January 31, 2014

    Risk Aversion Drops Markets, Spurs USD Higher

    By / January 31, 2014

    Good morning, Risk aversion has a firm grip on markets this morning; equities are down globally while the US dollar is on the rise. The US dollar has risen 40 basis points to a fresh high against the Loonie, now the highest rate since July 2009. Personal savings in the US dropped 0.4% to 3.9% as Americans burned through $46 billion in savings to fund their December spending. Meanwhile, Canadian GDP in November came to… Read more

    Contagion Fears and Weak Chinese Manufacturing Weighs on CAD, New Low Reached Overnight

    By / January 30, 2014

    Good morning, The Canadian dollar reached a new low overnight as investors continue to fear contagion risks in emerging markets and markets digest yesterday’s Fed decision to taper QE a further $10B/month. Preliminary Q4 GDP in the US came in marginally below expectations (3.2% vs. 3.3%); however, the composition was fairly positive, with inventories accounting for only a 0.42% print. Personal consumption made up more than half of the GDP growth; the bad news was… Read more

    Central Bank Intervention in Emerging Markets Spurs Risk Aversion

    By / January 29, 2014

    Good morning, Markets are mixed this morning following several emerging market central bank interventions overnight and leading into today’s FOMC statement at Noon (MT) where the Fed is expected to announce a $10B taper to QE. The Turkish central bank surprised all last night by hiking the overnight interest rates a massive 4.25% to 12% in an effort to halt the Lira’s tumble. The Lira quickly gained 4%, only to reverse course and trade 2.5%… Read more

    Weak US Fundamentals and Global Contagion Fears Spur Risk Aversion

    By / January 28, 2014

    Good morning, Risk aversion has its grip on markets yet again as US fundamentals weaken and unrest in the Ukraine continues. The Canadian dollar has dropped a further 50 basis points overnight against both the USD and Euro. Core durable goods orders in the US fell dramatically in December, dropping 1.6% on expectations of a 0.7% gain. Durable goods orders (including transportation items) plunged 4.3% on expectations of a 1.9% gain as aircraft orders screeched… Read more

    Investors Await Wednesday’s Fed Meeting

    By / January 27, 2014

    Good morning, Markets appear to have stabilized after dropping 2% on Friday; investors are increasingly bullish the US dollar in anticipation of a $10 billion taper to their monthly QE program. The US dollar is heavily expected to gain further strength in the coming months as the Fed further tapers stimulus, leaving the CAD to regain strength into the second half of the year. The Bundesbank has said what many in Europe fear: countries about… Read more

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