Market News

Chinese officials reviewing the country’s vast foreign exchange holdings have recommended slowing or halting purchases of U.S. Treasury bonds amid a less attractive market for them and rising U.S.-China trade tensions, Bloomberg News reported on Wednesday.

Major government bond yields hit multi-month highs on Wednesday, extending earlier gains on a report that Chinese officials have recommended slowing or halting purchases of U.S. government bonds.

Britain’s Prime Minister Theresa May will meet executives from major finance companies on Thursday to give them a clearer idea of what Britain’s divorce from the European Union will mean for the industry, two sources familiar with the matter said.

The Greenback got hit hard and was the main loser, not just of the morning London session, but of the day as well when rumors made the rounds that China may supposedly slow or even stop buying U.S. treasuries.

U.S. oil prices hit their highest since 2014 on Wednesday as OPEC-led production cuts and healthy demand helped to balance the market, but analysts warned of possible overheating.

The U.S. dollar skidded further to a six-week low against the Japanese yen on Wednesday after the Bank of Japan’s move to trim its government bond (JGB) purchases in the previous session stoked speculation it would ease its massive monetary stimulus.

Not a lot of data on the docket, so Asian session forex traders concentrated on pricing in yesterday’s headlines. Here’s what’s up!

The dollar extended losses against the yen on Wednesday after the Bank of Japan’s move to trim Japanese government bond (JGB) purchases in the previous session triggered speculation that it could begin tapering its massive, ultra-easy monetary stimulus.

Benchmark U.S. Treasury yields hit a 10-month high on Tuesday after the Bank of Japan tweaked its bond-buying program, while stocks in world indexes continued their flying start to the year.

The surprise moves by the BOJ earlier in the day kept the Japanese yen supported until the U.S. session while the dollar got back on its feet thanks to higher bond yields.

The COT report reveals that large players became more bearish on the Greenback, thanks mainly to improving bullish sentiment on the euro. Interestingly enough, the report also shows that CAD and AUD bulls were squeezed out.

The Canadian dollar edged lower against its U.S. counterpart on Tuesday as a stronger greenback offset higher prices for crude oil, one of Canada’s major exports.

Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week.

JPY just shrugged off the risk-on vibes and resumed its onslaught against its forex rivals. However, CHF wasn’t as lucky and ended up as the worst-performing currency of today’s morning London session.

Britain is expected to choose a new central bank chief this year to succeed Canadian Mark Carney, who will step down in June 2019, three months after the country’s scheduled exit from the European Union.

We’re hearing from a lot of FOMC members this week, folks! Which voices should you pay closer attention to this year?

Japanese government bond prices dipped on Tuesday, with yields on 20 to 40-year bonds hitting one-month highs, after the Bank of Japan reduced its buying in those maturities over 10 years.

Gold prices inched down on Tuesday amid expectations for more U.S. interest rate hikes this year.

The Swiss National Bank expects an annual profit of 54 billion Swiss francs ($55.25 billion) for 2017, the central bank said on Tuesday, the biggest profit in its 110-year history.

President Emmanuel Macron on Tuesday offered to open up France to Chinese investment in exchange for greater access to Chinese markets for French companies, warning that existing trade imbalances would lead to protectionism.