Risk-Off as Markets Await Powell; Oil, Gold, Bitcoin
Financial markets remain on edge ahead of Fed Chair Powell’s crucial two days of House Congressional testimony that will begin on Wednesday. Friday’s robust employment report, along with today’s better-than-expected NFIB Small Business Optimism survey continue to highlight the labor...
BoC Meeting: Staying Neutral in a Dovish World
The Bank of Canada (BoC) is expected to stand pat when it wraps up its policy meeting at 14:00 GMT on Wednesday. Given the streak of strong data, policymakers could maintain a relatively sanguine tone, highlighting that rates are unlikely...
Bears to Send Euro Sub $1.12?
Bearish factors continue to stack up against the euro. Weak German industrial production comes following last week’s softer German factory orders. Data is clearly showing the damaging impact that Brexit, the ongoing US – Sino trade dispute and fears over...
Dollar Marks Time After Friday’s Surge
Dollar eases off slightly The stronger-than-expected increase in US nonfarm payrolls for June reported last Friday saw US yields tick higher and the US dollar following suit on Friday. The greenback saw mild consolidation in Asia this morning, with the...
Weekly Economic and Financial Commentary: Economic Expansions Don’t Die of Old Age
U.S. Review Economic Expansions Don’t Die of Old Age On Monday, the current economic expansion entered its 121st month, marking the longest expansion in modern American history. Despite caution that has accompanied the longevity of this expansion, recent data indicate...
The Weekly Bottom Line: Canada’s Q2 Defying Global Headwinds
U.S. Highlights News of a trade truce between the U.S. and China buoyed equity markets at the start of the week. The ceasefire put additional tariffs on hold, and there were some modest concessions on both sides. On the economic...
King Dollar’s Reign Could End on Powell’s Testimony and Trade War Progress
How big will the punch bowl be this time around? Financial markets are convinced the Fed is set to commence on an easing cycle this summer, but if we see Fed Fund futures price in only two rate cuts this...
Week Ahead: NFP Beats Ahead of US CPI and BOC
Next week, traders will be making a more sober assessment of the latest US jobs report, after the mixed-to-good readings triggered a rally for the dollar while gold and equities sold off. There will be plenty of macro data, including...
Forward Guidance: BoC to Weigh Up Domestic Resilience, External Risks
We look for the Bank of Canada to strike a relatively neutral tone at next week’s meeting, deviating from policymakers at the US Fed and ECB that have turned increasingly dovish. Governing Council is likely to highlight signs of domestic...
Australian Dollar: Iron Ore and Rates Remain Key Now and for the Outlook
We look for AUD/USD to fall to USD0.68 in late-2019, then USD0.66 in early-2020. The Australian dollar has again held to a tight range this month. High and rising commodity prices provided support, but it was hard for the bulls...
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