The Disconnect Grows

The market reaction to the weekend’s tariff threats — this time targeting a 50% tariff on Mexican and European exports to the US — was mostly hopeful: that they won’t materialize. That’s how markets traded the news — on the assumption that negotiations will water things down to a 15%-ish rate, at least for the … Read more

US Yield Curve Showed Some Gentle Bear Steepening

Markets The US 30-yr yield was a whisker away from touching the psychological 5% mark yesterday as Friday’s tariff-driven sell-off in US Treasuries slowed. Still the US yield curve showed some gentle bear steepening with daily yield changes ranging between +1.4 bps (2-yr) and +2.8 bps (30-yr). The jury is still out with June US … Read more

Gold Holds Steady But Could Rise on Tariff Developments

The price of gold remains stable at $3,354 per troy ounce this Tuesday, recovering some of the previous day’s losses. Market attention remains firmly fixed on US trade policy developments. President Donald Trump has formally notified leaders from 25 countries of new tariffs, including a 30% levy on imports from the EU and Mexico, set … Read more

GBP/USD Rate Falls to Key Support Level

As of today, the GBP/USD chart indicates that the British pound has declined by more than 2% against the US dollar since the beginning of July. Notably, the pace of the decline accelerated on Friday and continued into Monday. According to Reuters, the pound is under pressure due to market concerns over a potential economic … Read more

Bitcoin Corrects, But Market Not Worried

Market Overview The crypto market cap retreated 3.5% to $3.67 over 24h after Bitcoin’s sharp dive in the middle of the European session on Monday. Notably, stock indices continued to move upwards, confirming no radical change in risk appetite. Bitcoin was one of the main victims of sharp profit-taking, falling 4% in 24 hours to … Read more

Canadian Dollar on Hold Ahead of Canada, US CPIs

The Canadian dollar continues to drift but that could change with the release of Canadian and US inflation later today. In the North American session, USD/CAD is trading at 1.3687, down 0.13% on the day. Canadian, US CPI expected to have accelerated in June It promises to be an interesting day as both Canada and … Read more