Taking time to digest

Taking time to digest

Given the busy week just gone, we have dedicated this edition of our look ahead to some of the major questions coming from the trading floor, where naturally some of the big central banks events have been a major focus. Chief amongst these was Wednesday’s Fed...
CAD back to pre-Fed lows ahead of retail sales

CAD back to pre-Fed lows ahead of retail sales

CAD After initially threatening to continue Wednesday’s selloff, USDCAD reversed course yesterday’s morning to ultimately finish the day up 0.3%. The move higher for the pair largely reflected the broader rally for the dollar, coming as traders continued to digest...
Bank of England lays the foundations to cut

Bank of England lays the foundations to cut

The Bank of England has left Bank Rate unchanged at 5.25% once again, in line with consensus expectations and our forecast. The major change today instead came from two adjustments in the Bank’s communications. Firstly, the vote split shifted progressively more dovish...
March PMIs point towards a two speed Europe

March PMIs point towards a two speed Europe

March flash PMIs continue to highlight the contrasting fortunes of European economies. Whilst Eurozone PMIs nudged higher in March, bringing the composite reading to 49.9 to suggest the slump in activity is almost at an end, this improvement hides a growing divergence...
The SNB commences the G10 easing cycle

The SNB commences the G10 easing cycle

The Swiss National Bank today cut its policy rate by 25bps to 1.5%, making it the first G10 central bank to cut rates this cycle. While we believed the SNB would take such action following its dovish pivot back in December, we recently pushed back our call for a cut...
Drop in USDCAD provides favourable entry point for long positions

Drop in USDCAD provides favourable entry point for long positions

CAD Wednesday saw two major risk events for USDCAD play out, with markets ultimately seeing enough to take the pair half a percent lower on the day. Whilst most of this can be chalked up to relief that the Fed’s 2024 median dot failed to move last night, in our view...