Market Outlook

“Federal Reserve’s speech in focus as recent economic data from US shows substantial decline in its performance.” During late Asian trading session, the pair of USDCAD begins to stage a rebound, following the footprints on the US dollar index. Investors will now pay attention to upcoming speech by Fed Chair Jerome Powell after US economic activities and wage inflation shows substantial

“Strong sell off kick starts the week for greenback as sentiment is geared towards other assets in the market.” US dollar opened the week with strong supply, touching multi months low as market mood remains geared towards risky assets. While last week’s Nonfarm Payrolls report came in better than expected, it has failed to boost the currency as Services PMI that was released later in

“Holiday season failed to boost Germany’s consumer spending; towing euro lower.” Euro head towards the south soon after Germany released their economic data which may point towards depressed conditions. For November, both Retail Sales and Factory Orders underperformed even though the country is heading towards the holiday season. Likewise, US ADP latest report shows strong hiring in the

“Nasdaq thread water as the market waits for more signals from Federal Reserve.” Nasdaq remains muted following the resumption of trading while investors await more market signal from Federal Reserve. Likewise, worries over China’s economic slowdown continues to weigh on global sentiment as recent boom in Covid cases may bring significant impact over consumer spending and output.

“Inflation continues to stay stubbornly high, further interest rate hike prompt recessionary risks.” S&P500 notched in its worst slide since 2008 as the index fell more than 1% due to selloff on technology, energy, and industrial stocks. Sentiment among investors remain bleak as Federal Reserve continues its fight against stubbornly high inflation since early this year. Regardless,

“US posted positive developments in terms of labour market, prompting a shift in market sentiment.” GBPUSD surrendered its gains, sliding down towards multi weeks low after latest data from US lends some support to greenback. According to reports, the number of unemployment benefits filing increased less than expected, signalling tight labour market with more room for further economic

“US dollar at the brink while traders turn to risky assets.” US dollar edges lower as traders begin to seek for risky assets, forcing USDCHF to slump lower into the oblivion. The currency took yet another step back even as US consumer Confidence rose to an eight-month high for December. Later today, all eyes will be fixated upon the release of US third quarter GDP as well as weekly

“Bank of Japan’s latest announcement continues to ripple through the market for second day.” Japanese yen extended its gains for the second day after Bank of Japan announced a surprise move during its policy meeting. On Tuesday, Bank of Japan decided to tweak its yield curve by allowing long-term yields move 50 basis points either side of its 0% target. The target, which is wider than

“Latest economic data form New Zealand pose worrisome outlook for investors.” NZDUSD lurked in the lower boundaries, off from recent high due to pessimistic economic data from the region. For December, New Zealand’s Business Confidence plummet to record low of -70, spurred by worries towards possible recession in 2023. Nonetheless, its losses were limited as for now due to possible

“US equities suffered from significant selloff as recession fear make a comeback.” S&P500 tanked as recession fears grow due to recent release of retail sales data. According to US Census Bureau, Core Retail Sales shrank by -0.2%, way worst than expectation of 0.2%. At the same time, latest survey from New York Federal Reserve Bank shows significant slump in shipments as well as new