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CAD

RBNZ & AU GDP on the radar

• Market jitters. Renewed US/Iran tensions pushed up oil prices. Long end bond yields rose again & equities slipped back. AUD & NZD a bit weaker.• Macro pulse. RBNZ expected to raise rates today. Will its guidance point to more moves? Q2 AU GDP predicted to show sluggish growth. Global Trends Markets have been jittery over the past few sessions with a combination of economic and geopolitical news in the driver’s seat. Macro wise, markets have been absorbing the ‘hawkish’ message delivered by new Fed Chair Warsh at his speech at the end of last week. Chair Warsh raised a...

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Global bond rout intensifies

Good morning. A rout in global bond markets is intensifying and the dollar is climbing as an outbreak in hostilities between the US and Iran revives inflation risks, raises the likelihood of interest rate hikes in the months ahead, and makes safe havens more appealing. Energy prices are ratcheting higher after two supertankers were reportedly struck by anti-ship missiles while passing through the Strait of Hormuz overnight. With the threat of a prolonged disruption once again growing more acute, Brent is trading near $92 a barrel, up 4% over the past week, while West Texas Intermediate stands at $88, up...

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Jackson Hole aftermath keeps dollar supported

Good morning. The dollar is edging off highs reached last week as traders digest Friday’s hawkish tilt in Fed communications, monitor developments in oil markets, and brace for a slew of event risks in the days ahead. Ten-year Treasury yields are holding near their highest levels since early last year, equity markets are setting up for modest declines at the open, and most major currencies are inching higher in convictionless trading. Odds on a rate hike at the Federal Reserve’s September meeting jumped after chair Kevin Warsh underscored a hawkish tilt among policymakers in Friday’s address at the Jackson Hole...

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Canadian economy steadies ahead of trade war escalation

The Canadian economy expanded at the fastest rate since 2023 in the second quarter, but showed signs of decelerating slightly into the third, helping reinforce expectations for a neutral message from the Bank of Canada next week. Numbers released by Statistics Canada this morning showed real gross domestic product growing at a 3.3-percent annualised pace in the three months ended June, matching market expectations and marking a solid rebound from the revised 0.3% expansion recorded in the previous quarter. Exports jumped at a quarter-over-quarter annualised 15.1% pace, business investment rose 12.3%, residential investment climbed 10.4%, and household consumption increased by...

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Traders take shelter ahead of Jackson Hole

Good morning. Most major currency pairs are little changed this morning as traders trim positions and avoid directional bets ahead of tomorrow’s long-awaited address from Federal Reserve chair Kevin Warsh at the Jackson Hole economic symposium. Oil prices are edging lower as talks between Iran and Oman over the fate of the Strait of Hormuz show signs of progress, Treasury yields are holding steady, and US equity futures are set for an advance at the open after Nvidia said it expects to grow revenues by 70% over the next year, beating Wall Street expectations. Data published yesterday morning left Federal...

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