Among a phalanx of central bank meetings this week, the ECB gather tomorrow with no policy changes forecast. Since the last meeting in September, global energy prices have surged, adding upside risks to the inflation outlook. At present, markets are …
The Bank of Canada is widely expected to taper its weekly bond purchases from C$2bn to C$1bn at its first in-person meeting on Wednesday since the pandemic crisis began. The main focus will be on policy rate guidance and language …
GBP/CAD consolidation around 1.70 Since topping out around the 1.76 barrier through the summer on a few occasions, GBP/CAD has fallen sharply through trendline support and long-term averages. The July low at 1.7012 was broken at the start of this …
The aussie has been enjoying October as the commodity currency rally has reinvigorated the bulls. Improved risk sentiment is also supporting AUD, although RBA and Fed policy divergence may limit gains further out. But markets seem to have factored in …
The Kiwi is the top performing major in October due to the buoyant risk mood and rising inflation expectations. A hawkish central bank also helps with a solid domestic recovery pushing the RBNZ into action soon. In fact, one prominent, …
EUR/USD long-term downtrend still intact With the dollar on the defensive this week, the EUR rally yesterday extended to resistance at the August low at 1.1665. However, that barrier proved too much, at least at the first attempt. The late …
We get the latest Canada CPI figures tomorrow after the Bank of Canada Business Outlook Survey showed a mixed picture yesterday. Record business confidence and rising investment intentions were offset by increasing price pressures and labour shortages. Wednesday’s inflation numbers …
The market has been ramping up rate hike odds by the Bank of England after more hawkish remarks from Governor Bailey over the weekend. Swaps are fully pricing in a 15bp rise to 0.25% at its next (super)meeting on November …
There is really only one major currency pair to discuss today. USD/JPY is confounding a lot of market watchers this week, mainly due to US Treasury bond yields actually coming off previous highs. Ordinarily, this would see the pair move …
The aussie looked down and out late last month. The China-proxy was embroiled in the Evergrande story and China’s stressed property market while commodity markets were stalling with risk markets subdued. This fairly depressing outlook had seen investors (asset managers …
