Tag: AUD

USD/CAD – Loonie Rallies on Inflation Data

Statistics Canada data this morning showed that headline inflation in Canada slowed last month, while measures of underlying prices strengthened to their highest level in 18-months. Canada’s consumer-price index rose +1.7% y/y in January, following a +1.9% advance in December. Market expectations were for a +1.5% lift. On a month-over-month basis, prices rose +0.7% in […]

Fed Rhetoric to Dictate Dollar Direction

Friday February 23: Five things the markets are talking about Ahead of the U.S open, Euro equities are struggling for direction after a positive Asian session as the market debates the outlook for central banks ‘normalizing’ their policies. Euro bonds have gained along with Treasuries, while the dollar steadies after yesterday’s drop. With no U.S […]

Yield-o-Mania

Yield-o-Mania Global yields ratcheted higher after a stronger than expected jump on Germany’s PPI which bolsters the hotter than expected comprehensive inflation narrative. But it was the jump in US 2-year note yields that provided the extra boost to the US dollar as shorter-dated tenors provides investors with better goalposts for determining how the market […]

Oil Mixed with WTI Rising Due to Canadian Pipeline Issues

Oil prices were mixed Tuesday, with the U.S. benchmark gaining ground on its global counterpart thanks to Canadian pipeline problems. West Texas Intermediate futures for April delivery CLJ8, +0.10%  rose 53 cents, or 0.9%, to $62.08 a barrel. Brent crude LCOJ8, -0.84% the global benchmark, lost 8 cents, or 0.1%, to $65.59 a barrel. The […]

FX Market Analysis – 20 February 2018 (Video)

Senior Market Analyst Craig Erlam discusses this week’s key event risks, with the most notable being the UK jobs report and BoE inflation report hearing. Craig also gives his live analysis on EURUSD (11:04), GBPUSD (15:13), EURGBP (17:04), AUDUSD (18:36), USDCAD (20:02), GBPCAD (22:01), NZDUSD (24:47), USDJPY (25:44), GBPJPY (26:47) and EURJPY (28:24). USD/JPY – […]

Higher Yields Pushing Dollar Up

Tuesday February 20: Five-things the markets are talking about Overnight, global stock indexes have declined along with U.S futures, while the ‘big’ dollar has rallied a tad as U.S Treasury yields back up towards their four-year highs. No central bank meetings are scheduled for this week although minutes from the latest FOMC (Wed) and the […]

Intermezzo

Intermezzo It was a predictable snoozefest in FX overnight as global holiday sessions crimped activity. And adding to the void, there was scant data during European hours which severely nipped action as traders had few if any fundamental guideposts. But the markets interlude included the usual holiday- liquidity induced mystery move as the dollar went […]

Dollar Regains Ground Ahead of Fed Minutes

Higher US inflation fails to spark dollar revival The US dollar depreciated across the board versus major pairs despite consumer prices rising more than expected. Inflation anxiety had triggered a sell-off in global stock markets with the Fed expected to ramp up their interest rate hike path yet the dollar did not benefit as higher […]

US Bond Auction TIPS the dollar

US Bond Auction TIPS the dollar A dismal US 30year TIPS auction is weighing on dollar demand as the sagging bid to cover ratio of 2.31 is signalling dwindling investor appetite as inflationary headwinds build. The dollar is lower because no one wants to own US bonds despite the higher yield, knowing the inflationary headwinds […]

US/German Bond Yield Gap Hits 10-month high

The gap between German and U.S. 10-year borrowing costs reached its widest point since April 2017 on Thursday after a higher-than-expected inflation print in the United States led to a sharp sell-off in U.S. Treasuries. While investors also shed European government bonds on the data – bond markets in the world’s major developed economies tend […]