Canadian employment report eyed as loonie swings from high to low

Raffi Boyadjian Analysis

Canadian employment numbers for July due on Friday at 12:30 GMT could add to the recent run of strong data for the North American economy. Jobs growth is expected to slow but remain solid in July, as the country enjoys a bounce in economic momentum amid strained relations with the United States and Saudi Arabia, and ongoing efforts to renegotiate …


Japan GDP to show smaller contraction but could still be headed for recession

Raffi Boyadjian Analysis

Japan will publish revised GDP numbers on Friday (Thursday, 23:50 GMT) for the first quarter. Growth is expected to be revised higher on the back of stronger than initially estimated capital expenditure during the period. However, the revision is unlikely to allay fears of a recession unless growth is revised to positive, as household spending remains weak. The preliminary estimate …


US trade data in focus ahead of G7 summit

Raffi Boyadjian Analysis

The trade balance in goods and services will be published by the United States Census Bureau on Wednesday at 12:30 GMT. After a sharp narrowing in the trade deficit in March, the shortfall is expected to hold near similar levels in April. The data will likely be watched closely ahead of the G7 summit on June 8-9, as the US …


AUDJPY upswing falters again; stuck within recent range

Raffi Boyadjian Analysis

AUDJPY hit a two-week peak of 84.17 earlier today before pulling lower. Today’s high marked a sharp reversal from the two-month low of 81.01 touched on May 30. The near-term bias remains bullish but momentum indicators suggest the rebound may be running out of steam. The RSI is pointing downwards, though it remains in positive territory, while the %K line …


Week Ahead: Dollar rally turns to US jobs report for refuelling

Raffi Boyadjian Analysis

US economic data will return to the forefront next week, with the nonfarm payrolls report being the main focal point. The Bank of Canada will be the only major central bank holding a policy meeting, while Canadian GDP figures will keep the loonie under the limelight. The other highlights will come from the Eurozone flash CPI release, Japanese and Australian …


Emerging markets rattled by strong dollar; Will the Fed take note?

Raffi Boyadjian Analysis

A stronger US currency may have brought a smile to the face of policymakers in Japan and the Eurozone, as their export-reliant economies stand to benefit from a weaker exchange rate, but the dollar rally of the past month has generated unwelcome volatility for emerging market (EM) currencies, raising concerns of a new EM crisis. Emerging market currencies have been …


Week Ahead – Euro looks to flash PMIs for bounce

Raffi Boyadjian Analysis

As the US dollar continues to power ahead, the beleaguered euro and pound will be seeking for some reprieve from key economic indicators out of the Eurozone and the United Kingdom next week. With the US calendar being lighter in the coming seven days, the greenback may lose some steam, though the FOMC minutes could still keep the dollar bulls …


EURCHF turns bearish in short term after dramatic slump

Raffi Boyadjian Analysis

EURCHF is on course for a fourth straight day of losses, which have taken the pair from above the 1.19 level to a one-month low of 1.1770 today. The sharp sell-off, especially in the past two sessions, has shifted the near-term bias from positive to negative. The momentum indicators are supportive of the bearish picture, with the RSI falling into …