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USD

US shutdown finally set to end

• Calm markets. Modest moves in US equities while bond yields dipped. AUD & NZD tick up a bit. AUD also firmer on major cross-rates.• US shutdown. US government shutdown looks set to finally end. Delayed US data should be released over coming weeks. This may see vol. increase.• AU jobs. Monthly jobs data released today. Will the surprise lift in unemployment retrace? Solid report would support RBA ‘on hold’ views. Global Trends Modest moves across markets over the past 24hrs. Solid gains in European equities (EuroStoxx600 +0.7%) weren’t replicated in the US with the S&P500 ticking up slightly (+0.1%)...

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Optimism reigns across financial markets as shutdown nears end

Financial markets are back in risk-on mode as US lawmakers return to Washington for a vote that could end a 43-day shutdown that paused federal government paycheques, delayed vital food aid for millions of Americans, and disrupted global airline travel. House Republicans are expected to support Monday’s spending package in today’s session, clearing the way for a reopening of the government by Friday. The dollar is grinding higher against a basket of its most-traded counterparts, risk-sensitive currencies like the Canadian and Australian dollars are on the march against the safe-haven Japanese yen, benchmark two- and ten-year Treasury yields are slipping...

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Shutdown hopes bolster risk appetite

The dollar is retreating and Treasury yields are slipping as the longest shutdown in American history shows signs of coming to an end. Trading volumes look light ahead of tomorrow’s holiday, but measures of risk appetite are improving and investors are moving out of safe havens like the Japanese yen and Swiss franc into economically-sensitive units like the Aussie, Canadian dollar, and Mexican peso after a group of Democrats crossed party lines to approve a bill that would provide funding through the end of January. Uncertainties still exist: a final vote in the Senate is needed to pass the measure...

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US shutdown impacts showing

• Intra-day swings. More headline driven gyrations on Friday. US equities swung around. USD index a bit softer. NZD on backfoot. AUD a little higher.• US shutdown. Current US gov. shutdown longest in history. Macro impacts starting to show. Pressure on lawmakers to reach a deal is growing.• Event Radar. In Australia the monthly jobs report is due (Thurs). The China data batch is out (Fri). Several US Fed members also set to speak this week. Global Trends Intra-session market gyrations continued at the end of last week with US Government Shutdown newsflow in the driver’s seat. Thanks to a...

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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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