Market Outlook

“Canada inflation rate is more persistent than BoC expected, which may warrant for more aggressive rate hike.” Canadian dollar received ample bidding for the week as greenback decides to extend its weakness. Last week, Bank of Canada surprises the market with 100-basis point rate hike to combat rising inflation. Inflation in Canada which currently hovers at an annual rate of 7.7% during

“Two prominent hawks from Fed favors conservative approach in tightening monetary policy.” US dollar extended is drip from higher levels as Fed remains conservative with regards to future policy tightening plans. Previously, investors poured into the greenback as they expect Fed to deliver a super-sized tightening of up to 100 basis point rate hike. However, such expectations waned after

“US inflation soared 9.1%, its highest in four decades.” Greenback extended its bullish thrust, charting at 24-years high against the Japanese Yen. Market participants pours into the US dollar following heightened bets for a faster pace of rate hike from Federal Reserve. Overall sentiments were stoked after recent data shows that US headline and Core CPI Inflation exceed expectation,

“Stubbornly US inflation drove US dollar to a decade high.” Gold price slipped towards mid-$1,700 threshold as investors continue to bet upon “hot inflation” in United States. Several series of data shows persistency in inflation as it continues to hover at four-decades high. Global supply chain disruption is left to blame as world’s largest manufacturing powerhouse – China

“Investors await US Nonfarm Payrolls report which may signal the pace of inflation.” Pound sterling adheres to bearish pressure as market participants placed higher bets upon US dollar prior to Nonfarm Payrolls report. For last month, investors are expecting Nonfarm Payrolls to increase by 268,000, a substantial decrease when compared to previous month. While a downbeat data may be

“Rising energy cost in Europe poses great threat towards its economic outlook.” Euro plunged towards 20-years low against the greenback as Europe’s energy crisis casts a bleak shadow over its economic outlook. German Chancellor Olaf Scholz urged for a swift transition towards green energy to counter Russia’s move of using commodity as a political weapon. With energy crisis brewing in

“Xi’an, the city of 13 million residence enters into lockdown.” Market demand for greenback was invigorated as recession fears send investors scavenging for safe-haven assets. According to reports, Xi’an entered a seven-day period of lockdown after 18 coronavirus cases were reported in the city. Public entertainment venue such as pubs, internet cafes and karaoke will shutdown on

“According to Bank of Canada, inflation is viewed as being more pervasive.” Recently, Bank of Canada announced that consumer expectations for inflation have risen, alongside with concern towards price of food, gas, and rental. In a separate survey, BoC reported that businesses in Canada expects inflation to linger at higher level for longer-term and many is planning to pass the cost onto

“Fears of economic slowdown in UK push waves of risk-aversion in the market.” GBP/JPY oscillates near intraday low of 163.00 as investors shies away due to rising political and economic risk. The Telegraph reported that Conservative Party may reattempt to oust UK Prime Minister by overhauling laws to trigger leadership challenge immediately. On the other hand, latest survey shows that 54%