Highlights Rising Global Yields: The increased turbulence in global bond markets is part of the adjustment process to a more positive outlook for global economic growth. Rising real yields are now the main driver of nominal yield…
Highlights The pandemic is not yet over, but it appears that infections have peaked in the developed world and in most of the major developing economies. Economic growth will reaccelerate as social distancing abates and vaccination…
Australia’s January NAB business survey sent a broadly positive signal. Even though business conditions declined to 7 from 16, they remain positive and above average. Moreover, business confidence rose to 10 from 5.…
According to BCA Research’s Foreign Exchange Strategy service highlights a tactical opportunity to go short the AUD/MXN cross. Three catalysts underpin this thesis: relative economic activity, valuation, and sentiment.…
Highlights For the month of February, our trading model recommends shorting the US dollar versus the euro and Swiss franc. While we agree a barbell strategy makes sense, we would rather hold the yen and the Scandinavian currencies.…
At its meeting on Tuesday, the Reserve Bank of Australia surprised the consensus by announcing an increase in its quantitative easing measures, adding another A$100 billion in government bond purchases and extending the program…
Highlights Global Yields: The fall in global bond yields over the past two weeks represents a corrective pullback from an overly rapid rise in inflation expectations, especially in the US. The underlying reflationary themes that drove…
AUD/USD is rapidly approaching 0.8, however, the Aussie is likely to correct before breaching above this important level. Technically, 0.8 has historically been such an important support or resistance that its proximity will…
Australia’s economic authorities upgraded their outlook on the Australian recovery in the mid-year update released on Thursday, with the economy expected to expand by 4.5% in 2021 versus the October forecast of 4.25%. The…