Germany Producer Price Index (YoY) came in at 0.7% below forecasts (1%) in February
Germany Producer Price Index (YoY) came in at 0.7% below forecasts (1%) in February Source link
Germany
Dollar Stays Weak as Markets Await Fed Guidance, Yen Softens After BoJ Hold
Dollar remains under pressure as markets await FOMC rate decision and, more crucially, the updated economic projections. While the central bank is widely expected to hold rates steady at 4.25-4.50%, traders are looking for any signs that Fed officials are adjusting their outlook in response to mounting trade tensions. Meanwhile, US stocks saw another selloff
Canadian Dollar Gains on Inflation Surprise, But Growth Risks Keep Traders Cautious
Canadian Dollar edged higher in early US session after much stronger-than-expected inflation data. However, Loonie quickly lost momentum, as investors remained cautious about Canada’s broader economic outlook, particularly in the face of rising trade tensions with the US. While higher-than-expected inflation reduces the likelihood of another immediate rate cut, Canada’s economy is under serious pressure
Asian Markets Stay Firm, German Vote and Canadian Inflation in Focus
Risk appetite in Asian markets has been solid this week, support by optimism surrounding China’s latest measures to boost domestic consumption. Hong Kong stocks continue to lead gains in the region. Meanwhile, in the forex markets, both New Zealand and Australian Dollars are holding firm, though the Aussie is slightly lagging due to rising trade
Dollar Edges Lower Post-Retail Sales, But Cautious Traders Keep Selling Momentum Limited
Dollar edged lower in early U.S. trading following weaker-than-expected retail sales data. However, the downside pressure remained limited, as investors took comfort in the fact that February’s sales growth marked a return to expansion after contraction in January. The data helped ease fears of an extended downturn in consumer spending, with markets breathing a sigh
Currency Markets Consolidate as Trader Start Repositioning for Tariff Battles in April
The past week in the currency markets was marked more by consolidation than decisive moves, even as risk aversion deepened in US stock markets. Dollar’s selloff slowed and turned into a modest recovery, but there was no clear momentum for bullish trend reversal. Sentiment remained fragile, weighed down by constantly escalating trade tensions and the
Euro Rallies as Germany Said to Reach Landmark Debt Deal to Boost Growth
Euro jumped notably higher following reports that Germany’s political leaders have reached a crucial agreement on the historic debt deal. According to sources close to the negotiations, Chancellor-in-waiting Friedrich Merz and the Greens have agreed on a massive increase in state borrowing, just days before a decisive parliamentary vote next week. While some details are
Euro Rally Extends as German Greens Eye Defense Spending Deal This Week
Euro’s rally continues after a brief pause, boosted by signs of political breakthrough in Germany over major defense and infrastructure spending. Consensus appears to be emerging around the large-scale funding deal, a game-changer toward bolstering Europe’s economic and defense resilience, especially amid ongoing geopolitical conflicts in Ukraine. Germany’s Green party is reportedly prepared to reach
Risk Sentiment Dips in Europe But Euro Holds Steady
Risk sentiment took a mild turn to the downside in European markets today, with DAX pulling back from last week’s solid gains. Investors are watching developments in Germany’s political arena, where Greens have voiced opposition to proposals by CDU’s Friedrich Merz for a sweeping overhaul of debt rules, including a massive increase in state borrowing
Euro and DAX Surge on German Spending Boost, Dollar Struggle Continues after Poor ADP
Investor sentiment in Europe is exceptionally upbeat today, with German stocks leading the rally as DAX surges over 3%, breaking above the 23k mark. Euro also rallies across the board with solid momentum, with help from rise in Germany’s benchmark yield, the overall positive sentiment, as well as a struggling Dollar. The boost to European
Euro Stays Strong, While Markets Stabilize on China’s Stimulus and Hopes for Trump’s Tariff Compromise
Despite the steep selloff on Wall Street overnight, sentiment appears to have improved somewhat in Asia. Investors found reasons for optimism as China set a 2025 GDP growth target of around 5% and announced stimulus measures to counter escalating tensions with the U.S. In a notable shift, Beijing raised its budget deficit target to roughly
Dollar Gathers Momentum, Gold Cools Off, Market Jitters Ahead?
Dollar appears to be gathering steam for a stronger, sustainable near-term rebound, although the precise catalyst remains unclear. One contributing factor an undercurrent of risk aversion, which is reflected in the broad selloff in the Australian and New Zealand Dollars. Yet, the overall market picture is mixed, as US stock futures inch higher and Treasury
Euro Fades After Brief German Election Boost
Euro’s brief post-election rally faded quickly, as investors welcomed CDU/CSU’s victory but remained cautious due to lingering uncertainties around coalition formation and fiscal policy. While a relatively centrist government comprising CDU and the Social Democrats would provide stability, challenges surrounding the “debt brake” reform and defense spending continue to cloud the outlook. A coalition with
EUR/USD gathers strength above 1.0450 as conservatives win German election
EUR/USD edges higher to 1.0480 in Monday’s early Asian session, up 0.18% on the day. Germany’s conservatives won the election, AfD leaped to second place, exit polls showed. US February PMI data came in weaker than expected, weighing on the US Dollar. The EUR/USD pair attracts some buyers to near 1.0480 during the early Asian
Muted Forex Action as Traders Overlook Data, Await RBNZ Cut
Forex markets remained subdued today, with muted reactions to key economic data. Dollar held broadly higher as traders focused on the US-Russia peace talks, where both sides agreed to continue discussions on ending Russia’s invasion of Ukraine. However, meaningful progress is unlikely without direct involvement from Ukraine and European nations, keeping market uncertainty elevated. Canadian
Dollar at Crossroads: Rebound Possible, But Bearish Risks Intensify
Dollar closed the week broadly lower, with the only exception being its slight gains against the even weaker Yen. Risk-on sentiment dominated global markets, fueling strong rallies in equities across the US, Europe, and Hong Kong, which in turn kept the greenback under pressure. The greenback had previously enjoyed a tariff-driven boost earlier in the
CAD Steady After BoC Cut, DOW Nears Record Ahead of FOMC Hold
Canadian Dollar is steady after BoC delivered its sixth consecutive rate cut, lowering its policy rate by 25bps to 3.00% as expected. The pace of easing has slowed from December’s 50bps reduction, reflecting a more measured approach as interest rate sits inside neutral zone. BoC explicitly warned of risks stemming from potential US tariffs, noting