US economic data may have been broadly disappointing, but that didn’t prevent the US dollar from gaining across the majors as relative fundamentals continue to benefit the greenback. Indeed, the bulk of the dollar’s gains came during the European trading session, as the New York trading data proved to be…
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The dollar rose against most key currencies on Friday. US stocks had its biggest weekly gain since 1974 despite the largest US consumer-spending drop in four years and plunging Chicago PMI business sentiment. Federal Reserve Chairman Ben S. Bernanke said the market for mortgage-backed bonds will require some form of…
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The Euro-Dollar continued its retreat from its high this week near 1.33. After a strong rally during the middle of the week, the pair has retraced to the 61.8% level around 1.27. This week showed markets returning to some of their pre-credit crisis ways, though how things go next week…
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The dollar resurged in intraday trading posting strong gains against the majors as the risk aversion trend continues influence market movements. The EurUsd sunk 200 pips to the low range of 1.27, while the UsdJpy declined roughly 60 pips finding support at 98. The GbpUsd collapsed 360 pips to the…
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The global financial system has suffered a severe and virtually unprecedented blow, leading to the failure of a number of major institutions and forcing government intervention on a massive scale in a number of countries. This is a shocking development that reflects the fallout from acute economic and financial imbalances…
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The biggest housing and credit bubble in history, which had its roots in the United States, is now threatening the entire global financial system. However, with the world economy slowing down, export dependent countries like Australia could face the biggest risk of falling into a much sharper recession.
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The financial crisis unfolded beyond our wildest imagination over the past month. The VIX index, a measure of expected volatility in equity markets, rose to a record-high of 77; the US Ted spread, the difference between secured and unsecured lending, sky-rocketed to 4.6 percentage points and the credit default swap…
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Over the past two months, central banks and governments around the world have waged an escalating battle against the ravages of the credit crunch. Monetary policy has played a role that - if not quite central - has at least helped to improve market psychology and to provide a cushion…
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The combination of a deteriorating outlook for the US economy, falling commodity prices and persistent financial market volatility are boosting the downside risks to Canada’s economic outlook and will likely see the Bank of Canada lower the policy rate by 50 basis points at next week’s meeting. Despite a concerted…
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We still expect the Fed to lower the Funds rate by another 50 basis points before the year’s out with the odds favouring the move at the October 29 meeting. Economic data have been weaker-than-expected and risk a sharper downturn in Q3 and Q4 than in our baseline forecast. More…
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