Market Overview

A critical driver in the foreign exchange market, and the global capital markets more generally, is the continued preparation by the Federal Reserve for a rate hike, while many other central banks,...

A recent Bloomberg article notes that household leverage in Australia is now almost twice the developed-market average. Specifically, the article states that Australia’s household debt as a...

A new sentence in the Fed monetary policy statement has put a December rate hike by the Fed back on the table. G10 currencies slid against a resurgent USD, while the worst was left for emerging market...

Fed Chop & Change. Not Like Anyone is Listening, Right?: Following this morning’s FOMC statement, the Federal Reserve have done their best to put the December meeting in...

Australian dollar drops sharply in Asian session after release of consumer inflation data. Headline CPI rose 0.5% qoq, 1.5% yoy in Q3, below expectation of 0.7% qoq, 1.8% yoy. The year-over-year rate...

The bond market pricing for a Reserve Bank of Australia (RBA) rate cut on 3 November jumped from below 30% to 61% after Australian Q3 CPI came in below expectations. The Aussie dollar instantly...

This week the scorecard recommends buying CAD, NOK and NZD, while selling EUR, USD and CHF.Last week's signals resulted in a 1.6% loss. Especially the long NOK and SEK positions were expensive, while...

EUR/USDOutlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): BearishFundamental: EUR continued its downward trend against the USD following European Central Bank chief Mario...

The combination of the dovish signals from the European Central Bank and the rate cut Friday by the People’s Bank of China lifted the US dollar just as it was threatening to fall through the...

The media loves to report that Saudi Arabia is on the edge of a financial cliff. Last week, the Guardian reported on a “secret” memo in which King Salman ordered “unprecedented...

The Forgotten Central BankSince the beginning of the week, today’s European Central Bank meeting has been earmarked as the most important data point and there is much reason to believe that it...

Absolutely, given the collapse in Chinese equities yesterday, with the CSI 300 falling 3.6% in the last two hours, in turn causing AUD/USD to drop 70 pips or so (see Bloomberg chart below).There is no...

It’s uncertain what caused the selloff in Chinese markets yesterday. Was it rumours the government was going to pull market support? Concerns about Sinosteel missing its interest payment? Or did...

Canadian Club: In yesterday’s Daily Market Update, we took a look at trading the Bank of Canada interest rate decision in the wake of elections, which saw the Liberal’s Justin Trudeau...