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Tag Archives: Canada

Euro Bounces Back, but the Turkish Lira Remains Unloved

Overview:  The US dollar's sharp upside momentum stalled yesterday near JPY115 and after the euro met (and surpassed) a key retracement level slightly below $1.1300.  Led by the Antipodean currencies today, the greenback is mostly trading with a heavier bias.  Among the majors, helped by a steadying of US yields, the yen is soft.  In the emerging market space, the Turkish lira continues its headlong plunge while the yuan softened and the Mexican peso is off.  Hungary's central bank surprised...

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European Gas Jumps, while the Euro and Yen Slump

Overview: The prospects that the 6.2% CPI will prompt the Fed to move quicker continue to underpin the dollar.  The euro fell to about $1.1265, its lowest level since last September, and the Japanese yen slumped to a fresh four-year low.  The JP Morgan Emerging Market Currency Index tumbled 1% yesterday, the largest decline since February.  A more stable tone is evident in Europe, as the euro has recovered above $1.13, and the JP Morgan Index is paring yesterday's losses.  The dollar is...

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US Retail Sales and Industrial Output to Accelerate; China not so Much

At the halfway point of Q4, the markets' focus is on three things:  inflation, growth, and central banks' response. With US and Chinese October inflation readings behind us, the focus shifts to the real economy's performance, the world's two largest economies reporting retail sales and industrial production figures.   Helped by stronger auto sales, the first increase in six months, US retail sales likely turned in another solid showing of around 0.8%, the average pace in August and...

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Today’s Big Events Still Lie Ahead

Overview: The day’s big events lie ahead:  the UK’s budget, the Bank of Canada, and the central bank of Brazil meetings.  The US data on tap, especially trade and inventories, will allow economists to fine-tune their forecasts for tomorrow’s first estimate of Q3 GDP. The mixed tech earnings helped spur a bout of profit-taking in Asia Pacific equities, where most of the large markets fell. Europe’s Stoxx 600 is posting a slight loss for the first time in four sessions, while US futures are...

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Today’s Big Events Still Lie Ahead

Overview: The day’s big events lie ahead:  the UK’s budget, the Bank of Canada, and the central bank of Brazil meetings.  The US data on tap, especially trade and inventories, will allow economists to fine-tune their forecasts for tomorrow’s first estimate of Q3 GDP. The mixed tech earnings helped spur a bout of profit-taking in Asia Pacific equities, where most of the large markets fell. Europe’s Stoxx 600 is posting a slight loss for the first time in four sessions, while US futures are...

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Consolidative Session as Markets Await Fresh Incentives

Overview: The markets lack a clear direction today and await fresh incentives.  After gaining almost 1% yesterday, the MSCI Asia Pacific Index slipped.  Japan, Hong Kong, and Australia are among the few equity markets that rose.  The Dow Jones Stoxx 600 is posting minor gains, while US futures are largely steady.   The S&P 500 and NASDAQ have a five-day advancing streak in tow.  The US 10-year yield reached a five-month high near 1.64% yesterday and extended to 1.67% before...

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Consolidative Session as Markets Await Fresh Incentives

Overview: The markets lack a clear direction today and await fresh incentives.  After gaining almost 1% yesterday, the MSCI Asia Pacific Index slipped.  Japan, Hong Kong, and Australia are among the few equity markets that rose.  The Dow Jones Stoxx 600 is posting minor gains, while US futures are largely steady.   The S&P 500 and NASDAQ have a five-day advancing streak in tow.  The US 10-year yield reached a five-month high near 1.64% yesterday and extended to 1.67% before...

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The Jump in Rates Does Little for Sterling, the Canadian Dollar, and the New Zealand Dollar

Overview:  Weak growth impulses from China and a continued rise in energy prices greets the new week.  Equities are struggling.  Hong Kong, Japan, South Korea, and Taiwan fell in Asia Pacific activity.  Europe's Dow Jones Stoxx 600 is about 0.5% lower near midday, while US futures indices are also nursing small losses.  Crude is trading at new highs that puts November WTI above $83 and Brent above $85 a barrel.  Benchmark 10-year yields are mostly 4-6 bp higher.  A larger than expected jump...

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The Dramatic Rise in Energy Prices is Ultimately Deflationary

The Swiss had imposed negative rates on foreign currency deposits in the 1970s to counter the upward pressure on the franc, but Denmark became the first central bank to put its policy rate below zero in 2012.  There are now around $11.8 trillion of negative-yielding bonds, the least, incidentally, since mid-2020.  At the end of 2019, the value of bonds with a negative yield was slightly below $11.3 trillion. Nevertheless, the meaning and implications of negative-yielding interest rates...

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CAD Extends Gains, While Yen Slumps Further

Overview:  The S&P 500 and NASDAQ gapped higher yesterday and closed strong, helped by robust earnings reports.  This, coupled with TSCM earnings and Beijing easing mortgage lending, helped lift the MSCI Asia Pacific Index for the third consecutive session.  The returning Hong Kong market, Tokyo, and Taipei advanced more than 1% to lead the region.  The Dow Jones Stoxx 600 gapped higher for the second consecutive session, and if it can sustain its gains, it will be the best week in six...

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