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British Pound catches bid as BoE hawk warns inflation is embedded
The Pound Sterling (GBP) advances about 0.40% on Tuesday as the Greenback retreats from multi-month highs, boosted by hawkish comments from a Bank of England (BoE) Monetary Policy Committee (MPC) member, while a widening US trade deficit weighed on the Greenback.
Canadian Dollar: Range-bound against US Dollar as political risks linger – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret report that the Canadian Dollar (CAD) is trading flat against the US Dollar, with markets showing little reaction to Quebec’s provincial election.
Australian Dollar advances as markets price in Fed October hold
AUD/USD gains 0.13% on Tuesday and trades around 0.6980 at the time of writing. The Australian Dollar (AUD) benefits from a modest pullback in the US Dollar (USD), as easing US Treasury yields provide support to the pair.
New Zealand GDT Price Index rose from previous -1.1%Â to 1.2%
New Zealand GDT Price Index rose from previous -1.1%Â to 1.2%
Euro finds relief from softer US Dollar ahead of Fed minutes
EUR/USD trades on the front foot on Tuesday, drawing support from a modest pullback in the US Dollar (USD). However, concerns over France’s fiscal position keep the Euro’s (EUR) gains in check. At the time of writing, the pair trades around 1.1255, up 0.29% on the day.
Asia FX: Tech-linked FX could outperform against US Dollar - MUFG
Michael Wan at MUFG argues that Asian currencies have been more resilient than others, supported by strong AI-related exports and a less acute Oil and diesel supply situation in the region.
Euro: Positioning-driven recovery prospects – TD Securities
TD Securities’ Macro Research team, led by Jayati Bharadwaj with contributions from Howard Du and Linda Cheng, argues that recent EUR/USD weakness has been driven by high Oil and diesel prices and French OAT concerns.
Canadian Dollar: Trade surplus supports cautious outlook – RBC
Royal Bank of Canada’s (RBC) Nathan Janzen notes Canada’s trade balance swung to a $4.2 billion surplus in August, helped by higher energy prices and a rush of exports to the United States (US) ahead of new tariffs.
Canadian Dollar gains against US Dollar despite weaker Oil prices
USD/CAD falls 0.15% on Tuesday and trades around 1.4240 at the time of writing, pulling away slightly from recent highs near 1.4300. The Canadian Dollar (CAD) nevertheless remains vulnerable, weighed down by falling Oil prices as signs of improving global crude supply continue to emerge.
US Dollar: Softer jobs data shapes Fed path – UOB
UOB’s Alvin Liew highlights that weaker US September Payrolls and softer wage growth have reduced expectations for an October Federal Reserve rate hike, with markets now focused on September CPI.
Brazilian Real: Political backdrop favors gains against US Dollar - TD Securities
TD Securities highlights a constructive Brazilian Real (BRL) backdrop, with diversified commodity exposure and strong carry. Their short-term fair value model places USD/BRL near 5.00 excluding political risk, but they favor the cross below 5.00 toward 4.60 longer-term.
United States RealClearMarkets/TIPP Economic Optimism (MoM) came in at 46.8, above forecasts (44.5) in October
United States RealClearMarkets/TIPP Economic Optimism (MoM) came in at 46.8, above forecasts (44.5) in October
Canada Ivey Purchasing Managers Index s.a came in at 58.2 below forecasts (65.2) in September
Canada Ivey Purchasing Managers Index s.a came in at 58.2 below forecasts (65.2) in September