Australia & New Zealand Weekly: Credit Spreads and Monetary Policy Cycles
Week beginning 15 October 2018 Credit spreads and monetary policy cycles. RBA: minutes, RBA Deputy Governor Debelle speaks. Australia: Westpac-MI Leading Index, employment, NZ: CPI. China: GDP, new loans. Europe: EU Summit. US: FOMC meeting minutes, retail sales. Other central...
Stocks, FX and Commodities Face Testing Week
As we had warned in our weekly outlook last Friday, this week’s lack of significantly important data was by no means an indication for volatility. We were concerned about an equity market sell-off after the major US indices had stalled...
The Dollar Index Has Updated Local Lows
During yesterday’s trading session, the US dollar continued to lose ground relative to currency majors. The dollar index (#DX) closed the trading session in the negative zone (-0.49%). The American currency was under pressure due to aggressive sales in the...
Crude Oil Price Falls Sharply After Buildup In Investories
The US dollar declined against major peers in the Asian session. This was a continuation of the weakness experienced this week. Yesterday, data from the Labor Department showed that inflation numbers for September rose at a slower rate than traders...
Avoiding What Might Have Been: The Canadian Implications of USMCA
Highlights The conclusion earlier this month of NAFTA renegotiations with the creation of new U.S. Mexico Canada Agreement (USMCA) removes the cloud of uncertainty hanging over exports and investment. For the Bank of Canada, the result is likely to be...
China Market Monitor: Stocks Take a Big Hit But Not Alone This Time
After some stabilisation, Chinese stocks took a big hit overnight, falling 5% to the lowest level in more than two years. However, in contrast with the declines earlier this year, this was part of a global sell-off that included the...
Gold Prices Have Now Surged Above The Local 1196.41
The headline moves yesterday were seen in equity markets which plummeted (S&P down 3%) under pressure from an uptick in US yields and USD. Consequently, we saw a flight to safety which drove the bid in gold but weighed on...
Trump Comes Out Swinging At The Fed As Markets Tumble
Bloodbath in Markets as Trump Points Finger at the Fed European stocks are set to become the latest casualty in the global sell-off that has rattled markets over the last 24 hours, as investors worry about the potential for a...
British Pound Climbs to 2-Week High on Strong GDP
GBP/USD has recorded considerable gains on Wednesday, continuing the upward movement seen on Tuesday. In the North American session, the pair is trading at 1.3200, up 0.42% on the day. On the release front, British data disappointed. GDP grew by...
What Do the IMF’s Trade Concerns Imply for FX Markets?
The IMF presented its World Economic Outlook (WEO) on Tuesday, a survey that is released every six months, with economic activity estimates being updated in between. In its report, the organization stresses that downside risks to global growth have risen...
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