Explore the world.

Assess underlying market conditions and fundamentals in the world's major economies.

World

Stay ahead.

Follow the biggest stories in markets and economics in real time.

Subscribe

Get insight into the latest trends and developments in global currency markets with breaking news updates and research reports delivered right to your inbox.

After signing up, you will receive regular newsletters from Corpay, and may unsubscribe at any time. View Corpay’s Privacy Policy

CAD

Markets turn negative as threat environment worsens

Markets are back on the warpath this morning, pushing Treasury yields and the dollar toward cyclical peaks. The US ten-year is holding near 16-year highs, the trade-weighted greenback is at its strongest levels in six months, risk-sensitive currencies are retreating, and global oil benchmarks keep pushing toward the $100 per barrel mark. Two major factors are bolstering the US exceptionalism trade: strong domestic demand numbers are forcing investors to capitulate in the face of the Federal Reserve’s higher-for-longer mantra, and risk-reward ratios in other currencies are worsening as soaring oil prices threaten to raise costs in the major energy importing regions. And...

Read More Read More

US exceptionalism trade regains momentum

A bruising week for global Wall Street continues this morning, with the dollar holding steady and major indices paring gains into the North American open. Ten-year Treasury yields are inching slightly lower after climbing to a 16-year high in yesterday’s session, paying more than 4.5 percent at one point. The moves came after the Federal Reserve on Wednesday issued forecasts showing rate cuts happening at a slower and more incremental pace than markets had previously anticipated, and after another weekly claims report beat expectations, suggesting that labour markets remain far from cooling. The number of initial applications for unemployment benefits fell...

Read More Read More

Compromising positions

Ahead of this afternoon’s Federal Reserve meeting, we note that speculators have sharply reduced short positions against the dollar in the last month, with the capitulation coming after a series of stronger-than-expected data releases widened expected performance gaps between the United States and the rest of the global economy. Friday’s numbers from the Commodity Futures Trading Commission showed the net dollar position on the verge of flipping into bullish territory, with long trades on the euro tumbling sharply relative to levels earlier in the year. The net non-commercial futures position on the dollar against the G10 currencies plus the Mexican...

Read More Read More

Pound stumbles, dollar steadies into Fed decision

Participants across the equity, fixed income, and currency markets are holding their collective breath this morning, with many waiting for this afternoon’s rate decision from the Federal Reserve to provide clarity before adjusting positions. Stock markets are setting up for a steady open, 2- and 10-year Treasury yields are virtually unmoved, and the dollar is little changed. Oil benchmarks are giving back some of yesterday’s gains. Prices rose significantly less than expected in the UK last month, giving the Bank of England some breathing room ahead of tomorrow’s rate decision. Numbers published by the Office for National Statistics this morning...

Read More Read More

US Fed in focus

• Some jitters. Rising oil prices & higher Canadian inflation boosted bond yields. Equities were flat. The USD consolidated & AUD ticked up.• US Fed. No policy change is anticipated tomorrow. Focus will be on the Fed’s guidance & forecasts. Markets are already pricing a ‘higher for longer’ view.• Event radar. In addition to the US Fed over the next few days UK CPI (today) is released & the BoE meets (tomorrow). The BoJ meeting is on Friday. A few jitters across markets overnight ahead of tomorrows US Fed decision and press conference (4am and 4:30am AEST). Equities were flat...

Read More Read More