April Canada Unemployment Rate Remains Steady

As the April Canada unemployment rate remains steady, the Canadian economy was seen losing jobs in the month of April, with declines seen by a drop in the part-time workers. The weaker than expected data raised expectations that the Bank of Canada will be holding interest rates unchanged at its meeting this month. Data from Statistics Canada ...

2018-05-18 John Benjamin Read more
JPY Crashes As Q1 GDP Underwhelms

Weakness in Q1 As we have seen across many developed economies this year, Q1 growth in Japan was disappointing, printing -0.6% year over year and -0.2% quarter on quarter. Marking a contraction for the first time on over two years, and ending the longest run of Japanese GDP growth in 28 years, this is clearly a major blow to the BOJ who have be...

2018-05-17 James Harte Read more

Despite all the attention commanded by the US dollar, its Canadian counterpart remains the strongest performing currency since the start of the month and the beginning of the quarter. Negotiations to save the North American Free Trade Agreement (NAFTA) have reached an impasse with no meetings scheduled among the top leaders ahead of month-end. Y...

2018-05-17 Ashraf Laidi Read more
FOMC speeches confirm Fed’s view

The Chairman of the Federal Reserve, Jerome Powell, speaking at a conference sponsored by the International Monetary Fund and the Swiss National Bank in Zurich said that the financial markets have received the information the central bank is on track for gradual interest rate hikes. He said that the markets should not be surprise as the central ...

2018-05-17 John Benjamin Read more
EUR Dives on Weak Q1 GDP Estimate

EURUSD traded sharply lower over Tuesday this week as the latest growth data added weight to the view that the eurozone’s economic recovery is moderating. The flash GDP estimate for the first quarter came in at 0.4% quarter on quarter and just 2.5% year on year, marking a sharp decline from the prior reading of 2.8% year on year in the last quar...

2018-05-16 James Harte Read more
Oil prices rise on US withdrawal from Iran

Crude oil prices rallied last week to hit a three and a half year high after the U.S. President Donald Trump announced that Washington was pulling out of the 2015 Iran nuclear deal on Tuesday. Speaking at a brief press conference, Trump said that the U.S. administration will also be imposing more strict economic sanctions on the country. It g...

2018-05-16 John Benjamin Read more
RBNZ leaves OCR unchanged

Summary: RBNZ leaves OCR unchanged at 1.75% at the monetary policy meeting in May Interest rates left unchanged for the nineteenth consecutive month RBNZ gives fresh economic forecasts. Downgrades GDP and inflation RBNZ pursues dual mandate of employment and price stability The Reserve Bank of New Zealand held its monetary polic...

2018-05-16 John Benjamin Read more
Risks Around Housing And Wage Growth Concern RBA

During one of the quieter weeks of trading so far in 2018, the main news overnight was the release of the RBA’s May meeting minutes. While little was delivered in the way of new information, the minutes confirmed that the risks around housing and wage growth concern the RBA, who is striking a more cautious tone when compared against the last mee...

2018-05-15 James Harte Read more
BoE Holds Rates As Economic Data Weakens

The BoE holds rates as economic data weakens in its meeting last week, matching market expectations. The BoE was initially supposed to hike rates by 25 basis points at this month's meeting. But following a soft patch of economic data, the market expectations fell dramatically. The central bank voted with a 5 - 2 result on interest rates. Two ...

2018-05-15 John Benjamin Read more
EUR Longs Continue To Decrease

EURUSD Non-Commercials reduced their net long positions in the Euro last week selling 60 contracts to take the total position to 120.5k contracts. Despite being only slight in size, this latest positioning adjustment marks the third consecutive week where EUR longs continue to decrease, as investors continue to dial back their ECB tightening ...

2018-05-14 James Harte Read more