Euro Drifting Continues

The euro is showing little movement for a second straight day. In the North American session, EUR/USD is trading at 1.0187, up 0.14% on the day. With a light economic calendar today in both the US and Europe, the euro is likely to continue to have a quiet day. Investors shrugged after a soft reading […]

Bank of England Update Review: Dovish 50bp Rate Hike

BoE: high inflation but rising recession risk In line with expectations, the Bank of England (BoE) hiked the Bank Rate by 50bp to 1.75% (the largest hike in 27 years) with only member voting for a 25bp hike. BoE announced that active QT (i.e. outright government bond selling) will start after the September meeting with […]

GBP/USD Falls After 50 bps Hike

BoE hikes bank rate by 50 bps to 1.75% GBP/USD falls in reaction to weak UK growth forecasts BoE GDP Forecasts Shock “Expect the unexpected”, said Oscar Wilde, the famous Irish poet and playwright. That certainly has proven true in relation to Bank of England policy as of late. Thursday’s monetary policy decision was certainly […]

Will Canada's July Jobs Report be Important for the Loonie?

Canadian employment likely returned to growth in July, Statistics Canada will show on Friday at 12:30 GMT, but the rebound may not be anything to celebrate. If that turns out to be the case, the figures could do little to alter investors’ rate hike expectations, leaving the loonie under the US dollar’s influence. Soft employment growth expected After a […]

Not Yet time for BoE to Pause, Let Alone Flip

Markets The Bank of England policy meeting was widely watched yesterday, not only by UK but also by European and US markets. Governor Bailey’s MPC raised rates by 50 bps to 1.75%, following global peers in larger-sized increases. The BoE will start selling UK gilts actively shortly after the September meeting, tightening policy on another […]

Daily Technical Analysis

EUR/USD The pair ended yesterday’s volatile session without significant changes. Data on the declining U.S. GDP kicked off a technical recession in the country, which in turn supported the euro. Nevertheless, expectations remain negative, and the downtrend is not broken yet. Prices continue to move in a range with support at 1.0120 and resistance at […]

Bitcoin Climbing Out of the Pit But Not Yet Ready to Fly

Bitcoin closed Thursday near $24,000, retesting that area after a failed attempt to climb higher in the middle of last week. The first cryptocurrency has added 3.8% over 24 hours, about as much as it has gained in the past seven days. Ethereum has added 4.8% in 24 hours, to $1720. Altcoins from the top […]

Chinese PMIs and Potential Signs of Recovery

Overnight, reports surfaced that the Chinese government was “backing away” from its growth target for this year. The media pointed to a recent Communist Party planning meeting in which the target wasn’t mentioned. Remember that the NPC earlier set the growth target at 5.5%, one of the lowest in decades. This also comes after disappointing […]

US: Personal Income Up, But Real Spending Disappoints 

Personal income rose 0.6% month-on-month (m/m) in June, one tick above the consensus estimate and matching May’s pace. The gain was led by employee compensation of employees (+0.4% m/m) and proprietors’ income (+1.4% m/m). However, with inflation running hot – the PCE deflator rose 1.0% m/m in June – real  disposable income fell 0.3% m/m. […]

Canada's Economy Stalls in May, Points to a Slight Expansion in June

The Canadian economy recorded no growth in May, beating Statistics Canada’s flash estimate for a contraction of 0.2% month-over-month (m/m). The flash estimate for June showed a mild return to growth of 0.1% m/m. May’s results showed output expanding in 14 of the 20 industries. The goods-producing sector contracted 1.0%, while the service-producing sector rose […]