Sterling weakened slightly today as markets digested last night’s abrupt resignation of OBR Chair Richard Hughes, who stepped down following the premature release of budget documents last week. Investors viewed the episode as destabilizing for an institution designed to promote fiscal transparency and market confidence. There was also a delayed reaction to UK Prime Minister […]
Market sentiment steadied across Asia today, with most assets drifting in tight ranges after Monday’s volatility. The overnight selloff in the US was modest, and fears that Japan-led risk aversion would spill aggressively into global markets did not materialize. While pockets of unease lingered—particularly in the tech space following Bitcoin’s slump—the broader tone has remained
Dollar fell broadly today, though the move lacked a clear single trigger. Fed expectations barely shifted, with December cut bets ticking up only marginally to 87%, not meaningfully different from last week. US yields were also steady to firmer, with 10-year Treasury yields recovering back above the 4% mark, offering no obvious impetus for a
Risk aversion returned to Asia at the start of December, lifting Yen sharply across the board. The shift in sentiment coincided with a notable surge in Japanese government bond yields, with the 10-year jumping nearly 0.07 and breaking above 1.87%, its highest level in more than 15 years. . A key catalyst was Governor Kazuo
Markets were broadly quiet today as holiday conditions dominated trading, with liquidity thinning further after a major technical issue at the Chicago Mercantile Exchange brought several platforms to a halt. The CME said trading had come to a standstill due to a cooling problem at one of its data centers. The outage affected Globex futures
Japan’s data releases were surprisingly strong today, with both industrial output and retail sales showing impressive gains. Combined, they paint a picture of an economy that is slowly regaining momentum on both production and consumption fronts. Yet the Yen remains notably weak, failing to capitalize on the firmer-than-expected numbers. One of the key constraints remains
Trading turned subdued as markets moved into the U.S. session, with activity expected to slow further as Thanksgiving approaches. Liquidity conditions were already thinning in early trade, and the muted tone across majors reflects a market unwilling to take fresh positions before the long weekend. Despite the quieter backdrop, broader directional themes remain unchanged. Dollar
New Zealand Dollar’s broad-based rally extended through today’s Asian session as a run of solid domestic data continued to bolster confidence in the country’s recovery. Strong retail sales in Q3 suggested the rebound is already underway, while the surge in business confidence and activity pointed to a more durable upturn. Together, the indicators painted a
Risk-on sentiment extended through Asian session, from intensifying bets on December Fed rate cut. The shift in sentiment sent US stocks higher overnight, and pushed 10-year yield briefly below 4% handle. Kiwi and Aussie are the biggest beneficiary of this backdrop, with both additionally supported by domestic developments. Kiwi is the standout performer as markets
Dollar weakened notably against Euro and Yen in early U.S. session, tracking another leg lower in Treasury yields as markets absorbed softer-than-expected September retail sales. While the report was backward-looking, it reinforced the direction of travel for consumption and added incremental weight to the view that demand is steadily cooling. PPI, meanwhile, was nor alarming.
Dollar is trading on the back foot today as markets add to bets on a December Fed rate cut, extending the repricing that began late last week. The shift was triggered by New York Fed President John Williams, who surprised markets last Friday by saying he sees room for a further “near-term adjustment,” reversing the
Global markets closed last week on an uncertain footing. While bears appeared to have an upper hand, the control was never firmly gripped. Conviction was relatively thin as traders were reluctant to commit decisively. The overall impression was of markets still searching for a coherent theme to latch onto. Equities in major centers reflected the
New York Fed President John Williams delivered the day’s biggest surprise, signaling that he sees scope for another rate cut in the near term. As head of the New York Fed — a permanent FOMC voter and a traditional bellwether for committee consensus — his comments dramatically shifted the policy conversation. Only yesterday markets were
Commodity currencies came back under pressure today as the burst of Nvidia-driven optimism evaporated almost as quickly as it arrived. After a strong start, major U.S. indexes staged a staggering reversal and closed sharply lower — marking the biggest midday turn since April. What triggered the shift remains unclear, but the message from markets was
Dollar strength faded mildly after the stronger-than-expected U.S. non-farm payroll report, as traders showed little appetite to extend the post-data rally. The muted reaction reflects a market that had already repriced aggressively after yesterday’s hawkish FOMC minutes, which pushed expectations for a December rate cut sharply lower. In that sense, much of the adjustment had
Investor sentiment turned decisively positive in Asian markets today, even as traders continued dialing back expectations for a December Fed rate cut following the hawkish tone in FOMC minutes released overnight. The shift in rate expectations would normally pressure risk assets, but momentum instead swung in the other direction thanks to a powerful catalyst out
Yen’s selloff accelerated again today despite repeated warnings from top Japanese officials that they are monitoring FX markets with a “strong sense of urgency.” The latest remarks came after Finance Minister Satsuki Katayama met BoJ Governor Kazuo Ueda and Economic Revitalisation Minister Minoru Kiuchi, where all sides reaffirmed their commitment to the 2013 joint agreement
