October 31, 2013

    No Change From Fed, EU Unemployment Weighs on Markets

    By / October 31, 2013

    Good morning, Markets are positioned for the Fed to taper QE in the first half of 2014; however, following yesterday’s FOMC statement, some still believe a December taper is in the cards if the labour market continues to improve. The brief rally in the US dollar has all but been erased this morning, as the CAD regains 0.3% against the greenback. Growth in Canadian GDP slowed less than expected in August, with GDP printing at… Read more

    Mild USD Weakness Ahead of FOMC Meeting

    By / October 30, 2013

    Good morning, This morning, investors await the always much anticipated Federal Reserve policy statement at noon (MT) today. The Fed delayed tapering QE in September as financial conditions and the labor market tightened. No change in policy or rates is expected today as the ongoing situation in the US has continued to deteriorate, with jobless claims on the rise and inflation remaining soft. Many economists now see the Fed tapering stimulus in March ’14. The… Read more

    US Data Misses, India Raises Interest Rate

    By / October 29, 2013

    Good morning, The Indian central bank has raised interest rates as expected by 25 basis points to 7.75%; food price inflation in the world’s second most populous country has surged to a 38-month high of 18.4%. With inflation far outpacing growth, the move to raise interest rates is hardly ‘tight’ economic policy by the RBI. Fears of deflation in China are emerging as the country struggles to control over-leveraged companies and a deeply indebted government…. Read more

    Investors Await Wednesday’s FOMC Meeting, No Change Expected

    By / October 28, 2013

    Good morning, Markets are quiet to begin the week as investors await Wednesday’s FOMC policy meeting. The Fed is not expected to change policy, with many expecting the current QE program to remain in place until March 2014. The Canadian dollar is unchanged today after dropping 1.6% last week following the Bank of Canada’s change to a more neutral stance. Markets are not pricing in any rate hike over the next 12-months; the Loonie is… Read more

    CAD Drops on BoC and Widening Oil Spreads

    By / October 25, 2013

    Good morning, Equity markets are tame and commodities are mixed this morning as investors focus on tightening in China and weak fundamentals in the US. US durable goods orders rose 3.7% in September, well above the forecast of 1.7%; however, weak orders were masked by a monster order for 127 Boeing planes. Stripping out the noisy transportation segment, core durable goods orders actually fell 0.1% on expectations of a 0.6% gain. The Canadian dollar is… Read more

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