Swiss Franc Trading Higher This Morning
For the 24 hours to 23:00 GMT, the USD rose 1.33% against the CHF and closed at 0.9766. On the data front, Switzerland’s ZEW survey expectations unexpectedly dropped to 7.7 in February, defying market expectations for a rise to 13.6...
Canadian Q4 GDP Eyed ahead of BoC Meeting
Canada will report GDP numbers for the fourth quarter on Friday (13:30 GMT) when trade tensions and industrial strikes are expected to have ground growth to a near halt. With economic conditions not likely to have improved in the first...
Rush To Safety Continues
The early optimism in European stock markets was rapidly washed out at the open yesterday. US indices sold off heavily for a second consecutive day. The S&P500 and the Dow closed Tuesday’s session 3% lower, as Nasdaq dived 2.77% on...
Australian Q4 Capex to Rise but Unlikely to Arrest Aussie’s Decline
Quarterly data on construction (Wednesday, 0030 GMT) and capital expenditure (Thursday, 0030 GMT) are awaited in Australia this week and should provide some indication as to what to expect from Q4 GDP numbers due next week. It’s likely capital spending...
The Implications of the Phase One Trade Deal for the U.S., China and the Globe
Highlights The Phase One trade deal marks a détente in the U.S.-China trade war, rolling back tariff rates, reducing the risk of further tariff escalation and alleviating a major source of policy uncertainty. A key part of the deal is...
USD/JPY And Stocks The Latest Casualties Of The Coronavirus
Earlier today, one of the issues we pondered regarding the coronavirus was that USD/JPY was only down 40 pips from the day’s highs, while stocks were getting hammered and gold was flying. Where was the “flight to safety”? USD/JPY and...
Will COVID-19 Force the Fed’s Hand?
The Federal Open Market Committee (FOMC), which cut rates 75 bps in 2019, has kept its target range for the fed funds rate unchanged at 1.50% to 1.75% since October (Figure 1). Moreover, the so-called “dot plot” suggests that most...
Gold At 7-Year High On Virus Fears
Gold spiked higher this morning with safe haven demand intensifying as the global spread of CoVid-19 continues. Equities came under pressure and risk-beta currencies were pressed lower. European lockdown? The number of CoVid-19 cases in Italy spiked at the weekend,...
Weekly Economic and Financial Commentary: Coronavirus Won’t Move the Fed
U.S. Review Coronavirus Won’t Move the Fed Minutes from the January 28-29 FOMC meeting indicate the coronavirus will not push the Fed to cut interest rates, and for the most part housing and manufacturing survey data this week supported that...
The Weekly Bottom Line: All Eyes On COVID-19
U.S. Highlights COVID-19 continues to pose challenges for China’s economy as well as global manufacturing supply chains. Factories have been slow to open as quarantines keep workers at home. While the situation on the ground appears to be improving, global...
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