Author: FX

The Bank of Canada cut rates by 25 basis points to 4.25% from 4.5%. That was the odds on favorite but there was some hope for a full 50 bp cut. On the Global economy, the statement said:Global economy grew by approximately 2.5% in Q2.U.S. growth stronger than expected, driven by consumption, but labor market slowed.Euro-area growth boosted by tourism and services; manufacturing remains weak.China faces weak domestic demand impacting growth.Global financial conditions eased, bond yields declined; Canadian dollar appreciated modestly.Oil prices lower than projected in July.On the Canadian Economy , the statement saidCanada’s Q2 growth at 2.1%, led by…

XAU/USD rises 0.05% to $2493, with prices rebounding after hitting a daily low of $2471. Weaker-than-expected US JOLTS report fuels speculation of a 50 bps Fed rate cut in September. Falling US Treasury yields and a softer US Dollar support Gold, despite volatile profit-taking throughout the session. Gold’s price aimed higher during the North American session after weaker-than-expected jobs data in the United States (US) increased the odds for a 50-basis point (bps) rate cut by the Federal Reserve. Additionally, US Treasury bond yields dropped and undermined the greenback, which is inversely correlated to the golden metal. Therefore, the XAU/USD…

LONDON (Reuters) – HGlobal companies including Anheuser-Busch InBev, Coca-Cola (NYSE:) and Target have suffered hits to sales and, in some cases, reputations, after shoppers boycotted their products or services over the years. Consumer boycotts date back at least as far as an 18th century anti-slavery sugar protest in Britain. In more recent years, activists have used social media to target companies whose policies are perceived as irresponsible. Below are examples of situations that led to consumer boycotts: ISRAEL’S WAR IN GAZA * Israel and Hamas have been waging war since gunmen from the Palestinian militant group stormed into southern Israel…

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The Bank of Canada (BoC) reduced its target for the overnight rate by 25 basis points to 4.25% today, marking the second consecutive rate cut in its monetary policy tightening cycle.  This outcome was widely expected as discussed in our Event Guide. In its statement, the BoC noted that: The global economy expanded by about 2.50% in the second quarter, in line with July projections Canada’s economy grew by 2.1% in Q2, slightly stronger than forecast Inflation slowed further to 2.5% in July, with core inflation measures averaging around 2.5% High shelter price inflation remains the biggest contributor to total…

GBP/USD breaks above 1.3140, gaining short-term momentum as RSI tilts in favor of buyers. Clearing 1.3200 opens the door to challenge the YTD peak of 1.3266, with further resistance at 1.3300. Sellers must push below 1.3140 to test key support levels at 1.3100 and 1.3043. The Pound Sterling enjoys a good rebound off the weekly low of 1.3087 and rises in early trading on Wednesday during the North American session, climbing over 0.22% against the Greenback.  Soft US jobs data increased the odds of a 50-basis points rate cut by the Federal Reserve and underpinned the GBP/USD higher, trading at…

Prior month $-73.1 billion revised to $-73.0 billionGoods trade balance $-102.84 billion versus $-96.56 billionServices surplus $24.3 billion versus $24.2 billion last monthOther details: Exports +0.5% versus +1.7% last month.Imports +2.1% versus +0.6% last month.Total exports $266.6 billion versus $265.279 last month. Higher Total imports $345.39 billion versus $338.28 billion last month. Higher.Capital goods imports $83.45 billion versus $80.188 last month. Higher.Trade deficit with China -$30.12 billion versus deficit of $-22.18 last month.July oil import price $75.96 versus $74.113 last month. +11.5% from last year’s $68.11Although near expectations, the trend in the trade deficit is continuing to increase (see chart…

The US Dollar trades sideways in a tight range this week ahead of key US employment data.  Markets brace for JOLTS numbers after ISM Manufacturing PMI did not move the needle.  The US Dollar Index remains just below an important technical level.  The US Dollar (USD) trades sideways on Wednesday ahead of some key US economic data. Meanwhile, equity markets have a severe hangover with tech stocks selling off. The nosedive took place after NVIDIA (NVDA) received a subpoena from the US Justice Department on whether the chipmaker violated antitrust laws.  On the economic data front, all eyes will be…

By Julie Zhu and Selena Li HONG KONG (Reuters) – A top 10 Chinese fund manager has asked senior executives to return pay received over the past five years that exceeds a new cap, to tally with a government initiative promoting economic equality, said two people with direct knowledge of the matter. China Merchants Fund Management (China Merchants FM) wants the executives to repay income beyond a 3 million yuan ($421,330) limit imposed this year for each year from 2019 to 2023, the people said. The firm, wholly owned by China Merchants Group (CMG) – one of the country’s largest…

Services PMI 54.6 vs. 54.5 expected and 53.9 prior.Composite PMI 53.5 vs. 53.4 prior.Key findings:Uplift in growth despite weaker rise in new work. Slowest cost inflation since March 2021. Sentiment down to eight-month low.Comment:Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said: “While the Spanish are enjoying their summer holidays, there is little movement in the HCOB Purchasing Managers’ Indices as well. The HCOB Composite PMI continues to signal solid growth and remains nearly unchanged compared to July. As in the preceding months, growth is primarily driven by the strong services sector, while momentum in…