The end-of-month rebound in global equities faded as investors assessed a scaled-back fiscal stimulus proposal in the U.S. against the rising toll of the pandemic.
Oil slipped toward $40 in New York as traders looked to U.S. inventory data for clues on demand recovery. Treasuries were little changed, while the dollar fell.
Yesterday, USDCAD initially climbed from 1.3370 up to 1.3418 – a fresh 7 week high before falling to 1.3325. The pairing then moved back to hold near 1.3360 for the balance of the session. The USD index had rallied 4 consecutive days touching a 2 month high before correcting lower part-way through yesterday's NA session. The USD uptrend has resumed today as the USD index has climbed to a fresh 2 month high again. There were some notable risk off flows during the overnight session with Germany's DAX index down 2%. USDCAD has climbed back above the 1.3400 level this morning and is trading just shy of yesterday's high point.
Stock slumped after data showing high American jobless claims added to concern over a slow economic recovery without further stimulus. The dollar climbed.
Goldman Sachs Group Inc. economists halved their forecast for U.S. growth in the fourth quarter after deciding there will not be additional fiscal stimulus until next year. The researchers led by Jan Hatzius now predict the world's largest economy will expand 3% on a quarterly annualized basis, down from the 6% they previously anticipated.
Stocks slumped to a two-month low amid growing concern over tighter coronavirus restrictions and as a report detailed suspicious transactions at global banks. Treasuries and the dollar climbed. The S&P 500 dropped for a fourth day -- its longest slide since February -- with commodity and industrial companies leading losses. Oil tumbled as Libya signaled the resumption of some crude exports. A new investigation by the International Consortium of Investigative Journalists says JPMorgan, Deutsche Bank AG and HSBC Holdings Plc were among the global banks who "kept profiting from powerful and dangerous players" in the past two decades even after the U.S. imposed penalties on these financial institutions. The documents detailed more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions' internal compliance officers as possible money laundering or other criminal activity, the report said. As U.S. deaths related to Covid-19 approached 200,000, former Food and Drug Administration Commissioner Scott Gottlieb said he expects the nation to experience "at least one more cycle" of the virus in the fall and winter. Germany's health minister warned that the trend of cases in Europe is "worrying" amid expectations that restrictions could soon be extended to London. President Donald Trump said he wants his looming Supreme Court pick confirmed before the Nov. 3 election, escalating pressure on Senate Republicans as he seeks to protect his most vulnerable members.
Yesterday, USDCAD initially climbed from 1.3170 up to 1.3247 – just shy of the 1 month high (1.3260) tested last week - before falling back to 1.3180. Another rally stalled at 1.3230 with subsequent rallies stalling at 1.3220. The rate dropped back to 1.3150/55 in late trade on broad USD weakness as equity markets pared losses and oil prices climbed 4%. The DJIA had opened the day down nearly 400 pts before swinging back into positive territory. The USD broadly weakened during the Asian session with USDCAD falling to 1.3137 before moving back to 1.3170. Canadian retail sales data for July came in lower than expected sending USDCAD back higher to test 1.3200. Equity markets, which have been very volatile these past few sessions have trimmed earlier losses sending the USD broadly lower vs the other majors and USDCAD down to 1.3175 accordingly.
Stocks were pinned deep in the red on Thursday, as caution returned to the market in the wake of the Federal Reserve's decision to keep monetary policy loose for the immediate future. The US dollar rose against its peers.
On Wednesday, the Fed signaled that near-zero interest rates would remain for at least the next three years, as the US economy continues to face risks around the ongoing pandemic. The Federal Open Market Committee issued expectations for interest rates to remain near zero until at least the end of 2023.
U.S. equities advanced with European stocks after data from China and Germany showed the economic recovery is gaining traction. The dollar weakened for a third day, while crude oil rose.
The offshore yuan climbed to the highest level in a year and stocks in Shanghai advanced on evidence that China is accelerating out of the virus slump. Retail sales rose for the first time this year in August and industrial production expanded.
Yesterday, USDCAD initially dropped from 1.3167 down to 1.3120 before climbing to 1.3200. The pair closely tracked equity market flows which were positive in the opening hour only to move lower and finish the day with steep losses. Overnight, it was a similar story with North American equity futures pointing to gains. That led to USDCAD retracing a good portion of yesterday's move with a fall from 1.3195 down to 1.3150. The move lower was short-lived as equity indexes moved into negative territory while oil prices fell back below the $37 level. USDCAD climbed back towards session highs at 1.3194. U.S. inflation data was a touch higher than expected and the USD has recovered the bulk of its overnight losses this morning despite equity markets swinging back into positive territory.
The Dow was flat this morning while the Nasdaq 100 Index has climbed, indicating technology shares will extend their rebound. The euro added to gains after the region's central bank was said to agree that there's no reason to overreact to the currency's strength.
Apple Inc. and Tesla Inc. rose with Nasdaq 100 futures adding 0.9%. The S&P 500 also turned higher even as data showed jobless claims failed to drop last week as anticiapted. Treasuries declined, while gold advanced with the weaker dollar. BP Plc slipped after making its first venture into offshore wind power with a $1.1 billion purchase of U.S. assets from Norway's Equinor ASA.
The USD/CAD pair extended its retracement slide from three-week tops and weakened further below the 1.3200 mark during the early North American session. The pair witnessed an intraday pullback from the 1.3260 area on the back of a strong rebound in crude oil prices, which tend to undermine the commodity-linked currency – the loonie. Adding to this, the emergence of some fresh selling around the USD exerted some additional downward pressure on the USD/CAD pair. The pair eroded a part of the previous day's strong positive move and remained depressed after the Bank of Canada, as was widely expected, left interest rates unchanged at 0.25%. The bank also continued with its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds. Meanwhile, language on the forward guidance was entirely unchanged and hence, did little to provide any meaningful impetus to the USD/CAD pair. Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent bounce from multi-month lows might have already run out of the steam and positioning for any further weakness.
Yesterday, USDCAD initially climbed from 1.3047 up to 1.3162 – a 1 week high. Pullbacks were limited to 1.3120 – above a key tech level @ 1.3090 which had contained USD rallies this week. Overnight, the CAD improved as risk aversion flows eased as NA equity futures were mostly flat. USDCAD declined from 1.3140 down to 1.3077 but moved higher after the release of the Canadian and U.S. jobs data. The U.S. unemployment rate declined further than expected sending the USD broadly higher. Equity markets are selling off yet again with sharp tech losses leading the NASDAQ to a near 10% decline over the past two sessions. Safe haven flows into the USD have led USDCAD higher – all the way back to intra-day highs near 1.3140.
U.S. equities fell as the rotation away from high-flying tech stocks looked set to continue. European shares jumped after France introduced new stimulus measures to drive the economy and spur job creation.
The S&P 500 Index maintained their decline after U.S. initial jobless claims came in slightly better than forecast. Nvidia Corp. and Zoom Video fell in the premarket while JPMorgan Chase & Co. and Bank of America Corp. rose. The euro dipped for a third day on signals the European Central Bank is concerned about the currency's strength. The dollar gained while gold slipped. Treasuries were steady.
U.S. equities rose alongside European stocks as the nearly relentless rally in risk assets continued, supported by dovish comments from policy makers. The dollar rose the most in two weeks. Consumer-staple companies were among the biggest gainers on the S&P 500, with tech shares lagging behind. The Stoxx Europe 600 Index headed for its biggest increase in almost a month. Traders mostly shrugged off data showed U.S. companies added fewer jobs than forecast in August as they awaited the Federal Reserve's Beige Book report on the economy. The euro slid further below $1.20, a level it breached for the first time in more than two years Tuesday. The rally in global stocks has pushed major indexes to record highs as traders bet that a flood of liquidity unleashed by major central banks will make its way to equity markets. The risk-taking was underpinned by dovish commentary from officials including Fed Governor Lael Brainard and European Central Bank Executive Board member Philip Lane on Tuesday. Elsewhere, 10-year bunds rose along with most of their sovereign peers across Europe, benefiting Germany, which took in 33 billion euros ($39 billion) of orders for its first green bonds. West Texas crude oil and precious metals dropped.
U.S. stock rose, with tech once again leading the charge, while European shares drifted. The dollar dropped to a two-year low on growing conviction that U.S. interest rates will stay suppressed, lifting commodity prices.
The Nasdaq climbed almost 1% as Zoom Video Communications Inc. led a market rally in U.S. work-from-home companies after reporting a surge in revenue. Mining shares were among the best performers in the Stoxx Europe 600 as oil, copper and gold gained. The euro strengthened to just below $1.20 and China's yuan touched the highest since 2019. The yield on 10-year Treasuries rose.
On Friday, USDCAD initially dropped from 1.3133 down to 1.3047 before climbing back to 1.3125. USDCAD opened this week at 1.3100 and has moved lower for the 5th consecutive day. The pairing has fallen to the lowest level since Jan. 8th at 1.3022 before moving back up towards 1.3060. Overall, the USD index is at its lowest level since May of 2018.
Yesterday, USDCAD initially dropped from 1.3167 down to 1.3107 before climbing back to 1.3161. A subsequent move lower stalled at 1.3102 and the pairing bounced again to 1.3142. Technically support at 1.3135 which has held on numerous tests this month was broken. Volatility was high after the U.S. Fed officially adopted a new inflation targeting measure which could lead to low interest rates for a longer period of time. The USD initially weakened on the announcement only to recover and briefly trade higher on the session along with the CAD against most major currencies. Overnight, USDCAD dropped to 1.3047 – the lowest level since Jan. 22 ahead of the Canadian GDP report. Although CAD was the top performer yesterday, it has relinquished its gains this morning with USDCAD climbing back to 1.3118.
Bonds and U.S. stocks rose after Jerome Powell reiterated that the Federal Reserve is in no rush to raise interest rates.
Treasury yields fell after Powell said the Fed will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots. Its shift on maximum employment will allow labor-market gains to run more broadly.
The S&P 500 Index and the Nasdaq 100 climbed, extending Wednesday's rally that pushed both indexes to another record close. Abbott Laboratories jumped after winning clearance for a 15-minute Covid test. The dollar weakened versus a basket of its biggest counterparts..
Stocks extended a streak of record gains as investors reviews expectation for loose monetary policy and mulled the pace of the rally. Treasuries and European government bonds declined. The S&P 500 and Nasdaq indexes hit fresh highs for a fourth straight trading session, while the MSCI All-Country World Index climbed to a record. U.S. orders for durable goods rose in July by more than double estimates, indicating factories will help support the economic rebound in coming months. The Dollar weakened while crude traded near its most costly in five months as Hurricane Laura bore down on key refining facilities on the U.S. Gulf Coast.
Global stocks are on the rise as America and China signaled progress on their phase-one trade deal. Treasuries slipped with the dollar.
S&P 500 advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. The Stoxx Europe 600 Index advanced for a second day after figures showed German companies turning slightly more optimistic on the economic recovery.
Oil edged higher as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. U.S. gasoline futures rose to the highest level since March on concern over possible fuel shortages.
The USD/CAD pair dropped to its lowest level since January at 1.3134 on Monday but staged a decisive rebound during the American trading hours. As of writing, the pair was up 0.32% on a daily basis at 1.3212. Earlier in the day, the selling pressure surrounding the greenback helped USD/CAD gain traction. The US Dollar Index started the week on a weak note and fell to a daily low of 92.84 during the European session. In the absence of significant macroeconomic data releases, the risk-positive market environment made it difficult for the USD to find demand. However, the DXY pared its early losses and turned flat on the day above 93.00. Although the reason behind the USD strength was unclear, the fact that Wall Street's main indexes retreated from their opening levels suggests that the risk mood could be softening. At the moment, the index is posting small losses at 93.10. Meanwhile, after advancing to a daily high of $42.89, the barrel of West Texas Intermediate (WTI) erased a large portion of its gains and made it difficult for the commodity-related CAD to stay resilient against the USD. On Tuesday, Conference Board's Consumer Confidence Index and New Home Sales data will be featured in the US economic docket. Later in the day, Bank of Canada (BoC) Deputy Governor Lawrence Schembri is scheduled to deliver a speech.