Over the past month, USD/CAD has fallen 4.5% as the Canadian dollar soared against the greenback. There have been a string of positive economic reports including the unemployment rate which dropped to its lowest level in 18 months
Three central bank monetary policy announcements, inflation and GDP reports from the U.S. and Eurozone makes for a busy trading week
Inflation will be on everyone’s minds tomorrow when the U.K. and Canada release consumer price reports. It is no secret that everyone is worried about inflation.
Investors are worried that spending will weaken despite strong earnings in the financial sector. Economists are looking for retail sales to fall -0.2% in September after rising 0.7% the previous month.
Euro hit a year to date low against the U.S. dollar on Tuesday after quietly trending lower for the past 5 weeks. Economic performance and monetary policy direction are the two most important drivers of currency flows and in the case of euro, both have been calling for further weakness.
This will be another busy week for the foreign exchange market. Inflation and spending – two of the most important elements of Federal Reserve policy will be in focus.
A good #NFP number is not a done deal. While ADP reported higher private sector job growth and there were fewer jobless claims on an average basis, the employment component of ISM services, which has a very strong correlation with NFP declined.
October is traditionally a volatile month in the financial markets and we got a taste of those big swings today with risk appetite reversing suddenly.
Investors kicked off this busy trading week with concerns about how central bank policy will shift in a broader recovery.
October is generally a challenging month for equities with some of the biggest market crashes happening this month but the fourth quarter is typically a good one.
The U.S. dollar traded sharply higher against all of the major currencies on Tuesday as Treasury yields surged and stocks plummeted.
Investors kicked off the week with renewed demand for U.S. assets. The Dow Jones Industrial Average rallied for the fifth straight trading day while the U.S. dollar strengthened versus the euro, Japanese Yen and Swiss Franc.