likely to slow the ...
Euro Rebounds on ECB Gradualism, Sterling StrugglesThe Euro rebounded broadly today, buoyed by reassurances from a number of ECB officials that the central bank remains committed to a gradual approach to policy easing. Yesterday’s 25bps rate cut appears to have had solid consensus backing, with no ...
Sterling Drops on Surprise UK GDP Contraction, Dollar StrengthensSterling slumped broadly today after UK GDP unexpectedly contracted in October, missing forecasts of modest growth. This contraction underscores the challenges facing the UK economy, which has been grappling with persistent inflation and uncertainty following the Autumn Budget. The government’s ...
European Majors Struggle After SNB, ECB CutsEuropean majors are broadly under pressure today, with Swiss Franc leading losses. SNB’s unexpected 50bps rate cut caught markets off guard, and its significantly downgraded inflation projections suggest more easing is on the table for 2025. Meanwhile, Euro managed to ...
SNB and ECB to Cut, Aussie Rebounds on Job DataAustralian Dollar staged an impressive rebound today, driven by robust employment data that surprised markets and cast doubt on the likelihood of a February rate cut by RBA. The stronger-than-expected labor market performance challenges the dovish sentiment established earlier in ...
Dollar Steady Post-CPI as Yen Slips; Aussie Faces Key Jobs TestDollar showed minimal reaction, other than some initial jitters, to November’s US CPI data, holding steady within its range as the report largely aligned with expectations. Headline inflation edged up, while core inflation remained flat, refusing to trend lower. With ...
Aussie Slumps on Yuan Depreciation Speculation; US CPI and BoC LoomAustralian Dollar continued its decline today as speculation mounted that China might allow Yuan to weaken in 2025 to counteract the economic impact of increased US trade tariffs under the incoming Trump administration. While no official announcement has been made, ...
Euro Hits 2024 Low vs Sterling as ECB Dovish Expectations BuildEuro’s selloff accelerated today, breaking to a new 2024 low against Sterling. The common currency also weakened notably against the Swiss Franc, even as it remained relatively steady against other peers. Market sentiment appears to be pricing in dovish guidance ...
Aussie Falls on RBA Dovish Shift; China’s Stimulus Optimism WanesAustralian Dollar dropped sharply in Asian session following a significant dovish turn in RBA’s communication. After holding rates steady at 4.35%, the central bank signaled growing confidence that inflationary pressures are easing, marking a departure from its previously vigilant tone. ...
