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CAD

Canada adds more jobs than expected for a second month, loonie climbs

The Canadian economy again generated more jobs than anticipated last month, suggesting that the economy is beginning to shrug off the tariff shock. According to an update just published by Statistics Canada, 66,600 new positions were added in October and the unemployment rate dropped to 6.9 percent. Consensus estimates—which have become less reliable in recent months—had pointed to 5,000 new hires, with the jobless rate holding at 7.1 percent. 85,100 positions were added in part-time roles, while 18,500 were lost in full-time work. An average 27,200 full-time jobs were added over the last three months, while the part-time component has...

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Dollar retreats as conflicting datapoints skew Fed expectations

The dollar is tumbling against most of its major rivals after a private-sector report showed employers slashing payrolls by far more than anticipated, raising market-implied odds on a third consecutive rate cut at the Federal Reserve’s December meeting. According to the Challenger, Gray, and Christmas job cut report—not typically a market-moving release—businesses laid off 153,074 people in October, up 175 percent from the 55,597 announced in the same month last year, and up sharply from the 54,064 announced in September. Policy-sensitive two-year Treasury yields are back below the 3.6-percent mark, equity futures are setting up for incremental gains at the...

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Market mood improves

• Upbeat mood. Sentiment improved overnight. US equities & bond yields ticked up on the back of some positive data. AUD & NZD also rose.• US tariffs. Legality of President Trump’s tariffs is before the US Supreme Court. Market odds of a decision in Pres. Trump’s favour fell overnight.• Data flow. US Government Shutdown still in place. Official stats on hold. Bank of England could cut rates again tonight. US Fed members also speaking. Global Trends Sentiment rebounded overnight with the bout of risk aversion stemming from equity market valuation concerns across the tech/AI sectors fading. These issues remain in...

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Selloff eases, dollar grinds higher

Currency markets are stabilising this morning as a global selloff eases and the US government shutdown enters a record-breaking 36th day. Asset prices tumbled across the financial landscape yesterday as concern over rarefied valuations intersected with expectations for a slower Federal Reserve easing cycle, but steep losses in the technology sector now appear to be reversing, demand for safe-haven Treasuries is slackening, and risk appetite is—hesitantly—returning in foreign exchange markets. The dollar is trading on a slightly firmer basis along with its safe-haven counterparts, the British pound is enjoying a modest rebound after falling into oversold territory ahead of tomorrow’s...

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Market wobbles return

• Market swings. A bout of risk aversion overnight. Valuation concerns weighed on equities. Bond yields dipped. USD firmer. AUD & NZD lose ground.• RBA hold. No change in rates by RBA yesterday. Updated forecasts & guidance suggest there is a chance no more cuts are delivered, in our view.• US data. US Government Shutdown still in place. Private sector stats in focus. ADP employment & services ISM due tonight. This may generate more vol. Global Trends A burst of “risk off” negative market sentiment has washed through global markets over the past 24hrs. A modestly weak day yesterday in...

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