USD/JPY – China Jitters Propel Yen Higher

After strong gains last week, the Japanese yen has extended its gains on Monday. USD/JPY is trading at 138.23 in the European session, down 0.67%. Yen jumps on China unrest China has applied its Covid-zero policy with a heavy hand, but Covid cases continue to rise nonetheless. The mass lockdowns have triggered widespread protests, which […]

Stock Slide Amid China Unrest

It’s been a pretty quiet start to the trading week, with the negative session in Asia continuing into Europe and the US ahead of the open on Wall Street. Chinese stocks have been hit particularly hard amid unrest over Covid restrictions. The protests really do highlight how increasingly frustrated the public is becoming with the […]

Will Eurozone Inflation alter ECB Policy Expectations?

With Eurozone inflation surging to 10.6% year-on-year in October, investors have shifted their bets to another 75bps hike when the ECB meets on December 15, and last week’s meeting minutes added credence to that view. This week, traders will probably turn their gaze to the preliminary inflation data for November, due out on Wednesday at […]

Sunset Market Commentary

Markets Chinese mass protests over President Xi Jingping’s zero Covid-policy dominate today’s headlines. The rare civil unrest was triggered by a deadly apartment fire where pandemic control barriers etc hampered civil services to extinguish the fire while residents in the region were already for three months in isolation. Another issue is related to unpaid workers […]

US Jobs Data and Powell's Speech Eyed as Dollar Rally Stalls

There’s a storm of critical events this week that will shape the US dollar’s trajectory, including a speech by the Fed boss on Wednesday and the latest employment report on Friday. The Fed chief could strike a hawkish tone, while most indications suggest the US labor market is still in good shape. As for the […]

China Markets Rally on Hope for Faster Reopening

Market movers today The Chinese National Health Commission will host a briefing at 3pm Beijing time (08:00 am CET). However, they regularly hold briefings and they do not include senior political officials, which would be expected if a bigger change was to be announced. The question is if we will see any hints of future changes, though, […]

Chinese COVID-19 Unrest, Hawkish Fed Comments Hit Sentiment

The week started with a selloff across global equities. Unrest in China due to protests against the Covid zero policy combined with the Federal Reserve (Fed) members’ hawkish comments led to an early week selloff in both Asian, European and US equities. In cryptocurrencies, it was another day of bankruptcy news. This time, the crypto […]

Dollar Recently Traded in Defensive and Still Looks Vulnerable to Bad Eco News

Markets In the absence of important eco data, the new China Corona outbreaks and central bank speak were the main drivers for trading yesterday. In the end, it turned out to be a risk-off session with US indices losing about 1.50%. Fed and ECB Governors sounded rather hawkish. Even ECB’s Lagarde admitted that the it’s […]

Risk Sentiment Improves as China Rebounds

Volatility could be the name of the game over the next few days due to the protests in China, speeches from Fed officials including Jerome Powell, and top-tier economic data. Investors received a taster early this morning with Asian stocks rallying as Chinese shares rebounded from the heavy selloff triggered by unrest over Covid restrictions. […]

Aussie Storms Higher

The Australian dollar has rebounded on Tuesday after a poor start to the week. In the European session, AUD/USD is trading at 0.6737, up 1.28%. What goes down … can go right back up. This has been the story early this week for the Australian dollar, which tumbled 1.5% on Monday but has recovered most […]