Canadian Dollar

Loonie Spikes After Bank Of Canada Raises Rates For The First Time Since 2010... As Expected

Heading into today's meeting with a smorgasbord of 'relatively' good data recently, Governor Poloz had the perfect excuse to raise rates (for the first time since 2010) and tamp down the firey bubble in home prices. Not a total surprise, given hawkish comments from BOC officials in recent weeks, but the Loonie is surging on the hike but CAD stocks (which were rallying into the decision) are limping lower.

Frontrunning: July 12

  • Yellen to Address Interest Rates, Balance Sheet (WSJ)
  • Stocks Rebound as Dollar Dips on Trump Revelations (BBG)
  • Trump Jr.'s Russia emails could trigger probe under election law (Reuters)
  • Trump Jr. Emails Fan the Flames of Russia Probe (WSJ)
  • Trump’s Credibility Dealt Blow by His Son’s Emails (BBG)

Bond Selloff Returns As EM Fears Rise; Oil Slides; BOJ Does Not Intervene

U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent "show and awe" from OPEC.

PBOC Hires Blockchain Engineers Who Will Oversee Creation Of The "Digital RMB"

“The People’s Bank of China’s institute of printing science is offering six positions for the design and development of digital currency-related software and hardware framework, a recruitment notice said, adding that candidates with experience in blockchain and Big Data technologies will be preferred."...

Euro Surges, Yields And Stocks Rise As Central Banks Deliver Coordinated Message

The euro soared to the highest level in over a year while bond yields and global shares also climbed, as an ongoing barrage of coordinated hawkish comments from central banks signaled the era of easy money might be coming to an end for more than just the United States. S&P futures were fractionally in the green following the best day for US equities in two months.

Loonie Spikes To 5-Month Highs After Poloz, Patterson Double-Whammy

Following Bank of Canada's Poloz restates his bias for higher rates earlier in Sintra, now BoC deputy Patterson confirmed "the oil shock is largely behind us" and hinted that low rates were no longer needed. This is the biggest spike in the Loonie since March 2016, pushing it back to its strongest against the dollar since early Feb 2017.

Global Markets Rebound As Tech Rout Ends; Sterling Rises

As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.

Is This The "Mystery" Massive Long Supporting The Oil Market?

"I know this theory is a little out-there. But I look at the recent expansion of crude oil net positioning, and it just doesn’t reflect what I see in the market. China as a big silent buyer is a much more plausible explanation than the fact hedge funds are net long record crude oil because they are so bullish."

Global Rally Fizzles After "OPEC Shock" In "Slow Risk-Off Session"

S&P futures were fractionally lower from yesterday's record high as European stocks declined and Asian stocks were mixed, pressured by yesterday's 5% plunge in crude after OPEC unexpectedly "failed to surprise" markets, and announced the bare minimum supply cut extension that was expected by oil traders, who in turn puked long positions.

Why The Chinese Yuan Won't Be The World's Reserve Currency

"The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations." Disconnected from the dollar, yes - but not connected to the yuan...

Europe, US Futures Slip Despite Brent Bouncing Back To $51

Asian stocks rise lifted by commodity names; European equites trade mostly lower but with little in the way of conviction or firm direction while the Italian banking index is at the highest level in a year following domestic earnings; S&P index futures are modestly in the red after the cash market closed at a record high Wednesday and investors prepared for earnings from retailers.