Yen strengthened modestly in quiet Asian trading, with many regional centers closed for Lunar New Year. Liquidity remains thin, keeping most major pairs confined within last week’s ranges. Despite limited volatility, Japanese assets offered a subtle signal of resilience. Japan’s government bonds extended gains after the first JGB auction since the snap election passed without […]
Aussie is mildly firmer in quiet trading, though momentum remains restrained. Broader market conditions are subdued, with most major pairs still trapped inside Friday’s ranges, reflecting wait-and-see stance. RBA February meeting minutes are due tomorrow, followed by January employment data on Thursday. These releases will help shape expectations for whether the central bank is preparing
Trading in Asian markets was subdued at the start of the week, with activity dampened by the U.S. holiday and the approach of Lunar New Year. Many regional desks are already lightly staffed, leaving liquidity thin and conviction limited. The holiday mood has kept volatility compressed. Major currency pairs and crosses are confined within Friday’s
Japan’s gross domestic product expanded a seasonally adjusted 0.1 percent on quarter in the fourth quarter of 2025, the Cabinet Office said in Monday’s preliminary reading. That missed expectations for an increase of 0.4 percent following the downwardly revised 0.7 percent contraction in the three months prior (originally -0.6 percent). On an annualized basis, GDP
There was no single, dominant theme in currency markets last week. Instead, price action reflected a mix of cross-asset divergences. Dollar ended as the worst performer, despite the fact that Fed expectations barely shifted following high-profile releases of non-farm payrolls and CPI. Meanwhile, US Equities experienced volatility, particularly around renewed AI disruption fears, yet there
Forex markets remained relatively steady following the January US CPI release, with the slightly softer-than-expected headline reading failing to trigger major repositioning. The moderation in inflation was largely driven by lower energy prices, while underlying pressures showed only gradual improvement. The data did little to materially alter Fed expectations. A March hold is effectively locked
Risk aversion reasserted itself across global markets overnight as NASDAQ led US equities sharply lower once again, with AI disruption fears resurfacing as the primary catalyst. Asian markets followed and traded broadly lower. The vulnerability in equities was mirrored in fixed income markets. Safe-haven demand pushed US Treasuries higher, sending the 10-year yield tumbling and
Forex markets are relatively subdued today, with most major pairs and crosses confined within yesterday’s ranges. After recent volatility, positioning appears balanced as traders await a stronger catalyst to drive the next move. Sterling is modestly firmer despite weaker-than-expected UK GDP data. December growth came in soft and the fourth quarter barely managed a positive
Risk sentiment was mixed in Asia today as Japan returned from holiday with Nikkei extending its post-election surge and briefly breaching the 58,000 mark for the first time on record. The breakout, however, lacked follow-through, with the index quickly trimming gains and hinting that near-term momentum may be stretched. Elsewhere in the region, trading was
Japan remained the focal point of the Asian session as the Nikkei surged to yet another record high, extending gains fueled by post-election political optimism. What stood out, however, was that Yen extended its recovery alongside rising equities, a notable shift from its usual role as a pure risk proxy. The currency’s resilience suggests a
Dollar is softer across the board today as its recent rebound appears to be losing momentum. The move lacks a single defining trigger, instead reflecting a convergence of sentiment shifts and near-term positioning adjustments. One important backdrop is the stabilization in risk appetite. After markets spent much of last week grappling with AI-related disruption fears
Japan dominated the Asian session as markets reacted to Prime Minister Sanae Takaichi’s decisive election victory over the weekend. The scale of the win, which delivered a supermajority in parliament, triggered a powerful relief rally in domestic equities and set the tone for the broader region. Nikkei surged to a fresh record above 57,000 before
The value of overall bank lending was up 4.5 percent on year in January, the Bank of Japan said on Monday – coming in at 663.816 trillion yen. That was in line with expectations and up from the downwardly revised 4.3 percent increase in December (originally 4.4 percent). Excluding trusts, bank lending was up an
After days dominated by fears of an intensified tech rout and structural disruption from artificial intelligence, markets ended the week on a steadier footing. While volatility picked up meaningfully, Friday’s price action made clear that talk of an imminent trend reversal remains premature. Investors responded to midweek stress not by abandoning equities wholesale, but by
Market sentiment appears to be stabilizing after this week’s sharp tech-led selloff. US equity futures are edging higher and cryptocurrencies are recovering modestly, suggesting the worst of the near-term liquidation pressure may have passed, at least for now. The calmer tone is feeding through into FX markets, where activity has slowed markedly. Most major pairs
Risk aversion intensified overnight, with US equities posting broad-based losses. DOW and S&P 500 both closed more than 1.2% lower, while NASDAQ underperformed again, sliding nearly 1.6%. Notably, S&P 500’s break below near-term support zone around 6800 is technically significant. It suggests the tech-led selloff may be spilling over into more traditional sectors, raising the
The average of household spending in Japan was down 2.9 percent on month in December, the Ministry of Internal Affairs and Communications said on Friday – coming in at 351,522 yen. That missed forecasts for a fall of 1.3 percent following the 6.2 percent jump in November. On an annual basis, household spending slipped 2.6
