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CAD

Currency market fireworks remain subdued as traders process conflicting signals

Good morning. Foreign exchange markets are caught between conflicting forces as precious metals extend their decline and a sell-off in technology stocks shows signs of exhaustion. Gold and silver prices are tumbling once again, North American equity futures are setting up for modest gains at the open, and the dollar is advancing against most of its major peers amid choppy trading conditions. The pound is down sharply after the Bank of England narrowly avoided cutting rates in its latest decision, shocking observers expecting a far more neutral outcome. Four of nine Monetary Policy Committee members voted to cut rates—well beyond...

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Push-pull forces

• Push-pull. A few equity market wobbles overnight. USD a bit firmer. NZD underperforms. AUD retraces its RBA rate hike induced uptick.• Macro events. ECB & BoE expected to hold rates steady tonight. US JOLTS also due. US jobs report has been delayed until next week. Global Trends There were a few market wobbles overnight as various forces pushed and pulled on sentiment. US equities slipped back with the tech-focused NASDAQ underperforming (-1.5% vs S&P500 -0.5%). Some disappointing earnings results and a rotation out of the software and chipmaking tech stocks that have driven the market rally were factors at...

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Tech washout leaves currency markets directionless

Foreign exchange markets are looking somewhat rudderless this morning after a technology-led selloff hammered the biggest US stocks yesterday and dampened global risk appetite. The dollar is extending its gains in thin trading, Treasury yields are modestly lower, and equity futures are pointing to another downward lurch at the open. The latest US government shutdown has ended, but key data releases including Friday’s non-farm payrolls report have been delayed, which should limit volatility—provided that White House social media accounts don’t light up once again. An rollout of productivity tools by Anthropic triggered yesterday’s rout, punishing companies that provide data and...

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Calm returns, dollar resumes its slide

Good morning. Foreign exchange markets are trading on a more stable footing as tumult in the precious metals complex eases and the White House leaves its social media accounts in a state of benign neglect. Gold and silver prices are up five and ten percent respectively from their lows, North American equity markets appear set for an advance at the open after yesterday’s higher close, Treasury yields are little changed, and commodity-linked currencies are reversing some of their weekend losses. The euro, pound, and yen are all trading sideways as investors await Thursday’s central bank meetings and brace for the...

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RBA in focus

• Metal vol. Large swings in gold & silver prices. Positive US data supported the USD index. AUD held up thanks to some relative outperformance.• RBA today. On net, a RBA rate hike looks more likely than not. But there is the chance of a surprise. What the RBA says about the future also matters. Global Trends Various financial markets continue to whip around with volatility continuing at the start of the new week. During yesterday’s Asian session gold and silver prices tumbled further, US equity futures opened lower, and the USD recouped a little more lost ground as markets...

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