Market News

We have seen the topside of the 1.3050-1.3150 range breached in the wake of the FED statement sending front end rate spreads between the U.S. & Canada towards late October highs.   The blocking of the Keystone XL pipeline project by a federal judge in Montana and the reactivation of NAFTA/USMCA issues have added additional layers

We have consolidated within the range of yesterday’s precipitous drop in the dollar index (DXY) as the market continues to digest the possible ramifications of the U.S. election results.  So far participants are taking it as a signal to continue the risk rally and invest in global equities.  While European concerns & potential trade wars

Yesterday’s month end USD buying for equity portfolio rebalancing was extreme since the S&P had its largest monthly loss in 2 ½ years causing the DXY to reach new highs for 2018.  This has been slowly unwound overnight as overseas players are happy to exit well established USD longs at levels posted on the North

Yesterday’s BoC testimony reiterated, nearly verbatim, the Bank’s reasoning for last week’s rate hike as we traded within a tight range ahead of this morning’s Canadian GDP release.   Consensus expectations are for a flat reading month over month which would put the year over year number at +2.4%. If this data fails to excite we

The dollar index continues to inch higher towards the high seen in August fueled by trade tension rhetoric out of the U.S. aimed at China while global stock indices continue to melt away any gains seen to date in 2018.  The DXY peaked at 96.98 and a breach of this are will target the 61.8%

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