British Pound Dips Below 1.30 as Construction PMI
GBP/USD has posted considerable losses on Tuesday. In the North American session, the pair is trading at 1.2992, down 0.37% on the day. On the release front, British Construction PMI dipped to 52.1, short of the estimate of 52.8 points....
Japanese Yen Edges Higher, ADP Payrolls Next
USD/JPY has edged lower in the Tuesday session, erasing the losses seen on Monday. In North American trade, the pair is trading at 113.65, down 0.27% on the day. On the release front, Japanese consumer confidence remains weak, coming in...
Rescued NAFTA Deal Fails To Lift Global Risk Appetite
Global investors remained defensive on Tuesday despite the U.S. and Canada agreeing to a new trade deal ending months of uncertainty and providing a lift to specific assets including the Canadian Dollar and Mexican Peso. Apparently, it was the Canadians...
Currencies: Italy-EMU Budget Dispute Weighs On Euro
Rates: Risk aversion to dominate trading? Italian FM Tria returned from yesterday’s Eurogroup with work to do on the country’s draft budget proposal which is unacceptable to Europe. Italian populist party leaders probably won’t give in, adding selling pressure on...
Breakthrough Trade Deal a Major Sigh of Relief
Last night’s agreement in principle to update NAFTA under the new banner of the US-Mexico-Canada Agreement (USMCA) may yet contain some surprises buried in its fine details. But, similar to the immediate investor response, we are breathing a sigh of...
US: Manufacturing Confidence Resilient in September
The Institute for Supply Management (ISM) manufacturing index dipped 1.5 percentage points to 59.8 in September, still in line with the healthy levels seen over the past year. Markets were expecting a weaker reading, and this was only a hair...
Currencies: US-Canada Trade Deal To Support Further USD Gains Against Other Majors?
Rates: More outperformance of German Bunds vs US Treasuries?The US, Mexico and Canada reached a last-minute agreement to revamp NAFTA. US equity futures gain ground, while the US Note future is a tad weaker. Today’s eco calendar contains US eco...
Loonie Jumps As US Inches To A New Trade Deal With Canada
The effects of the current trade conflict between the US and China have started to emerge. Yesterday, the manufacturing Purchasing Managers Index from China’s Logistics Information Center and Caixin showed a reduction in activity. The former showed that the PMI...
Weekly Economic and Financial Commentary: Central Banks in Focus as Growth Remains Steady
U.S. Review Fed Rate Hike Took Center Stage This Week The Federal Open Market Committee (FOMC) raised the fed funds rate 25 bps this week in a widely-expected move. The removal of language characterizing monetary policy as “accommodative” in its...
The Weekly Bottom Line: Don’t Let Textual Changes Get in the Way of Rate Hikes
U.S. Highlights The Fed hiked rates by 25 bps this week as widely expected. But, the communiqué dropped the reference to policy remaining “accommodative”. Interpretations regarding this change led to volatility in bond yields and equities. The debate on textual...
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