Euro Steady as German Inflation Accelerates

EUR/USD has edged higher for a second straight day, but has pared today’s gains. In the North American session, EUR/USD is trading at 1.007, up 0.09%. German inflation rises to 7.9% German CPI is estimated to have climbed to 7.9% YoY in August, up from 7.5% in July and above the forecast of 7.8%. The […]

Dollar Fires Up ahead of Nonfarm Payrolls

The latest US employment report will be released at 12:30 GMT Friday and will test the notion that the economy is in solid shape. Business surveys point to some softness in jobs growth, but nothing dramatic yet. As for the dollar, it is enjoying the best of all worlds – widening interest rate differentials, a […]

Encouraging US Data Sends Equities Lower, ADP and EZ CPI in Focus

All was going well yesterday; equities were in the green, when suddenly the dark clouds gathered and it started raining in the markets. The biggest catalyzer of yesterday’s sentiment reversal was the stronger-than-expected US economic data, which revived the Federal Reserve (Fed) hawks and sent the equity indices lower. First, the JOLTS data showed that […]

High Inflation Not Peaking Yet

Market movers today The data highlight today will be the euro area HICP figures for August. Headline inflation will likely rise above the 9% mark, despite policy measures to stem the rise in prices. With underlying inflation pressures still broadening and the latest increase in energy commodity still to feed through, an inflation peak in […]

Japanese Yen Ticks Higher on Strong Data

After starting the week with sharp losses, the Japanese yen has settled down. In the European session, USD/JPY is showing limited movement, trading at 138.66. Japanese data improves Japan posted solid numbers today, as retail sales and industrial production both improved in July. Retail sales climbed 2.4% YoY in July, (vs 1.5% in June), above […]

Euro Inflation Rises, But Euro Yawns

The euro continues to have a calm week. In the North American session, EUR/USD is showing little movement as it trades a whisker above the parity line. Eurozone inflation tops 9% Inflation in the eurozone continues to move higher. In August, CPI rose to 9.1%, up from the July gain of 8.9%, which was a […]

Canada's GDP Continues to Outperform Global Peers 

The Canadian economy expanded by 3.3% quarter/quarter annualized (q/q) in Q2 2022. Meanwhile, the flash estimate for July showed a 0.1% month/month (m/m) drop in GDP. Spending by households increased by 9.7% q/q annualized. Statistics Canada noted that this was “driven by spending on garments and footwear, household spending on semi-durable goods rose 5.6% in […]

Sunset Market Commentary

Markets Yesterday, last week’s repositioning on US and European interest rate markets simply continued with European markets again underperforming. Chair Powell on Friday was very clear that the Fed will do ‘whatever it takes’ to bring inflation back to the 2.0% target, even as that may cause pain in terms of lower growth and higher […]

German, Swiss Retail Sales for July, and Potential Improvement

Retail sales are back to the forefront of analysts’ minds. Especially now in Europe, with the ECB raising rates. On the one hand, traders would like to be wary of any signs of demand destruction that could mean weaker currency going forward. On the other, tighter policy could be slowing the economy, which could also […]

Bitcoin Reclaims $20,000 after Jackson Hole Bloodbath

On Friday, Bitcoin and major altcoins plummeted but did not approach their 2022 lows, after Jerome Powell restated the Fed’s commitment to tame inflation at any cost and warned against premature loosening at the Jackson Hole symposium. Surprisingly, Bitcoin exhibited some resilience and quickly clawed back above the $20,000 level, despite the widespread stock market […]