Dollar is sharply lower today on risk appetite as global equities are boosted by strong Q3 earnings from US as well as expectation of more quantitative easing from Fed ahead. Dollar index dives through 76.92 support to resume recent down trend to as low as 76.37 so far. Pressure on View full post on Action Insight [...]
Selloff in Aussie suggests that investors are obviously disappointed by the RBA’s decision to keep the cast rate unchanged at 4.5%. Given the hawkish comments from policymakers over the past weeks, the decision caught the market by surprise. Recent soft data probably made the central bank more cautious in implementing View full post on Action Insight [...]
The market has priced in a 64% chance that the RBA will raise the policy rate by +25 bps to 4.75% at tomorrow’s meeting. While recent economic data released in Australia softened a bit, hawkish comments from Governor Glen Stevens fueled expectations that the central bank will resume tightening in View full post on Action Insight [...]
While there have been rigorous speculations over the past week that the Fed will further expand the balance sheet to stimulate recovery, we expect the central bank will maintain the policy stance to keep interest rates at exceptionally low levels for an extended period time and to maintain the plan View full post on Action Insight [...]
The latest set of macroeconomic data from China indicates domestic demand in the world’s second largest economy, as well as the biggest growth driver, remained resilient in August. This soothed market concerns that the government’s cooling measures implemented earlier in the year would cause an abrupt brake on economic expansion. View full post on Action Insight [...]
At the emergency held today, the Bank of Japan announced additional easing measures to boost Japan’s economic recovery. The BOJ introduced a 6-month term in the fixed-rate funds-supplying operation against pooled collateral and substantially increased the amount of funds to be provided through the operation. This is the first unconventional View full post on Action Insight [...]
Sterling was the only major currency that failed to participate in this week’s risk rally so far. And indeed, the pound has weakened quite noticeably against dollar, euro and swissy. Euro’s rebound on bond auctions was one of the major factors. But sterling’s weakness could also be attributed to the View full post on Action Insight [...]
Yen extends rally on risk aversion as global stocks tumble on concern of slow down in economic recovery. The sharp -2.7% fall in Nikkei, which was triggered by disappointing data from China, was followed by broad based weakness in European stocks. Major European indices are down over -1.5% so far View full post on Action Insight [...]
The forex markets are steady today as traders await EU bank stress test result as well as UK Q2 GDP preliminary release. The Committee of European Banking Supervisors will release results of the stress tests on European banks today at 1600 GMT. 91 banks were tested, which represents 65% of View full post on Action Insight [...]
After the sharp -8.44% selloff against USD (and -7.21% for the trade-weighted index), Australian dollar’s decline stabilized in June but huge volatility remained. Risk appetite has been the main driver of movement in Aussie, as well as other risk-sensitive assets, recently. Given concerns over global economic slowdown, slowdown in FX View full post on Action Insight [...]