Dollar Caught a Break Thanks to Yield Support and Risk-off Setting

Markets “All” it took for US investors to digest Friday’s strong payrolls was a weekend of time, another eye-opening WSJ article and a strong US non-manufacturing ISM. Recall that the initial post-payrolls move (higher yields, stronger dollar, weaker stocks) was surprisingly undone by last week’s US closing bell. The trading week yesterday still started with […]

Sentiment Hit by Rekindled Fed Hike Bets

Asian shares were under attack on Tuesday, following the negative cues from Wall Street overnight as unexpectedly strong US data revived expectations of the Fed raising rates more than expected. European futures are pointing to a mixed open this morning amid the shaky sentiment and lack of risk appetite. This overall market caution could trickle […]

BOC Interest Rate Decision: Foreshadowing the Fed?

Analysts are coalescing around the idea that the BOC will hike by a quarter percentage point (or “one hike” as it used to be) at the next meeting. But given the connection between Canada and the US in economic terms, some traders might be looking at this for some insight into the Fed. After all, […]

USD/CAD Eyes Bank of Canada Meet

The Canadian dollar is slightly lower on Tuesday. In the European session, USD/CAD is trading at 1.3620, up 0.24%. What does the Bank of Canada have planned? The Bank of Canada has been aggressive in its tightening, including a whopping full-point hike in July, which brought the cash rate to 2.50%. The BoC has been […]

Wind Out of the Sails

Stock markets are making small losses on Tuesday, while US futures are relatively unchanged ahead of the open. The recovery rally has lost momentum in recent sessions which is understandable after that jobs report. That’s not to say optimism can’t and won’t return but that wages component was a huge body blow. Investors are a […]

Australia Not Keeping Pace With US Rate Hike

The Reserve Bank of Australia raised its key rate by 0.25 percentage points to 3.1% on Tuesday morning, meeting expectations. The current rate level is the highest in 10 years and the eighth consecutive hike, but the RBA has signalled more to come. The RBA considers current inflation at 6.9% YoY “too high”, noting the […]

Sunset Market Commentary

Markets Your average daily soap opera tonight will most likely hold more plot twists than markets do today. European equity markets whipsawed in a tight range just below the zero point and WS opens flat in a session devoid of news and economic data. Core bonds gained with US Treasuries underperforming Bunds. US yields initially […]

First Impressions: Australian Q3 GDP

Australian economy expands by 0.6%, a little softer than expected. The impacts of high inflation and higher interest rates are becoming apparent – notably, the real estate sector on lower turnover subtracted 0.2ppts from activity in the period. The Australian economy expanded by 0.6% in the September quarter. That was a little softer than anticipated, […]

Sour Risk Sentiment and China Eases COVID-19 Restrictions

Market movers today Today we get German industrial production data for October. Consensus is looking for a 0.6% m/m drop compared to a similar increase in September. Final Q3 GDP data from the euro area is also out and expected to confirm that the euro area economy kept its head above water in Q3. Sweden […]

Equities, Oil Fall, Brent Below $80pb for the First Time Since January

Equities extend the downside recovery, following the failure to clear an important year-to-date resistance last week, which was the S&P500’s year-to-date descending channel top at around the 4080 level. The index cleared the first bearish target, at 3956 level, the minor 23.6% retracement on the latest rebound and tested its 100-DMA to the downside, but […]