News & Analytic Centre

Markets experienced some turbulence last week as freefalling bond yields concerned investors and fueled an unwind of the reflation trade. Will volatility continue in the week ahead?

Fresh record highs for the S&P 500 as falling bond yields prompt growth stocks to outperform. FTSE 100 consolidates.

Gold prices may have some short-term upside potential, supported by depressed real yields in the U.S., concerns about the Covid-19 delta variant and China’s slowing economy.

The US Dollar (via the DXY Index) has dropped back as the calendar moved into mid-July on the back of declining Fed rate hike expectations and collapsing US Treasury yields.

Canadian Dollar price action looks ripe for volatility this coming week with USD/CAD and CAD/JPY hinging on event risk posed by the BoC rate decision, BoJ update, US inflation data, and OPEC+ talks.

The Australian Dollar faces a tough short-term outlook, with the risk-sensitive currency facing a questionable economic recovery as the Delta variant continues to rip through the world.