Asia Roundup: Antipodeans poised for monthly decline, dollar eases against yen despite upbeat Chinese manufacturing PMI, markets assess Trump-Biden debate - Wednesday, September 30th, 2020
America’s Roundup: Dollar gains after Fed upgrades economic outlook, Wall Street ends mixed, Gold gains,Oil up more than 4% as U.S. stockpiles fall, hurricane hits output-September 17th,2020
America’s Roundup: Dollar eases from two-month high as equities rally,Wall street rises,Gold holds steady, Oil up 1% on economic hope; virus fears check price gains-September 29th,2020
America’s Roundup: Dollar holds strong gains against eruro,Wall Street closes lower, Gold touches six-week low, Oil edges higher after U.S. crude, fuel stockpiles draw down-September 24th,2020
Europe Roundup:Euro edges higher as investors await Fed statement, European stocks gains,Gold rises, Oil jumps above $41 as storm hits U.S. output, inventories drop-September 16th,2020
America’s Roundup: Dollar slides as risk sentiment rises on U.S. stimulus hopes, Wall Street surges, Gold dips,Brent pares losses, U.S. crude up on stimulus hopes-October 1st,2020
Asia Roundup: Antipodeans at multi-week lows on additional monetary easing expectations, dollar rallies amid coronavirus concerns, Asian shares plunge amid fading global recovery hopes - Thursday, September 24th, 2020
Europe Roundup: Euro dips as Fed outlook lifts dollar ,European stocks skid lower, Gold slips, Oil steady as demand worries revive, crews return to U.S. Gulf rigs-September 17th,2020
America’s Roundup: Dollar gains ground on economic concerns, Wall Street gains on stimulus hopes, Gold turns positive from 2-mth low, Oil falls on fuel demand growth concerns as coronavirus lingers-September 25th,2020
Asia Roundup: Aussie halts 6-day losing streak as Westpac revises RBA rate call, dollar steadies below 2-month high as investors eyes on Trump-Biden debate, Asian shares rally - Monday, September 28th, 2020
Asia Roundup: Kiwi slumps to 4-week trough as RBNZ hints at further easing, Aussie plunges as Westpac expects monetary easing by RBA, Asian shares volatile - Wednesday, September 23rd, 2020
Europe Roundup: Euro dips against dollar as investors seek safety after U.S. debate, European stocks slip, Gold slips, Oil extends losses as rising virus cases spur demand worries-September 30th,2020
America’ Roundup: Sterling regains lost ground after BoE negative rate talk,Wall Street falls ,Gold slips ,Oil rises 2%, reverses loses as OPEC+ addresses market weakness-September 18th,2020
Europe Roundup: Sterling hits one-week high as Brexit talks begin,European shares slip, Gold edges up, Oil falls as virus count mounts, U.S. debate looms-September 29th,2020
Asia Roundup: Kiwi plunges ahead of RBNZ policy decision, Aussie slumps on RBA Debelle's comments, greenback holds near 6-week high as investors eye Fed Powell's testimony - Tuesday, September 22nd, 2020
America’s Roundup: Dollar falls against the yen,Wall Street ends lower,Gold rises, Oil flat as Libya developments counter OPEC+ boost-September 19th,2020
Asia Roundup: Dollar index hits 14-year high, euro falls to 21-month low as Fed increases 2017 rate hike projections, investors eye BoE policy outcome - Thursday, December 15th, 2016
Economic Data Ahead
Key Events Ahead
DXY: The dollar rallied to multi-week highs versus its major peers after the Federal Reserve raised rates and boosted the number of projected interest rate hikes for 2017. The greenback against a basket of currencies traded 0.1 percent up at 102.30, having hit a fresh 14-year high of 102.62 earlier in the session. FxWirePro's Hourly Dollar Strength Index stood at 115.59 (Highly Bullish) by 0500 GMT.
EUR/USD: The euro hit a 21-month low below the 1.0500 handle, as the greenback boosted across the board after the Federal Reserve raised interest rates for the first time in a year and projected more interest rate hikes for 2017. However, the major attempted a minor recovery, regaining some ground to trade just above the 1.0500 level. Moreover, monetary policy divergence between both continents and hawkish Fed statement, which signaled acceleration in the Fed’s rate hike prospects for next year, weighed on the euro bulls sentiment. The European currency trades 0.2 percent down at 1.0515, having touched a low of 1.0468, its lowest since Mar. 2015. FxWirePro's Hourly Euro Strength Index stood at 60.51 (Bearish) by 0400 GMT. Investors will continue to digest the Fed decision, ahead of flash manufacturing PMI from the Eurozone economies and the U.S. inflation figures. Immediate resistance is located at 1.0573 (5-DMA), a break above targets 1.0620 (21-DMA). On the downside, support is seen at 1.0468 (Session Low), a break below could drag it lower 1.0400.
USD/JPY: The dollar rallied above the 117.00 handle to hit a fresh 10-month high after the Federal Reserve hiked the federal funds rate to a target range of 0.50 percent and 0.75 percent and signaled a faster pace of increases in 2017. The relatively hawkish Fed stance came as the central bank adapted to the U.S. president-elect Donald Trump administration's promises of tax cuts, spending, and deregulation. The major trades 0.4 percent higher at 117.48, having touched an early high of 117.85, its strongest since early Feb. FxWirePro's Hourly Yen Strength Index stood at -115.70 (Highly Bearish) by 0400 GMT. Investors will continue to track board based market sentiment, ahead of the U.S. CPI figures for further momentum on the pair. Immediate resistance is located at 118.00, a break above targets 118.30/ 118.60. On the downside, support is seen at 115.97 (5-DMA), a break below could take it near 114.89 (10-DMA).
GBP/USD: Sterling slumped to a fresh 2-week low, as the greenback continued to rise following Fed interest rate hike and unexpectedly hawkish Dots plot chart. However, the major is seen making a minor recovery as investors now turn attention their attention towards the Bank of England monetary policy decision due later in the day. Sterling trades 0.2 percent down at 1.2540, after declining as low as 1.2513, its lowest since Dec. 1. FxWirePro's Hourly Sterling Strength Index stood at 55.21 (Bullish) by 0400 GMT. Investors’ will closely watch the UK retail sales data, ahead of BoE interest rate decision, where it is expected to refrain from changing rates or its quantitative easing bond-buying programme. Immediate resistance is located at 1.2600, a break above could take it over 1.2634 (10-DMA). On the downside, support is seen at 1.2500, a break below targets 1.2449 (Nov- 4 Low). Against the euro, the pound trades 0.04 percent lower at 83.82 pence, still within the sight of a 1-week high of 83.42 pence hit on Tuesday.
AUD/USD: The Australian dollar declined to a 2-week low after the FOMC policy decision, however, it recovered some ground to trade above the 0.7400 handle following better-than-expected Australian jobs report. The data showed employment rose a net 39,100 in November, beating forecasts of a 20,000 gain, while the unemployment rate edged up to 5.7 percent, from a three-year low of 5.6 percent. Separately, another survey showed Australia's consumer inflation expectations in December rose 3.4 percent, versus previous 3.2 percent, boosting bullish sentiment around the major. The Aussie trades 0.2 percent higher at 0.7420, retreating from an early low of 0.7383, it’s lowest since Nov. 16. FxWirePro's Hourly Aussie Strength Index stood at 31.72 (Neutral) by 0500 GMT. Markets will continue to absorb Australia's employment report, ahead of the U.S. consumer price index and unemployment benefit claims data. Immediate support is seen at 0.7370 (Dec 1 Low), a break below could drag it near 0.7350/0.7311. On the upside, resistance is located at 0.7468, a break above targets 0.7500.
NZD/USD: The New Zealand tumbled, extending losses to hit a fresh 10-day low, after the Fed raised the interest rate and hinted at adopting a faster pace of tightening than investors had anticipated. On Wednesday, the major rose as high as 0.7238 to touch a 1-month high, however, it eased to 0.7116 following FOMC decision. The Kiwi trades 0.3 percent lower at 0.7097, after falling to a low of 0.7076 earlier in the session, it’s lowest since Dec. 5. FxWirePro's Hourly Kiwi Strength Index was at -77.96 (Slightly Bearish) by 0500 GMT. The major will be driven by overall market sentiment, ahead of series of U.S. economic data and domestic current account report for further direction on the major. Immediate resistance is located at 0.7160, a break above could take it near 0.7200. On the downside, support is seen at 0.7066 (Nov 29 Low), a break below could drag it lower 0.7050.
Asian shares tumbled, as a rally in the dollar and the U.S. bond yields following Federal Reserve interest rates hike, weighed on emerging market currencies.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 1.2 percent.
Tokyo's Nikkei advanced 0.5 percent at 19,345.74 points, Australia's S&P/ASX 200 index fell 0.78 percent to 5,540.90 points and South Korea's KOSPI was trading 0.1 percent up at 2,039.40 points.
Shanghai composite index declined 0.6 percent to 3,120.33 points, while CSI300 index was trading 0.9 percent lower at 3,348.46 points.
Hong Kong’s Hang Seng was trading 1.87 percent down at 22,036.45 points. Taiwan shares shed 0.1 percent at 9,360.35 points.
Crude prices steadied, after declining more than 1 percent in the previous session, as prospects of a tighter fuel market in 2017 due to planned production cuts boosted market sentiment. International benchmark Brent crude was 0.4 percent higher at $53.93 per barrel by 0356 GMT, having hit a 6-day low of $53.55 in the previous session. U.S. West Texas Intermediate crude rose 0.4 percent at $50.94 a barrel, after falling as low as $50.65 on Wednesday, its lowest since Dec 8.
Gold prices fell to a fresh low in more than 10 months as the dollar rallied after the U.S. Federal Reserve raised interest rates for the first time in a year and indicated further rate hikes for 2017. Spot gold was trading 0.04 percent lower at $1,142.68 an ounce by 0402 GMT, having touched a low of 1,134.72 an ounce earlier in the session, its lowest since Feb. 3. U.S. gold futures dropped nearly 2 percent to $1,141.80 per ounce, having slumped to $1,136.4 an ounce earlier in the day, their lowest since Feb. 1 and biggest percentage fall in one month.
The 10-year U.S treasury yield stood at 2.5727 percent higher by 0.05 bps, while 5-year yield was up by 0.051 bps at 2.0447 percent.
The Australian government bonds witnessed a heavy sell-off as investors moved away from safe-haven buying after the Federal Reserve in its last monetary policy statement of 2016 raised short-term interest rate by 25 basis points and signaled a faster pace of interest rate hike next year. The yield on the benchmark 10-year Treasury note rose more than 8 basis points to 2.89 percent, the yield on 15-year note jumped 11 basis points to 3.36 percent and the yield on short-term 2-year bounced 6 basis points to 1.91 percent.
The New Zealand government bonds plunged as the U.S. Federal Reserve presented a hawkish outlook in its last monetary policy meeting for 2016 late Wednesday. The yield on the benchmark 10-year bond rose more than 10 basis points lower at 3.42 percent (highest level in 2016), the yield on 7-year note jumped 13 basis points to 2.98 percent and the yield on short-term 2-year note bounced 9 basis points at 2.27 percent.
Canadian government bond prices moved lower across a flatter yield curve in sympathy with U.S. Treasuries. The 2-year fell 5.5 Canadian cents to yield 0.807 percent and the benchmark 10-year declined 28 Canadian cents to yield 1.789 percent. On Tuesday, the 10-year yield touched its highest since June 2015 at 1.794 percent.