ECB Recap: Economic Risks To The Downside, EUR/USD Risks To The Upside?
As unanimously expected, including by my colleague Fawad Razaqzada, the European Central Bank made no changes to monetary policy in today’s meeting. In its statement, the institution reiterated that it would leave interest rates unchanged through at least this summer,...
US Government Shutdown Impact on Canada
While the partial U.S. government shutdown has dominated the headlines and disrupted public services across the U.S., it isn’t ultimately expected to have a significant impact on broader trends in the U.S. economy, let alone Canada’s. But the protracted nature...
Fed Rate Hikes: All in Good Time
In January’s Financial Markets Monthly we noted growing risks around our long-held call for the Fed to continue raising interest rates in March, with a brief pause in their tightening cycle looking increasingly likely. Ahead of next week’s FOMC meeting...
Australian Employment Had a Solid End to 2018
December Labour Force Survey. Employment 21.6k, unemployment 5.0%, participation 65.6%. Total employment printed a solid 21.6k gain in December which was in line with market expectations for +20k. This has locked in a solid trend pace of growth with a...
European Central Bank To Keep Policy Unchanged As Uncertainty Rises
The US dollar is weaker against major pairs on Wednesday. The prolonged government shutdown and lack of clarity on trade talks put downward pressure on the greenback while investors sought higher yields as risk appetite was back in action. The...
MARKET WRAP: Stocks Changed Direction- Closed Higher
Equity markets traded lower in the morning but changed its direction when the US markets started to trade. Thanks to Davos. Stocks The S&P 500 Index reversed its losses and jumped 0.3 percent as of 15:36 London time, The Stoxx Europe 600 Index increased...
ECB Meeting and Eurozone PMIs Eyed as Euro/Dollar Flirts with Trendline
The ECB will announce its first policy decision for the year on Thursday, at 1245 GMT. A press conference by President Draghi will follow. Markets will focus primarily on whether the language around growth will be downgraded (euro-negative) in light...
Is The Eurozone Economy Close To Recession?
Executive Summary The recent slowdown in Eurozone economic growth has sparked fears that the bloc may be approaching, or already in, a recession. Forecasting recessions is a notoriously difficult task, and even defining what marks a recession is not always...
S&P 500 Breaks Bearish Wedge, Traders Monitoring Earnings And Shutdown Shenanigans
US stock markets were closed yesterday in remembrance of Dr. Martin Luther King, and given the headwinds the world economy faces, perhaps policymakers could benefit from his overriding message of inclusion and cooperation. Many of the biggest risks facing the...
MARKET WRAP: Global Stocks React To Cloudy Outlook
Investors were not in the mood to take any risk Stocks The S&P 500 Index fell 0.9 percent as of 15:30 London time as investors react to IMF report The Stoxx Europe 600 Index dropped 0.5 percent, despite strong ZEW economic reading. The U.K.’s FTSE 100 Index failed...
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