NY Open: Germany takes a shine to sterling
FX Trader, Loonieviews.net
However, there is still plenty of room to the top before the downtrend line from April (currently at 1.3090) is in danger of being broken.
The Bank of Canada didn’t surprise anyone when it left the overnight rate unchanged at 1.5%. The statement said interest rates would gradually move higher guided by incoming data with the bank admitting that it's closely monitoring the Nafta negotiations. USDCAD had drifted down to the bottom of its overnight range after better than expected trade data. The move reversed itself after the BoC statement. USDCAD traders are focused on the renewed US/Canada trade talks that have restarted in Washington.
Prime Minister Trudeau is adamant that any agreement has to include a cultural exemption clause and a third-party dispute mechanism. He didn’t say anything about protecting the dairy supply management program, which President Trump is rabidly against.
The US dollar opened with losses across the board due to emerging market issues and trade tensions. It couldn’t add to the gains in early trading. The greenback has lost ground against the majors with the exception being the Japanese yen. It has stayed rangebound inside a narrow 111.40-70 band. The US trade gap widened to minus $50.1 billion, as forecast. The deficit with China was a record high, which is sure to get Trump’s notice.
Wall Street opened with losses led by a 1.36% drop in the NASDAQ. Traders are focused on the Facebook/Twitter hearings in the US Capital. Trade tensions and EM contagion fears are also weighing on prices.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)