RBNZ Keen to Stay Ahead of Global Slowdown
Preview of June OCR Review and change of OCR call We expect the RBNZ to leave the OCR on hold next week. The RBNZ will probably reiterate that it has an easing bias. The RBNZ will express concern about deepening...
China Weekly Letter: Rising Chance of Ceasefire at G20 Meeting
Xi-Trump phone conversation raises the probability of a trade war ceasefire at the G20 meeting. We now see slightly more than 50% chance of this happening. US tech companies warn their competitiveness will be hurt by higher tariffs. Huawei puts...
Currencies: Euro Prone For A PMI-Driven Hit
Rates: Room for some short term profit taking? The US 10-yr yield is intensively testing 2.01% support. Failure to break below this level today could pave the way for some short term profit taking on US Treasuries. The German 10-yr...
Oil Supported on Middle East Tensions and Rising Demand Forecasts
Crude prices are trading sharply as international tensions soar in the Middle East and on fresh stimulus signals from the Fed. Iran is showing they are still able to rattle oil markets with the downing of a US drone. Iran...
Powell Has The Markets’ Back
It would appear investors had nothing to be nervous about ahead of the Fed meeting on Wednesday, as the central bank stepped up and delivered the dovish message they so craved. Decent gains across US markets on Wednesday are filtering...
FOMC Signals Rate Cuts Ahead
The FOMC acknowledges that uncertainties about the outlook have increased. We concur with the seven committee members that think rates will be 50 bps lower at the end of the year. FOMC Keeps Rates Unchanged But Sends a Dovish Message...
On-Target Inflation Means Less Pressure on BoC
Headline inflation was stronger than expected, rising to 2.4% in May BoC core measures averaged 2.1% (had been 1.9-2.0% for past 15 months) Most major components—particularly food and transportation—showed a pickup in y/y inflation Today’s stronger-than-expected inflation data will still...
Risk Appetite Rallies On Hopes Surrounding Trump Xi-Meeting | NZD, CNH
Reports that Trump and Xi are to meet at next week’s G20 meeting provided a welcome boost for sentiment, seeing USD/CNH fall to a 3-week low amid its most bearish session in two months. As per usual, Trump took to...
Canadian Inflation & Retail Sales Figures May Lift the Loonie
After losing some ground last week in the face of a stronger US dollar and softer oil prices, the Canadian dollar will now turn its sights to the nation’s inflation and retail sales figures, due out on Wednesday and Friday...
RBA Minutes Confirm More Easing on the Way
The minutes of the June RBA Board meeting show the decision to cut the cash rate by 25bp at that meeting was driven by a revised assessment of spare capacity in the labour market and that the Board expects to...
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