June 20, 2013

    Markets Tank in Anticipation of Reduced QE

    By / June 20, 2013

    Good morning, There is broad strength behind the US dollar this morning following yesterday’s FOMC meeting that saw the Fed hint at a pull back on QE in September and full completion by mid-2014. Expect the US dollar to continue to strengthen into the end of the year as less stimulus means less growth and a drop in inflation risk in the US. The US dollar has gained nearly 2-cents against the Loonie since the… Read more

    Markets Quiet Ahead of FOMC Meeting

    By / June 19, 2013

    Good morning, Markets are quiet today as traders await the FOMC meeting at Noon (MT); a lack of economic data today increases the focus on the Federal Reserve. If the Fed’s economic projections remain unchanged, the Fed should begin tapering quantitative easing in September or October, as the labour market and GDP gain traction. A Bloomberg survey of economists had a consensus that would see QE taper to $65B/month (from current $85B) in the early… Read more

    May European Car Sales Fall to 20yr Low

    By / June 18, 2013

    Good morning, Russian President Vladimir Putin is on his own among G8 leaders regarding support for Syrian President Assad, who has led the fight against a 2-year uprising that has cost over 90,000 lives. Economic sentiment in Europe posted a modest upside surprise, rising to 30.6 from 27.6 on expectations of 29.4. ECB President Mario Draghi made comments yesterday indicating that the central bank is open to deploying non-standard monetary policy tools (adjusting collateral requirements,… Read more

    Markets Up on Risk Appetite

    By / June 17, 2013

    Good morning, The Canadian dollar has gained 20 basis points against the USD as risk appetite is on the rise today. The Empire State Manufacturing index unexpectedly rose nearly 10 points in June (7.8 from -1.4, consensus of 0.4), even as nearly every indicator fell: new orders, shipments, unfilled orders, delivery time, inventories, number of employees, average workweek. It seems the only indicator that did rise was prices paid (inflationary measure). Technicals remain in favor… Read more

    Mixed Fundamentals; Broad USD Strength

    By / June 14, 2013

    Good morning, The Canadian dollar has softened slightly this morning on disappointing Manufacturing Sales in April that saw Canadian manufacturing drop 2.4% on expectations of a minor 0.3% gain. Lower sales in oil and coal as well as primary metals were largely responsible for the drop, which marks the 4th decline in the previous 5 months. The US Producer Price Index (PPI) grew unexpectedly (0.5% vs. 0.1%) in May on rising gasoline and electricity costs…. Read more

Back to Top