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The biggest news last week was Brazil raising its short term rates another 50 basis points to 10%. As shown in the chart below, the Brazilian cental bank is clearly in rate increase mode in an attempt to lower inflation and defend the real. Read more
Monthly reports in the last week for October included the Index of Leading Economic Indicators, up, and accelerating on a YoY basis. Housing permits, an important component of that index, rose to a 5+ year high. The Chicago PMI index also rose to a near 3 year high. Read more
Movement remained choppy amid thin month-end trade after yesterday's U.S. Thanksgiving holiday. USD-JPY and the JPY crosses maintained a bid tone as market participants digested a heavy Japanese data schedule. The numbers broadly reinforced expectations that the economic recovery is intact. Read more
For the duration of this expansion, the US Federal Reserve has described the US expansion as "moderate." The same terms could be used to describe the Canadian expansion, which, were it not for the contribution of consumers, would be printing near 0% growth rates. Read more
MZM is "money of zero maturity." Put in less formalistic terms, MZM is money that can be readily spent. Velocity is the rate at which money moves through the economy; higher velocity means each dollar is being spent faster while lower velocity means each dollar is being spent at a slower pace. The above chart tells us that liquid funds are now moving through the US economy at nearly the slowest pace on record. Read more
Movement overnight remained choppy amid thin month-end trade after yesterday's U.S. Thanksgiving holiday. USD-JPY and the JPY crosses maintained a bid tone as market participants digested a heavy Japanese data schedule. The numbers broadly reinforced expectations that the economic recovery is intact. Read more
Movement overnight remained choppy amid thin month-end trade after yesterday's U.S. Thanksgiving holiday. USD-JPY and the JPY crosses maintained a bid tone as market participants digested a heavy Japanese data schedule. The numbers broadly reinforced expectations that CPI is improving and the economic recovery is intact. Read more
The FX majors consolidated moves during the European afternoon as the U.S. Thanksgiving holiday weighed on volumes. USD-JPY carved out a new trend high at 102.37 and then stalled as large option barrier exposure from 102.50 capped. EUR-USD was static at 1.3600 as resistance at 1.3625-30 capped an early rise in Europe, which also left USD-CHF close to 0.9050 throughout. Read more
Movement was limited in Asia across the FX majors as order flow was kept to the minimum into today's U.S. Thanksgiving holiday. AUD posted the biggest move from 0.9080 to 0.9140 amid an unexpected rise in Australia Q3 capex by 3.6% q/q and NZD rose from 0.8120 towards 0.8180 amid a rise in business confidence from 53.2% to 60.5% in October. Read more
Movement was limited in Asia across the FX majors as order flow was kept to the minimum into today's U.S. Thanksgiving holiday. AUD posted the biggest move from 0.9080 to 0.9140 amid an unexpected rise in Australia Q3 capex by 3.6% q/q and NZD rose from 0.8120 towards 0.8180 amid a rise in business confidence from 53.2% to 60.5% in October. Read more
