October 26, 2012

    Markets Quiet Leading into Weekend

    By / October 26, 2012

    Market Comment Markets are unchanged from yesterday’s close, though risk aversion propped up the USD overnight; the USD/CAD continues to trade within a 100bp trading range. US Q3 GDP Beats Consensus With only a week and a half before the US Presidential election (Nov. 6), it comes as no surprise that US Q3 GDP narrowly beat expectations: 2.0% vs. 1.8%. With that said, the devil is in the details: government consumption contributed over one-third of… Read more

    BoC Signals Rate Hike “Less Imminent”

    By / October 25, 2012

    Good morning, With the US and Canadian central bank meetings behind us (with largely no surprises there), everyone is now focusing back on Europe and the upcoming US elections. The Bank of Canada’s interest rate statement and subsequent speech from Mark Carney brought some price action into the USD/CAD yesterday. The Canadian dollar sold off nearly half-a-cent following Carney’s comments that a rate increase is ‘less imminent’ given the moderate global growth and record high… Read more

    Diverging Central Bank Policy Supports CAD

    By / October 24, 2012

    Market Comment Markets appear poised to regain some of yesterday’s 2% selloff following positive Chinese manufacturing data and Q3 earnings out of Boeing and Lockheed Martin. Investors eagerly await the FOMC interest rate announcement at 12:15pm (MT). Central Bank Divergence The Canadian dollar is trading marginally higher, primarily based on diverging monetary policies from the Bank of Canada and Federal Reserve. The FOMC is expected to maintain interest rates at 0.25% today; however, many analysts… Read more

    Risk Aversion Spurs Global Selloff

    By / October 23, 2012

    Market Comment Risk aversion has markets in the red across the globe on Spain, the US Presidential debate, and weak earnings. Bank of Canada Statement Surprises Investors The Canadian dollar sold off overnight, only to surge 70 points upon the release of the Bank of Canada’s interest rate statement. After all of that action, the Loonie is trading 20 basis points stronger than yesterday’s close. Contradicting his comments from only a week ago, governor Carney… Read more

    Ottawa Blocks Petronas/Progress Deal

    By / October 22, 2012

    Market Comment Markets are quiet and continue to trade within a tight range; investors will be playing the waiting game until the FOMC and Bank of Canada interest rate meetings on Wednesday. Ottawa Steps In; Blocks Deal Ottawa moved to block Petronas’ bid to acquire Progress Energy over the weekend, sending the Malaysian state oil giant back to the drawing board. This decision will definitely weigh on markets as foreign firms will be wary of… Read more

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