The steady drip of tariff news from US President Donald Trump continued overnight, pushing US equities lower and weighing on risk sentiment globally. The tech-heavy NASDAQ led the decline with a drop of over 2%, while broader US indexes also closed in the red. In Asia, Japan’s Nikkei and South Korea’s Kospi followed with notable […]
Commodity currencies are finding a bid in Asian session today, though still largely range-bound against Dollar. A sharp rally in Copper prices, driven by US tariff fears, is likely giving Aussie a tailwind, countering lingering drag from today’s slightly weaker-than-expected inflation data. Meanwhile, Loonie is benefitting from speculation that Canada may be assigned lower tariffs
Citing sources, the Toronto Star reported on Wednesday that Canada could be on the lower end of the April 2 tariffs. Key quotes Nothing is guaranteed.Trump may impose three escalating levels of tariffs.Despite a recent news report, the tiered approach is not on the table, the sources said it aligns with the government’s understanding of what’s about to
Yen weakened broadly in a relatively quiet Asian session, dragged down by disappointing PMI data. The worrying sign is that both manufacturing and services sectors are now in contraction, pointing to growing signs of weakness in Japan’s economy. Despite expectations that BoJ will raise interest rates further this year, supported by strong wage growth, today’s
Canadian Dollar weakened modestly in early US session following disappointing retail sales data. January’s figures showed a larger-than-contraction, and more importantly, an advance estimate points to another drop in February. This suggests consumer spending might be in a weakening trend, raising fresh concerns about Canada’s economic momentum heading into Q2. However, the selloff in the
Dollar continues to grapple with reversing its recent bearish trend, but momentum behind the rebound remains tentative at best. The greenback has received modest support from Fed’s stance, with policymakers emphasizing there’s no urgency to resume rate cuts. This, combined with a general reassessment of earlier bearish bets, has helped slow the pace of decline
Bank of Canada (BoC) Governor Tiff Macklem is squeezing his money’s worth out of his appearance at the Calgary Economic Development meeting in Calgary, delivering further soundbites about the BoC’s stance in regards to inflation and tariffs to followup his earlier appearance. BoC Governor Macklem is selling a mutated forward guidance approach from the Bank
Canadian Dollar edged higher in early US session after much stronger-than-expected inflation data. However, Loonie quickly lost momentum, as investors remained cautious about Canada’s broader economic outlook, particularly in the face of rising trade tensions with the US. While higher-than-expected inflation reduces the likelihood of another immediate rate cut, Canada’s economy is under serious pressure
Risk appetite in Asian markets has been solid this week, support by optimism surrounding China’s latest measures to boost domestic consumption. Hong Kong stocks continue to lead gains in the region. Meanwhile, in the forex markets, both New Zealand and Australian Dollars are holding firm, though the Aussie is slightly lagging due to rising trade
Forex markets are trading quietly in the Asian session, remaining within Friday’s range and showing little impetus to move decisively in either direction. Dollar is staying on the back foot, with a lack of substantial buying interest to sustain a meaningful rebound. While last week’s non-farm payroll data helped calm fears of a rapid labor
The much-anticipated U.S. non-farm payrolls report came and went without much impact to the markets. With job growth largely in line with forecasts, the data signaled a stable labor market and the balanced outcome offers little guidance to Fed policymakers, who will continue weighing inflation trends, fiscal uncertainties, and global trade risks before committing to
Risk sentiment received a boost in early US trading as January’s PCE inflation data came in line with expectations, lifting hopes that Fed may have room to cut rates in the first half of the year. Both headline and core PCE inflation slowed, adding to expectations that disinflation remains on track. Fed fund futures now
Trading is rather subdued in the forex markets today, with most major pairs and crosses stuck within yesterday’s range. Loonie failed to react to significantly stronger-than-expected retail sales data. Euro dipped earlier following weak PMI reports, but selling pressure quickly fizzled out. Yen saw some volatility during the Asian session, initially weakening alongside Japanese bond
Forex markets remained subdued today, with muted reactions to key economic data. Dollar held broadly higher as traders focused on the US-Russia peace talks, where both sides agreed to continue discussions on ending Russia’s invasion of Ukraine. However, meaningful progress is unlikely without direct involvement from Ukraine and European nations, keeping market uncertainty elevated. Canadian
Trading is relatively subdued today across global markets as investors assess the fallout from the US steel and aluminum tariffs announced by President Donald Trump. Major European equity indexes are treading water, while US futures are slightly in the red. Treasury yields are recovering, though it remains too early to confirm a reversal of the
Dollar edged higher in early US session following the non-farm payrolls (NFP) report, but the overall momentum remains lackluster. Stock futures are flat, while 10-year Treasury yield is staging a slight recovery, suggesting a measured market response as traders hold back from aggressive positioning ahead of next week’s key economic events including US CPI and
The forex market was relatively subdued during Asian session, with one clear exception: Japanese Yen continues to outperform. Fresh data from Japan showed a 2.7% yoy increase in household spending, not only marking the first rise in five months, but also the fastest pace since August 2022. Paired with this week’s solid wage growth figures,
