- BOC's Macklem: We are concerned that progress in bringing down inflation has slowed
- Macklem Q&A: Maybe we don't need to do more, maybe we do' on interest rates
- UAW calls GM proposal 'insulting' again treatens Sept 15 strike
- Fed's Williams: Labor market balances are evening out
- US weekly initial jobless claims 216K vs 234K expected
- Senate votes to confirm Adriana Kugler as Federal Reserve Governor
- US weekly EIA crude oil inventories -6307K vs -2064K expected
- US weekly natural gas inventories +33 bcf vs +43 bcf expected
- Canada August Ivey PMI 53.5 vs 48.6 prior
Markets:
- Gold up $3 to $1919
- US 10-year yields down 3.8 bps to 4.25%
- WTI crude oil down 72-cents to $86.82
- S&P 500 down 0.3%
- JPY leads, CAD lags
This week has featured a strong push-back on the idea of a slowing US economy. Yesterday's ISM services number was strong and now today initial jobless claims. The dollar initially rallied but yields later came down as a strong bid in bunds appeared that led to a broader bid in Treasuries that pulled down USD/JPY, giving Japanese officials a breather.
Elsewhere the dollar was robust as global yields fell as some risk aversion crept in. EUR/USD fell 32 pips though it found bids on two trips to 1.0687 as the dip on the figure was brief. Cable followed a similar track as a dip to 1.2446 was short lived.
The Canadian dollar was an underperformer despite Macklem's best efforts. He delivered a hawkish speech but the market isn't believing in the case for more hikes with economic data slipping. In addition, oil finally came off the boil, breaking a streak of nine days of gain
