Weekly Economic and Financial Commentary
U.S. Review Virus Shutdowns Begin to Show Up in the Data The U.S. surpassed Italy and China with the most confirmed cases of COVID-19. Europe is still the center of the storm, with the total cases in Europe’s five largest...
The Weekly Bottom Line: Fiscal Stimulus on the Way as US COVID-19 Cases Surpass China
U.S. Highlights Another eventful week for financial markets as they digested the news that Congress had agreed to a giant $2 trillion relief bill. Stimulus is sorely needed, with more than three million Americans filing for unemployment insurance benefits last...
Forward Guidance: Near-Term Layoffs to Accelerate – But Will Virus Cases?
The week past has seen eye-popping layoff numbers in both Canada and the US with reports that almost a million jobless claims were filed last week alone in Canada, and 3.3 million in the US. These were unprecedented increases, and...
Week Ahead – China and US PMIs Eyed for Virus Impact; NFP Report Poses Threat to Relief Rally
The global crisis from the coronavirus pandemic has produced much turmoil in financial markets even though economic data on the impact has so far been scarce. That is about to change as March figures start rolling in. Given the extent...
Initial Claims Atrocious, Stimulus Vote Still to Come
Initial Jobless Claims were released earlier today, and the number was not pretty. Yesterday, we discussed how this number was expected to be larger than any we had ever seen before. According to Bloomberg, the average estimate by economists was...
USD Weakens As Labour Data Are To Be Released
The USD weakened yesterday, against a number of other currencies, as the market is in expectation of the initial jobless claims figure for the past week. Estimations run high and forecasts vary significantly as the coronavirus outbreak worsens in the...
Senate Leadership Agrees to a $2 Trillion “Phase 3” COVID-19-Aid Bill
Democratic and Republican leadership in the Senate have agreed to a substantial Phase 3 aid package, reported to cost $2 trillion. The bill is intended to help cushion the considerable economic toll the coronavirus pandemic is having on the country....
Comdolls Reach Higher Amid Stimulus Hopes
The Australian dollar, New Zealand dollar and Canadian dollar powered higher in early trading on Wednesday. The ‘comdolls’ were lifted as fresh stimulus hopes boosted risk appetite and global equity markets rebounded. After US lawmakers reached a $2 trillion aid...
Asia Open – Asia Follows US Historic Rally, Virus Spread Intensifies, Oil’s Temporary Rebound, Gold Bulls Are Back
Asia is surging following a blockbuster session on Wall Street that was strictly based on stimulus hopes. Traders are fully expecting that Congress will finalize a stimulus package very soon. Traders will need to choose their mantra: Don’t fight the...
Why the Fed’s Currency Swaps May Not Calm the Dollar Funding Stress
The coronavirus crisis prompted investors to rush for US dollars, with the greenback skyrocketing against a basket of major currencies by nearly 9% over the past ten days in the aftermath. To ease the panic and avoid currency shortages in...
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