James Knightley, Chief International Economist at ING, suggests that they don’t expect a surprise in inflation data of Canadian economy as of September, when inflation shocked the consensus by coming in at -0.4% month-on-month. Key Quotes “We’re looking for a 0.2% MoM rise, with energy prices the main contributor.” “September’s inflation estimate was wrong partly because analysts
Analysts at UOB suggest that EUR is expected to trade sideways, likely not straying much out of yesterday’s 1.1359/1.1424 range. Key Quotes “24-Hour View: Against our expectation for a dip below 1.1356, EUR traded mostly sideways within a 1.1359/1.1424 range yesterday. Indicators are mostly flat now and the current movement is deemed as part of
Robert Rennie, Research Analyst at Westpac, suggests that they have stuck with a neutral bias for USD/JPY for some time with the strong caveat that they would switch to a buy on dips 111.00/112.50. Key Quotes “This area appears to have worked well though clearly could be subject to further tests given the key event
According to a leaked draft Brexit document, as cited by Bloomberg, EU-UK is said to commit to build on ‘single customs territory’. Additional Details: Foresees equivalence for UK banks. EU, UK to commit to ‘deep’ customs cooperation. To commit to build on ‘single customs territory’. States determination to replace the backstop in the future. EU
   •  Stalls overnight retracement slide and finds some support at lower levels.   •  Renewed weakness in oil prices undermine Loonie and extend some support.   •  The prevalent USD selling bias does little to provide any meaningful impetus. The USD/CAD pair caught some minor bids on Thursday and traded with a mild positive bias through
The index trades with red figures around the 96.60 region. Low volatility is expected today as US markets will be closed. Brexit, Italy set to dictate the sentiment today. The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, is trading on a weak note in the 96.60 area
Brexit anxiety keeps any recovery attempts short-lived and bulls under control. US dollar appears buoyed by risk-off in the European equities, as thin trading persists. The GBP/USD pair stalled its recovery from four-day lows of 1.2765 just shy of the 1.28 handle in early Europe and entered a phase of consolidation below the last, as
According to analysts at Rabobank, the market is forcing OPEC’s hand into cutting production at the upcoming meeting and if no cut is announced, we can expect prices to fall sharply. Key Quotes “Our baseline forecast is a 1mb/d cut, which in our view would balance the market in 2019.” “The closely followed US inventory
Tim Riddell, Research Analyst at Westpac, points out that the continued pullback in Eurozone activity since early 2018 is now being acknowledged by ECB and EU officials as more sustained than an interim adjustment to the strength seen in 2017. Key Quotes “Core inflation may be stable, but it persistently fails to display any upside
   •  The prevalent USD selling bias keeps a lid on any follow-through up-move.   •  JPY further benefits from safe-haven flow amid weaker European equities.   •  Holiday-thinned liquidity conditions might help limit any deeper losses. Having posted weekly tops, around the 113.20 region, the USD/JPY pair started correcting and dropped to fresh session low in
Analysts at Danske Bank note that the European Commission announced its final verdict in Italy’s 2019 budget plan and is judged to be “particularly seriously” non-compliant with the debt criterion (i.e. insufficient reduction in its debt/GDP ratio) and the budget envisions marked backtracking on past growth-enhancing structural reforms which warrants opening of a debt-based excessive
Edward Lee, Chief Economist at Standard Chartered, points out that Singapore’s final Q3 GDP growth was revised lower to 2.2% y/y from the advance print of 2.6% and the downward revision was sharper than expected. Key Quotes “Manufacturing sector GDP growth was largely anticipated to be lowered, given a surprisingly soft industrial production print in
   •  The prevalent USD selling bias continues driving the commodity higher.   •  Fed rate hike uncertainty beyond 2018 remained supportive of the move.   •  Bullish traders seemed unaffected by improving global risk-appetite. Gold prices edged higher on Thursday and moved within striking distance of two-week tops set in the previous session.  A combination of
The pair is up smalls around 1.1400 the figure on Thursday. The greenback remains under pressure and close to 96.50. ECB minutes next of relevance in Euroland later in the day. EUR/USD continues its slow recovery following Tuesday’s deep pullback to the 1.1360/55 band, managing to advance for the second straight session and regain the