Concerns of the rising bond yields! Cautious sentiment arises
22-02-2021 09:54
Market Outlook
AUD may extend its losses over US data?
“Traders pour into greenback ahead of this week’s key US data.”
Australian dollar remained pressured during Asian trading session as market focus shifts towards the greenback. Earlier, White House spokeswoman Karine Jean-Pierre commented that they are expecting elevated inflation due to ongoing supply chain issue. Her comment came in line with recent data from St. Louis Fed which suggests extended increase in overall price levels. While Reserve Bank of Australia delivered a huge rate
09-06-2022 03:47
New high incoming for GBPJPY?
“Kuroda stressed their commitment towards maintaining current stimulus.”
We witness yet another day of Japanese Yen’s weakness, with pairing of GBP/JPY hitting its highest level in 2 months. Yen was offered heavily in the market due to increasing divergence in between Federal Reserve and Bank of Japan policy guidance. Yesterday, BoJ Governor Haruhiko Kuroda emphasized that “it is not the time” to execute an exit strategy for current ultra-loose monetary setting. Likewise, Kuroda
08-06-2022 09:20
Will greenback’s rebound lasts?
“Higher demand for greenback after Nonfarm Payrolls report.”
Market bulls regained their control over the greenback as investors react positively towards latest employment data from the US. According to BLS, US economy has added 390,000 new jobs last month, exceeding consensus forecast of 325,000. However, the data is significantly lower when compared to April’s reading, which received upward revision to 436,000. While jobs creation shows a possible downtrend, it is still hovering at
07-06-2022 03:32
US dollar droops, jeopardized by its own data.
“The data suggests slower labour growth in months to come as financial condition tightens.”
Greenback erased its previous gains as recent economic data reinforced risk seeking sentiment among market participants. According to ADP, US Nonfarm Employment Change came in at 128,000, significantly lower when compared to consensus of 300,000. The data has jeopardized bullish speculation among traders for a positive tilted Nonfarm Payrolls report that could cement the need for further
03-06-2022 09:37
Oil price relinquished as it approaches monthly highs.
“Tightness in the market may prompt Saudi to increase their oil production.”
Crude oil price extended its pullback on Thursday, ahead of key meeting among producers later in the day. According to reports, some economist speculated that Saudi Arabia may increase their oil production in response to urging repeated calls from the United States. The speculation was formed based on decreasing output from Russia after Western powers enforced sanctions due to its invasion in Ukraine.
Quick
02-06-2022 10:08
Euro may tumble as risk aversion returns.
“EU leaders agree to ban 90% of Russian oil by year end.”
Risk aversion began to pick up during Asian trading session as economic conundrum emerges in the European Union. According to reports, EU leaders have agreed to ban oil imports from Russia. The move is enforced to cut off revenues from oil sales that may be channelled towards war in Ukraine. The embargo covers oil and petroleum products although it excludes oil that is being delivered from Russia via pipeline. Nonetheless, the
31-05-2022 07:32
Risk appetite dominates, US dollar relinquish further.
“Traders shifts their focus as Fed signaled to pause policy tightening.”
Bears continue to steer the greenback as traders shifts their focus towards risky assets in the market. For the time being, investors have seemingly priced-in for 2 more 50 basis point rate hikes from Fed, before pausing its tightening effort to monitor its impact towards US economy. Likewise, risk appetite towards China recovered substantially as Shanghai’s local government announced to remove curbs on
30-05-2022 08:40
US dollar set for biggest weekly loss as bulls pull out.
“Demand for greenback dwindles as Fed mulls to pause rate hike.”
Greenback is expected to record its biggest lost in four months as traders lower their expectation towards aggressive interest rate hike from Federal Reserve. Recently, meeting minutes from Fed signalled for a possible pause in rate hikes as they would like to monitor policy adjustment’s impact upon US economy. The latest signal from Fed dealt a significant blow on market participants as they speculated for more rate
27-05-2022 08:26
US dollar collapse as Fed fails to excite traders.
“Fed toning down on aggressiveness hinder further bets.”
Greenback relinquished, hovering near one-month low as latest meeting minutes from Federal Reserve failed to excite market bulls. On yesterday, the minutes confirmed recent comments from Atlanta Fed President Raphael Bostic who suggested a pause on rate hikes in September. Bostic emphasize that the exercise is necessary to monitor the effects of policy tightening on US economy. Evidently, recent revelation on Fed’s eventual plan
26-05-2022 04:22
Euro hawk returns, greenback bruised.
“Lagarde indicates that negative interest rate may likely be gone by end of summer.”
Greenback extended its losses, hovering near one-month low after European Central Bank President Christine Lagarde delivered hawkish signal on yesterday. Lagarde commented that euro-zone interest rates may be tweaked to positive territory by the end of third quarter. Her comment was a significant departure from prior dovish tilt to keep monetary policy accommodative. Likewise, it also imply possible
25-05-2022 02:57
