Inflation Risks and the Rate Conundrum, Dollar Hangs in There
Risk evaporates and US Industrial production disappoints Market sentiment has softened and the dollar remains subdued. Expectations that the Fed is preparing to taper is keeping the reserve currency afloat as well as the push up in the 10-year yield...
Weekly Economic & Financial Commentary: Growing Pains Still Plaguing U.S. Economy
Summary United States: Growing Pains Still Plaguing U.S. Economy Consumer prices, retail sales and U.S. workers quitting their jobs all topped expectations in September. This week’s economic data provided additional evidence that the economy is struggling to find an equilibrium...
The Weekly Bottom Line: Inflation Pressures Remain Elevated
U.S. Highlights The consumer price index rose 0.4% in September, sending year-on-year inflation to 5.4%. Core prices (excluding food and energy) rose 0.2% on the month and held steady at 4.0% y/y. A 0.4% increase in the heavily-weighted shelter component...
Week Ahead: Will Risk-on Continue if there is Stronger Data this Week?
Last week was quiet as far as news was concerned, and the markets were left to themselves to act without an obvious catalyst. While the chatter was on higher US inflation and stronger bank earnings, markets seemed to brush them...
Week Ahead: Rising Prices Raise Stakes for Rapid Rate Increases
All about Inflation Wall Street still remains upbeat despite growing an energy crisis that threatens the economic recovery, widespread price increases, and mixed economic data. It seems that inflation will remain elevated for a lot longer than the Fed imagined,...
Forward Guidance: Inflation in Focus in BoC Surveys and Canadian CPI Data
Canada’s headline inflation rate likely rose again in September, to 4.2% year over year—the highest level since 2003. Outside of volatile food and energy products, it probably rose 3.3%. Faster growth in shelter-related expenses likely remained a key driver of...
Stocks Extend Gains, Retail Sales Unexpectedly Rise
Wall Street looks set to open higher, building on strong gains from Thursday. Inflation fears appear to have eased. Retail unexpectedly rise. US futures Dow futures +0.36% at 34042 S&P futures +0.3% at 4451 Nasdaq futures +0.3% at 15098 In...
Cliff Notes: Confidence Provides a Robust Foundation for Recovery
Key insights from the week that was. Confidence was the key theme in Australia and the world this week. Beginning with Australia’s NAB business survey. In mid-to-late September when the survey was taken, the end of lockdown was in sight...
Sterling Hits 3-Week High
The British pound has extended its gains on Thursday, as the US dollar continues to retreat against the major currencies. GBP/USD is currently trading at 1.3710, up 0.41% on the day. Earlier, the pair rose to 1.3434, its highest level since...
The Setback In Yields To Be Corrective/Temporary In Nature
Markets Moves on the interest rate markets yesterday suggested that investors still have to navigate a complex of unsure, potentially conflicting, factors. The US curve continued Tuesday’s flattening trend. The US inflation data supported the move, but were not the...