Concerns of the rising bond yields! Cautious sentiment arises
22-02-2021 09:54
Market Outlook
USDJPY tumbles as banking crisis spook positive expectations.
“This week’s policy meeting by Federal Reserve will be the determination of US dollar’s mid-term direction.”
Greenback languished as recent banking crisis reshuffled investors expectation towards the possibility of further tightening from the Federal Reserve. Following prior bail out of commercial banks, Fed introduced emergency lending programs that may further expand their $8.6 trillion balance sheet. Analysts believe that this may curtail Fed from tightening their policy
21-03-2023 07:51
Oil price devastated by recent banking crisis.
“Recent banking crisis in the west spurred risk aversion in the market, pushing oil price lower to more than a year low.”
Global oil price collapses, hovering near 15-months low following the collapse of several US banks which spurred concern over economic recession that may spread to other regions. While US and EU government step in to curtail the crisis, market participants remains on the edge while adopting a wait-and-see approach. On the other hand, several media reported that Saudi
17-03-2023 08:59
Greenback battered as banking crisis erupts.
“Safe-haven currencies such as Japanese yen received higher demand following Credit Suisse’s banking crisis.”
Japanese Yen rose on Wednesday following reports of “weakness” in Credit Suisse’s latest financial report that spark investor’s concern over possible banking crisis in the market. From Credit Suisse’s annual report for 2022, the bank noted that they have discovered some “material weakness” in its financial reporting. While the bank did not specify the issue,
16-03-2023 08:25
USDCAD tumbles, may extend its losses ahead.
“More losses ahead for greenback as investors wait for more signal from Fed.”
Greenback weakens further after mixed economic data which push investors to adopt a wait and see approach. Last Friday, US Nonfarm Payrolls report shows a downtrend in hiring, which may derail Federal Reserve’s call to have more interest rate hike in the future. However, yesterday’s Consumer Price Index shows a different perspective. Last month, consumer goods inflation remained at high level of 6.0% on a
15-03-2023 06:40
Dow Jones tumbles as banking crisis erupts.
“Banking crisis in the US prompts risk aversion, with immense selloff among financial services stocks in the country.”
US equities ended the lower on yesterday, spurred by rising concern over banking turmoil in the United States. Following the collapse of Silicon Valley Bank and Signature Bank, the US government and Federal Reserve stepped in to rescue the banks while agreeing to backstop all depositors. In addition, the Fed launched a new funding program which will offer loans with
14-03-2023 07:26
Gold price rise sharply after Nonfarm Payrolls report.
“Nonfarm Payrolls report shows a slowdown in hiring, spurring selloff of greenback.”
US dollar slumped from three-months high, spurred by negative sentiment that surrounds the latest release of employment report from the United States. According to report, Nonfarm Payrolls came in at only 311,000 for the month of February. Although the latest data was higher than expected reading of 205,000, it shows significant depreciation when compared to January’s reading of 504,000. This has
13-03-2023 08:34
Gold price rebounds, only temporary?
“Jobless Claims ticks up, halting greenbacks ascend temporarily.”
US dollar paused its recent rally, eased slightly from three-months high after total Jobless Claims in the US implied possible softening in labour market conditions. Last week, Initial Jobless Claims rose by 211,000, slightly higher than forecast of 195,000 and the week prior’s reading of 190,000. Nonetheless, with overall optimism spurred by Federal Reserve remains intact, the losses experienced by US dollar were
10-03-2023 07:45
US dollar clings onto its gains while waiting for NFP.
“Market participants waits for the release of Nonfarm Payrolls to gauge greenback’s mid-term trend.”
US dollar cling onto its gains near three-months high while investors shifts their focus on US Nonfarm Payrolls report. Prior, the greenback received higher demand after Federal Reserve Chair Jerome Powell commented on potentially faster interest rate hikes to curb high inflation in the US. He noted that Fed will need to put more efforts in response to recent strong data which came in
09-03-2023 09:22
GBPUSD slumped, more losses ahead?
“Testimony from Fed suggests more rate hikes due to stubbornly high inflation in the US.”
Greenback hits three months high against other major currencies after Federal Reserve Chairman Jerome Powell provided his testimony. During the session, Powell commented that Fed may raise interest rates more than expected and warned that bringing back inflation to 2% will take a long time. In addition, he also noted that they are prepared to initiate larger rate hike if upcoming data suggests the
08-03-2023 06:45
USDCHF subdued, waiting for Powell testimony.
“Powell testimony will bring significant impact upon US dollar’s long-term perspective.”
Greenback remains subdued on Tuesday as market participants wait for testimony by Federal Reserve Chair Jerome Powell. Investors will focus on further signal from Powell with regards to Fed’s potential policy guidance in combating high inflation in the US. Although several Fed officials has voiced out their concern on inflation and calls for more rate hikes, investors will require a confirmation
07-03-2023 07:43
