World Market Update - North America

Market Highlights:

• The Dollar Gains as Risk Unwinds
• Currencies Falter to the Dollar

The Dollar Gains as Risk Unwinds

After ignoring a plethora of poor data over the last week, the markets have finally moved modestly downward over the last two days, and today is no different as we close out the week. Overnight, there was not much on the economic data side to fuel trading, with only Kiwi credit card spending (-0.4% y/y), German PPI (0% vs. 0.1% expectations), and the BoJ Press Conference and rate decision (where they did the expected and kept rates at their previous low levels of 0.10%) being released. However, the European Read Full Article »

Market Highlights:

• Japanese Banks Raise Credit Fears
• Shift in Central Bank Philosophies?
• Ask Karl: Yuan to Be Wild

Japanese Banks Raise Credit Fears

Stock indexes worldwide fell slightly over the trading session after several of the largest Japanese banks announced funding packages aimed at bolstering reserves, raising fears about the global banking sector. Investors headed towards the relative safety of the US dollar and the Japanese yen, and commodity indexes dropped. USD short positions also declined.

The Canadian dollar went for a rough ride over the session, rallying to 1.0450 USD before losing momentum and falling past 1.0600. The 1.0450 level has become a key technical level, and CAD’s failure to break through inspired buyers to step into the Read Full Article »

Market Highlights:

• Asian, European Equities Trade Modestly Lower
• EURUSD Moved by Rhetoric
• Gold and Oil Update

Asian, European Equities Trade Modestly Lower

Asian equity markets traded lower overnight as comments from Fed Chairman Ben Bernanke rippled through the global marketplace following a speech to the Economic Club of New York yesterday afternoon. After suggesting that “significant” challenges could continue to hamper a revival of the world’s Read Full Article »

Ask the FXpert!

Karl Schamotta, Market Analyst for the World Market Update, answers reader questions every Thursday.  Ask Karl your questions about currency markets, foreign exchange, or related topics. Questions not appearing in our newsletter will be responded to personally via e-mail.

Market Highlights:

• APEC Summit Reiterates G20 and IMF
• North American Economic Data

APEC Summit Reiterates G20 and IMF

The world’s love affair with the mother of all carry trades is alive and well this morning as risky assets of all sorts advance once again amid a general tone of risk acceptance. The USD index is trading nearly half a percent lower to start the week while global equities, commodities, and currencies most leveraged for growth continue to power forward amid the broad-based declines for the dollar. The Hang Seng in Hong Kong advanced 1.73% overnight while the Nikkei 225 added 0.20% in value. The DAX in Frankfurt, CAC in Paris and FTSE in London are also up between 0.75% and 1.0% as we head into the European close, with North American markets, furthermore, also trading with a positive tone to start the session. Both oil and gold are Read Full Article »

Market Highlights:

• China Awakes, Commodities Rally
• Loosening of the Yuan Peg Ahead?
• Ask Karl: All Together Now

China Awakes, Commodities Rally

The Canadian dollar hit a three week high over the last trading cycle before pulling back slightly as positive economic reports from China supported global growth expectations. Chinese industrial production was 16% higher this October relative to last year, and trade surpluses doubled. The Dow hit a 2009 high, and Read Full Article »