Funds were flowing out of US assets last week as Dollar ended as the worst performing major currency. Treasury yields surged as bonds tumbled while stocks gyrated lower. But the movements were not decisive enough yet as the greenback...
As suggested in the CFTC Commitments of Traders report in the week ended October 20, USD Index futures returned to NET SHORT of 1 666 contracts. Speculative long positions decreased - 2042 contracts and short positions added +61 contracts....
According to the CFTC Commitments of Traders report for the week ended October 20, NET LENGTH for crude oil futures jumped +17 551 contracts to 490 348 for the week. Speculative long position rose +14 764 contracts, while shorts...
BOC will likely leave the policy rate unchanged at 0.25% next week’s meeting. After surprising unwinding of some operations last week, the rest of easing measures put in place since March should remain unchanged. Inter-meeting data flow shows that...
Executive Summary
China continues to lead the world in the containment of COVID as new confirmed cases are minimal. This apparent success can likely be attributed to early lockdown protocols, significant testing and other healthcare procedures designed to mitigate...
U.S. Review
All Things Housing Appear to Be On a Roll
A recent strong report from the National Association of Homebuilders set the tone for another round of strong housing data. The NAHB index rose two points to a record...
Expect next week’s GDP data to confirm that the uneven Canadian recovery continued in August. Our forecast suggests the economy grew by 0.7% (roughly in line with Statistics Canada’s 1% preliminary estimate), a slowdown from July’s 3.0% increase and...
The word “Hopeful” has been thrown around a lot over the last week. Brexit negotiators are hopeful a trade deal will get done. US officials working on the fiscal stimulus package are hopeful a deal can be reached before...
With less than two weeks to go until the US election, markets are on red alert as opinion polls in key battleground states have tightened. In the meantime, there are three central bank meetings and a ton of data...
The prospect of a huge RBA policy move coming just hours before polls close in the US on November 3 adds to the risks that this “Double Header” event may yet push the A$ below 0.70, at least in...
Europe continues to move in the wrong direction at a rapid pace in relation to COVID-19 and now has more than 100,000 cases per day. Unfortunately, the US and Russia are also moving in the wrong direction again. India,...
Next week the ECB meets, and economists feel they will likely keep stimulus “unchanged” while they wait for staff projections at the December meeting. Meanwhile, the RBA recently suggested that they are ready to buy longer term bonds and...
Cable edged higher on Friday on fresh optimism over Brexit, pausing after Thursday’s 0.5% drop, but near-term risk remains for deeper correction before bulls regain control.
Wednesday’s massive advance stalled at key Fibo barrier at 1.3173 and profit-taking pushed the...
US PMI Manufacturing rose 0.1 to 53.3 in October, matched expectation. PMI services also rose to 56.0, up from 54.6, beat expectation of 54.5. PMI Composite rose to 55.5, up from 54.3, hit a 20-month high.
Chris Williamson, Chief Business...
Dollar is back under pressure today as global stock markets strengthen mildly before weekend. Though, overall markets are relatively mixed as we're seeing some strengthen in both Swiss Franc, Euro and Aussie. On the other hand, Sterling, and Canadian...
After the first debate, which we characterized as “chaotic, disorienting, and frankly depressing” in our recap article, expectations were exceptionally low heading into last night’s second and final debate. Thankfully, the debate was able to exceed those low expectations,...
USD/CAD has posted small gains on Friday. In the European session, the pair is trading at 1.3123, down 0.10% on the day. There are no Canadian releases on the schedule.
Investors eye US PMIs
It’s a quiet day on the fundamental...
NZD/USD continues to rally and has gained ground in Friday trading. In the European session, the pair is trading at 0.6699, up 0.35% on the day.
New Zealand dollar rallies above 67 level
The New Zealand dollar is poised to record...
GBPUSD is pairing some losses that were posted in the preceding nine consecutive red candles in the 4-hour chart. Over the last month, the price has been developing within an ascending channel and the latest bullish action is being...
The Euro jumped on Friday after double rejection above daily cloud and Thursday’s close in red, lifted by impressive German Oct Manufacturing PMI (58.0 vs 55.1 f/c, the highest since May 2018) and solid European figures (Oct 54.4 vs...