Markets were generally cautiously towards the end of last week as investors awaited G20 meeting. Though, some underlying developments are worth noting. Firstly, dollar did seem to found a bottom as we anticipated, with expectation gradually shifting from an aggressive one-off QE II program to a gradual one with an View full post on Action Insight [...]
Canadian inflation data showed headline CPI accelerated from 1.7% yoy to 1.9% yoy in September. However, core CPI unexpectedly dropped from 1.6% yoy to 1.5% yoy. Retail sales came in much stronger than expected by rising 0.5% mom in August while ex-auto sales rose 0.4% mom. Nevertheless, the data did View full post on Action Insight [...]
Markets are generally steady as G20 summit in South Korea starts today. Currency war with be a major theme of the meeting and there are speculations that members will pledge to refrain from competitive undervaluation of their currencies in a joint statement after the meeting. US would push for FX View full post on Action Insight [...]
Euro is noticeably stronger against other European majors today on solid manufacutring data. Manufacturing PMI beat market expectations and rose to 54.1 in October from 53.7 a month ago. The reading for Germany alone also improved to 56.1 from 55.1 in September. The market had anticipated a drop. The readings View full post on Action Insight [...]
Markets are pretty steady today. A bunch of data was released from China in Asia today. CPI and PPI were both strong at 3.6% yoy and 4.3% yoy respectively. GDP slowed slightly to 9.6% but was above expectation of 9.5%. In general, the data justified the unexpected rate hike earlier View full post on Action Insight [...]
Markets generally reversed yesterday’s sharp move as solid earnings from Boeing and Yahoo lifted risk appetite. Stocks are back near to recent high while dollar pared much of this week’s against major currencies. The greenback has indeed made another 15 year low against Japan yen. Nevertheless, note that Crude oil View full post on Action Insight [...]
The BOE minutes unveiled that policymakers voted 7-1-1 in October to leave the Bank Rate unchanged at 0.5% and the asset buying program at 200B pounds. While the majority continued to support staying sidelined, Adam Posen preferred to maintain the policy rate at 0.5% and increase the size of the View full post on Action Insight [...]
Risky assets stabilize today after yesterday’s selloff and dollar retreats mildly. Main focus will turn to UK for the moment as markets await the Comprehensive Spending Review as well as BoE minutes. Chancellor of the Exchequer George Osborne provides details of budget cut today in the review. His austerity measures View full post on Action Insight [...]
Risk assets tumbled sharply today, triggered by unexpected rate hike from China. DOW was down 165pts to close below 11000, Crude oil broke 80 psychological level while Gold breached 1330. Dollar and yen were both pushed up sharply against other major currencies. Dollar index broke 77.93 near term resistance while View full post on Action Insight [...]
Risk assets tumbled sharply today, triggered by unexpected rate hike from China. DOW was down 165pts to close below 11000, Crude oil broke 80 psychological level while Gold breached 1330. Dollar and yen were both pushed up sharply against other major currencies. Dollar index broke 77.93 near term resistance while View full post on Action Insight [...]