Pound Rises Even as Inflation Tops 11%

The British pound has moved higher on Wednesday. In the European session, GBP/USD is trading at 1.1934, up 0.56%. The pound roared on Tuesday, gaining close to 1% and punching past the 1.20 line for the first time in three months. It has been a busy time for sterling, which has been marked by sharp […]

The Probable Peak of UK Inflation

The UK Consumer Price Index delivered another “positive” surprise, adding 2% for October, above the average forecast of 1.7%. Annual inflation accelerated to 11.1% against 10.1% previously and the forecast 10.7%. Inflationary pressures are much stronger here than in the USA and China, which reported a stronger-than-expected slowdown last month but are in line with […]

Australia October Unemployment and Stronger Aussie?

The AUDUSD has been trending higher for about a month at this point, but a substantial amount of that could be attributed to events outside of Australia. The latest data releases give reasons to expect a stronger Aussie, but the actions from the RBA in the recent past give reasons for a weaker currency. How […]

Sunset Market Commentary

Markets NATO chief Stoltenberg said that yesterday’s missile explosion on Polish territory was probably caused by Ukrainian air defenses. An unfortunate accident, nevertheless sparked by the Russian attack against Kiev etc yesterday. By immediately taking the angle out of a potential explosive situation, both parties clearly wanted to avoid an unnecessary escalation in the conflict. […]

US Consumer Remains Strong

Equity markets in Europe are back in the red on Wednesday, while the US looks largely unchanged around the open on Wall Street. Reports of missile strikes in Poland on Tuesday naturally caused a shudder in the markets. The prospect of a sudden and unexpected escalation in the war in Ukraine, particularly involving a NATO […]

Canada: Higher Prices at the Pump Keep Inflation Elevated in October

Consumer price inflation held steady in October, at 6.9% year-on-year (y/y), down from 6.9% in September. Higher gasoline prices in October were a key culprit keeping inflation elevated. Prices at the pump surged 9.2% in October, after three months of decline, and are up 17.8% versus a year ago. Food inflation did ease very slightly, […]

US: Retail Sales Off to a Good Start to the Quarter

Retail sales rose by 1.3% m/m in October, above the consensus forecast of a 1.0% gain. September data remained flat. Sales at autos & parts dealers rose by 1.3% m/m erasing September’s losses. Excluding autos, sales were up 1.3% m/m. Gasoline station receipts rebounded from a three-month decline, rising 4.1% m/m. Sales at building materials […]

Silver is One Step Ahead of Gold

Silver is testing the $22 per ounce mark today and crossed it briefly yesterday. Although Gold marks the fifth consecutive session of back-to-back gains, Silver may have been one step ahead in this market cycle. In early November, the price of Silver pushed up from the 50-day moving average, which had worked as a support […]

Australia: October Labour Force; Employment Lifts As Absences Fade

Total employment: 32.2k from -3.8k (revised from 0.9k); unemployment rate: 3.4% from 3.5% (unrevised 3.5%); participation rate: 66.5% from 66.5% (revised 66.6%). It was a strong update even though holidays, sickness and floods continue to hold back the recovery. Unemployment is now the lowest level since November 1974. Total employment gained 32.2k or 0.2% in […]

Sunak Speaks

Market movers today In the UK, we look forward to the Chancellor’s Autumn Statement today, where PM Sunak’s government will spell out its fiscal plans. It is widely expected to include tax increases across the board to fill up the hole of approximately GBP 50bn in the UK’s public finances. Euro area inflation surprised again […]