Tag Archives: Bank of Canada

There are five macro highlights in the week ahead. After providing a thumbnail sketch of them, we will look more closely at the price action of the leading dollar-pairs. We suspect that the dollar is in the process of carving out a top amid ideas that a 5.0% terminal Fed funds rate is discounted. Sterling’s panic low recorded late September near $1.0350 may indeed by the cyclical low. It took place amid cries that it was an emerging market and linear projections...

Overview: The continued surge in US rates and inability of the equity market to sustain gains saw the post-Truss sterling rally unwind amid a broader recovery of the dollar. Sterling has been sold to new lows for the week. Meanwhile, the dollar has held above JPY150, and the BOJ hand has not been seen. It rose to almost JPY151 in Europe. Equity markets are on the defensive. Nearly all the bourses in Asia fell, and the 1.65% drop of the Stoxx 600 is the biggest loss...

Overview: Asia Pacific equities were mixed as the China, Hong Kong, Taiwan, and South Korean markets, among the large markets were unable to gain in the wake of a solid performance in the US. Europe is also struggling to maintain the upside momentum that has lifted the Stoxx 600 for the past four sessions. It is nearly flat as this note is penned. US futures are firm. Benchmark bond yields are higher, and the 10-year US Treasury yield is edging above 4.05%. European...

Overview:  Global equities moved higher in the wake of the strong gains in the US yesterday. US futures point to the possibility of a gap higher opening today. Most of the large Asia Pacific bourses rallied 1%-2%, with China’s CSI a notable exception, slipping fractionally. Europe’s Stoxx 600 is edging higher and is near two-week highs. If the gains are sustained, it will be the fourth consecutive advancing session, the longest in two months. Benchmark yields are...

Overview: The markets have returned from the weekend with a greater appetite for risk. Equities and bonds are rallying, and the dollar is better offered. China, Hong Kong, South Korea, and Indian bourses advanced. Mainland shares edged higher even though Zhengzhou, a city of one million people, near an iPhone manufacturing hub was locked down due to Covid. Europe’s Stoxx 600 is up nearly 0.5% to extend its recovery into a third session. US futures are trading a...

One of the reasons people choose to invest in gold bullion or to buy silver coins is because they are simple and they are finite; basically the opposite of fiat currency. The complexity of fiat-driven markets and infinite possibilities to create money works to the advantage of central banks. . And they particularly like to take advantage when asked by the general public a very obvious question… Central banks are on the defensive over printing too much money during...

Overview: While the US dollar appears to be consolidating its recent gains, the Japanese yen and Chinese yuan remain under pressure. Officials seem more concerned about the pace of the move than the level it has reached. New and large fiscal initiatives that the new UK government has floated has failed to change sentiment toward sterling, which is the second weakest major currency today after the Japanese yen. The yen’s weakness did not prevent new losses in Japanese...

Overview: The higher-than-expected US CPI and the strong expectation of a 100 bp hike by the Fed in two weeks is propelling the dollar higher. It jumped to almost JPY139.40 and the euro is off more than cent from yesterday's high (though holding above parity). Even where there has been favorable economic news, like the strong jobs report in Australia, is failed to dent the greenback. Most of the large bourses in the Asia Pacific regions advanced. Hong Kong is a...

Overview: The US dollar is consolidating with a slight downside bias ahead of the June CPI report. The euro held above $1.00 but is still pinned in the trough. The rate hike by the Reserve Bank of New Zealand failed to have much impact. On the other hand, the JP Morgan Emerging Market Currency Index is lower for the fourth consecutive session. Most of the large markets in the Asia Pacific region rose, led by a 2.7% rally in Taiwan after the government promised to...

Overview: Asia Pacific equities were mostly lower.  China and India bucked the trend.  Europe’s Stoxx 600 is steady with no follow through selling after yesterday reversal. US index futures are posting modest gains and are trying to snap a two-day drop.  The US 10-year yield is firm at 2.91%, while European benchmark rates are 2-3 bp higher.  Asia Pacific bonds were dragged lower by the sell-off in the US yesterday.  The dollar is broadly lower.  The Swedish krona...