The Odd One Out, BoJ Sticks to Super Easy Monetary Policy

Markets The ECB hiked its policy rates by another 75 bps yesterday, bringing the total effort to 200 bps since the inaugural rate hike in July. The ECB deposit rate now stands at 1.5%. Rumours this morning suggest that three governors dissented in favour of a 50 bps move. The wording of the new policy […]

Yen Dips after BoJ Holds the Course

USD/JPY is in positive territory today. In the European session, the yen is trading at 146.94, up 0.47%. BoJ maintains policy All eyes were on the Bank of Japan, which wrapped up a crucial 2-day policy meeting on Friday. The meeting came just days after Japan’s Ministry of Finance (MOF) intervened in the currency markets […]

Canadian Dollar Slips ahead of GDP

The Canadian dollar is lower today. In the European session, USD/CAD is trading at 1.3617, up 0.39%. Markets eye Canada’s GDP The week wraps up with Canada’s GDP for August. The economy is expected to have expanded by 0.1%, which would be unchanged from July. The economy is likely heading into a recession, and Finance […]

Canada's Economy Edges Up in August, Points to Further Gains in September

The Canadian economy expanded by 0.1% month/month (m/m) in August, beating Statistics Canada’s flash estimate of no growth. The flash estimate for September showed a 0.1% gain. August’s increase in activity was relatively broad, with output expanding in 14 of the 20 industries. The service-producing sector rose by 0.3%, while the goods-producing sector declined 0.3%. […]

US: Spending Stronger than Expected, Income Grows in Line with Estimates

Personal income added 0.4% month-on-month (m/m) in September, in line with market expectations. Wages and salaries increased by a solid 0.6% m/m while personal income receipts on assets were up 0.4% m/m. Controlling for inflation and taxes, real personal disposable income remained flat in September. Personal consumption accelerated from August, rising by 0.6% and coming […]

Yen Steady as Inflation Hits 31-Year High

Core CPI hits 3.0% Inflation in Japan continues to rise. Core CPI rose to 3.0% YoY in September, its highest level since August 1991. This was up from 2.8% in August and marks the sixth consecutive month that the indicator has been above the Bank of Japan’s target of 2 per cent. The 3.0% figure […]

Aussie Falls on Fed's Harker's Comments

AUD/USD has dropped lower today and is trading at 0.6252, down 0.43%. Fed expected to remain aggressive The Federal Reserve has signalled that it plans to remain hawkish, as the relentless battle with spiralling inflation continues. This aggressive stance was reaffirmed by Philadelphia Federal Reserve President Patrick Harker on Thursday. Harker stated that higher interest […]

Canadian Dollar Dips ahead of Retail Sales

The Canadian dollar is in negative territory today, as the US dollar is higher against the major currencies. In the European session, USD/CAD is trading at 1.3827, up 0.45%. Canada retail sales expected to improve Canada releases retail sales for August later today. The July data was weak, with retail sales at -2.5% and core […]

British Pound Sinks on Truss Turmoil

Pound slides on Truss resignation fallout The British pound is showing strong volatility in the wake of Prime Minister’s Truss resignation. Truss resigned on Thursday after just 44 days in office, and the pound jumped as much as 1% before paring most of the gains. The reality of the political maelstrom engulfing the UK has […]

Canada: Retail Sales Increase in August 

Retail sales rose 0.7% month-on-month (m/m) in August, partially reversing July’s large decline. Adjusting for the impact of inflation, the volume of sales was up 1.1% on the month. Statistics Canada’s flash estimate for September points to a 0.5% m/m decline. Receipts at gasoline stations were marginally lower in August, reflecting lower prices at the […]