Japan's factory output declined for a second consecutive month as supply disruptions continue to take a toll on manufacturing. Industrial production for January fell 1.3% m/m, worse than the consensus of -0.7%. There was no relief from retail sales for January, which dropped 1.9% m/m, compared to the forecast of -1.2%. Covid health restrictions contributed to the...
Survived another big test
It's been quite the turnaround in the markets over the last 24 hours as traders quickly morphed from panicking about Russia invading Ukraine to seemingly being more hopeful and buying the dips.
The recovery has been nothing short of remarkable, especially when you consider what is still happening in Ukraine. But as we can see in...
Hopes that diplomatic moves could avert a Russian invasion of Ukraine were shattered early Thursday, as Russia launched a full-scale attack. The move was not all that surprising, given the massive Russian buildup on the border with Ukraine during the past few weeks. Still, the fighting in the heart of Europe has weighed heavily on the financial markets, as risk...
The standoff in Ukraine continues to escalate, but the financial markets remain calm for now. The US and other western nations have slapped further sanctions on Russia after Moscow sent troops to two breakaway regions in eastern Ukraine. Despite this, investor risk appetite recovered on Tuesday, and the euro, which is extremely sensitive to the conflict in its...
Brent crude came within a whisker of $100 today for the first time since September 2014 before profit-taking kicked in. Will it eventually capture this level?
There's been a number of times in recent months when $100 oil has been thrown around like it's a case of when rather than if it will hit that massive psychological level.
The shortfall of supply from...
The Japanese yen has started the week quietly and is trading slightly below the 115 line.
The focus will be on Japanese inflation indicators in the coming week, with three events on the economic calendar. Like other major economies, Japan is dealing with a rise in inflation, although the pace has been much more moderate than what we're seeing in the UK or the US....
UK retail sales rebounded in January, with a gain of 1.9% m/m, its highest monthly gain since April 2021. The increase followed a decline of 4.0% in December and beat the consensus of 1.0%. The Omicron variant of corona continues to have a significant impact on consumer spending. The December drop was a result of consumers doing their Christmas shopping in October...
The Japanese yen has moved higher on Thursday, as tensions are once again rising over the Ukraine crisis.
Invasions fears have ratcheted upwards after NATO warned that Russia could use a border skirmish as a pretext for a full-scale invasion of Ukraine. The US has rejected Moscow's claim that it is reducing its military presence on the border and Russia expelled...
The Japanese yen continues to have a quiet week and is trading at 115.46 in the North American session, down 0.12% on the day.
The US dollar enjoyed a boost earlier in the week as tensions between Russia and the West reached a fever pitch. Now that the situation has stabilized somewhat, investors are breathing easier and the dollar has lost ground. Still, there...
It has been a quiet week for the Canadian dollar, despite the crisis between Ukraine and Russia, which has captivated the world's attention. The lack of movement could change on Wednesday, as Canada releases the inflation report for February.
Canada's CPI looked weak in December, with a reading of -0.1% m/m. However, inflation is expected to have jumped in...
The euro has started the week in negative territory, after sharp losses on Friday. EUR/USD is struggling to remain above the 1.13 level.
The crisis on the Ukraine/Russia border has reached a fever pitch, with the US saying it expects an invasion as early as Wednesday. There are some signals that a diplomatic solution can be found, but a Russian invasion remains a...
The next week could be really interesting for cable, with the Fed and BoE being among the two most aggressive central banks and inflation in both countries continuing to rise rapidly.
The pair ran into resistance last month around 1.37, where the 200/233-day SMA band crossed the 50 fib level to provide a considerable barrier of resistance.
It's been on the rise...
Gold is continuing to rally on Thursday and is on course to register an eighth day of gains in the last nine.
That's not bad considering markets are continuing to price in more and more rate hikes from central banks around the world this year.
But perhaps that's also the problem. This isn't a gradual tightening process. It's being driven by inflation that was...
The Canadian dollar has posted slight gains on Wednesday. There are no Canadian tier-1 events on the calendar this week, so we can expect US releases will have a magnified impact on the movement of the Canadian dollar this week.
With the Fed poised to launch a series of rate hikes starting in March and inflation surging in Canada, it's unlikely that the Bank of...
The Australian dollar is showing limited movement on Tuesday, after posting sharp gains at the start of the week. In the North American session, AUD/USD is trading at 0.7133, up 0.10% on the day.
There are no tier-1 events out of Australia this week, but the data released this week is pointing upwards. The AIG Performance of Services Index for December and...
The Canadian dollar has started the week with strong gains, recovering after sharp losses at the end of the week. There are no Canadian tier-1 events on the calendar, so US numbers will have a magnified impact on the movement of the Canadian dollar.
The US nonfarm payrolls outperformed in spectacular style, posting a gain of 467 thousand jobs in January. Many...
The British pound is slightly lower in Friday trading. It has been an excellent week for GBP/USD, which has gained 1.26%. If the pound can maintain these gains during the day, it will mark the currency's best weekly showing since December 2020.
As was widely predicted, the BoE raised rates by 0.25% at Thursday's meeting. This brings the key rate 0.50% and was...
The Australian dollar headed lower earlier in the day before recovering. In the North American session, AUD/USD is trading at 0.7137, down 0.01% on the day.
The RBA policy meeting went as expected, with the bank winding up its bond asset programme while preaching caution. Governor Lowe stressed that the end of QE did not mean that a rate rise was imminent and...
