Market News

This week sees global stock indices continuing their recent volatile sessions with Shanghai dropping over 2% while European bourses have found positive territory so far on the day.  Monetary policy out of Japan out on Wednesday should hold no surprises while Thursday’s BoE meeting should also be uneventful as rates are expected to remain unchanged

Despite yesterday’s equity rallies in North America, overseas markets have turned decidedly negative once again which is bolstering the U.S. dollar across the board as risk sentiment wanes.  The FTSE, DAX & CAC are all in negative territory to the tune of 1-2% and the DOW & TSX are slated to open lower as well. 

The ECB has kept their main refinancing rate unchanged at 0% and has targeted to do so through the summer of 2019.  As this was in line with expectations the market has had little reaction as we await Draghi’s news conference at 8:30 AM EST.  The dollar index remains buoyant after its recent surge higher

The dollar index soared above resistance at 96.16 hitting 2 month highs as EU PMI sunk to 52.7 from 54.1. “The headline PMI has fallen to a level which would historically be consistent with a bias toward loosening monetary policy in order to prevent any further deterioration of economic growth.” (CIBC)  Also weighing on the

With no economic data of consequence on tap today we will likely be confined to a narrow trading range.  The BoC accompanying statement tomorrow will be upbeat, and any hawkishness will be to justify the hike more than signal future ones.  Going forward we are likely to see a data dependent Bank with one more

Friday’s disappointing Canadian data sent the Canadian dollar lower to levels not seen in a over a month.  While a Bank of Canada rate hike of 0.25% is already baked into the market’s expectations on Wednesday, further monetary policy tightening is being pushed back with many giving pause to thoughts of another hike in 2018. 

All eyes are on Canadian CPI & retail sales data due out at 8:30 AM.  USD/CAD has followed general USD strength over the past few days and we open this morning half a cent lower from the highs seen yesterday.  In reality it will take a material data miss to make the data-dependent BoC change

The Canadian dollar continued to weaken in concert with most G7 currencies as near term rate dynamics driven by a hawkish Fed remain supportive for the USD.  ‎While the correlation between the CAD and oil remains far from the extremes seen in early 2016, the recent modest uptick in WTI is also being touted as

It was a mixed session in risk assets overnight with the gains in North America yesterday spilling over to Asia, but European stock futures are pulling back with NA indices pointing to a weaker open. USD is retracing recent losses with the aid of weaker UK CPI and EU’S Barnier suggesting the Brexit deadline/transition could

The Dollar Index slipped this morning after US retail sales data missed expectations and 10-year Treasury yields fell lower after hitting multi year highs last week. Retail Sales came in at 0.1%, missing expectations by 0.5%, while the 10-Year treasury Yield has fallen to 3.162 – down from the high of 3.250 last week. The