Market Outlook

“Risk appetite increases due to lack of catalyst.” The US dollar slipped against other major currencies on Tuesday, trimming prior gains as investors continued to cash out their profits. Economists postulate that recent retracement is likely to be temporary as the market lack of new catalyst to push the currency higher. Nonetheless, US dollar is expected to find its support in the mid to

“Federal Reserve is one of the most aggressive central banks in combating flaring inflation.” While greenback experienced slight depreciation, the currency remains hovered near 20-years high during European trading hours. Market sentiment shifted dramatically towards the currency after Federal Reserve Chair Jerome Powell cemented the course for further rate hikes. Although Powell refuted

“The pair losses its grip, its lowest level in 4 years.” Risk aversion continues to take the lead, pushing Euro to its lowest level since January 2018. Geopolitical tension remains at the forefront as European economy may suffer the most from Russia-Ukraine crisis. Recently, European Union has proposed a comprehensive embargo on Russia, hoping to stop importing oil from the country by the

“BoE dovish tilt continues to weigh upon pound sterling.” Bear market continued their agenda upon pound sterling despite recent rate hike from Bank of England last week. During the latest policy meeting, BoE maintained their forward guidance, deeming further policy tightening remains a “possibility”. However, the central bank cut its medium-term inflation forecasts due to ongoing risk

“China lockdown and economic tension in Europe threaten the market.” The financial market slumps into turmoil as equities slid further into oblivion while greenback touches a two-decade high. A series of hawkish signals delivered by the Federal Reserve switched investors’ perceptions, piloting their focus towards the greenback. Subsequently, China’s latest trade data for April came in

“China exports slowed; imports flatten in April.” Greenback soared to its highest level in two decades as traders seeks for safety due to global economic slowdown concerns. Earlier today, China latest data shows slower export growth since June 2020, coming in at single digit of 3.9% for April. The data has raised traders’ eyebrows as repercussions from recent lockdown began to slip into

“No end in sight for coronavirus infection in Beijing – said locals.” Beijing local government began to shut down public transport and extended restrictions on public venue last Wednesday. The effort was taken to contain coronavirus infections while at the same time, avoiding the same fate bestowed upon Shanghai – lockdown which lasted more than a month. Dozens of new cases pop up

”Powell: We are not considering 0.75% rate hikes for now.” Federal Reserve delivered their monetary policy as expected, raising interest rates by 50 basis points to a range of 0.75% - 1.00%. Concurrently, they announced to start trimming their massive balance sheet next month, a calculated move to limit inflation from derailing US economic momentum. In the press conference, Fed Chair

“US GDP slumped by 1.4% during the first quarter.” Greenback shies away from its recent 20-year high as risk sentiments began to improve on the final day of trading for the month. Yesterday, investors were delivered with disappointing news as recent economic data shows significant contraction in terms of economic growth. Preliminary reading of Gross Domestic Product for first quarter came

“Australia’s CPI rose significantly in the first quarter.” The Australian dollar managed to recover from the downside on yesterday due to the release of regional economic data which sparks fresh demand. Australia Bureau of Statistics reported that Consumer Price Index for first quarter rose 2.1%, its fastest pace in two decades. The data sparked speculation that Reserve Bank of