After a very spirited first couple of hours in New York, we’ve settled into a sort of quiet consolidation. Risk aversion has clearly eased in the wake of upbeat Chinese and AUD data overnight and the surprisingly firm ISM figures is icing on the cake.

Traders are reluctant to go too far out on the risk limb with jobless claims tomorrow and the employment report on Friday still to contend with.

Assuming the employment report shows any signs of strength, we will see continued repricing of risk, with stocks rising and bonds falling. Commodities may be more of a mixed bag as stronger global growth may undermine the “hard”asset part of the commodity equation: central banks will not have to be as aggressive trying novel forms of easing if the economy looks like it is beginning to right itself.

USD/JPY continues to stall in the mid-84.60s. EUR/USD is finding buyers on dips below 1.2800 and commodity currencies remain all the rage as AUD approaches .091 and USD/CAD consolidates below 1.0500.

Traders report real money of EUR/CAD are in the market this morning.

Makes sense from a macro perspective. If you want to assume risk, sell the primary dollar-alternative and buy the beneficiary of global growth.

Traders report an Asian central bank buying USD/CAD on the dips to the 1.0330s but also selling rallies should they develop toward 1.07.

Should keep that choppy pair bottled up near-term.

USD/CAD earlier overcame resistance at 1.0665 but follow-through was minimal.

Traders report an Asian central bank has interest to sell USD/CAD at 1.0700 (1.0665 is very important resistance). Strong bids are rumored on dips mow to the 1.0570 area. We trade now at 1.0635 ahead of Canadian GDP.

traders report that asset managers are steady buyers of USD/CAD today, for what its worth.

USD/CAD sold off to the 1.0470 level early in the session only to rebound after a jump in the Canadian current account deficit as well as the investor demand for dollars. CAD has been a pretty good risk barometer of late but today it is bucking the trend. USD/CAD trades now at 1.0550.

Canada’s current account deficit rose to C$11 bln in Q2 from -C$8.5 bln in Q1.

It was not that long ago that Canada was  the only country in the G7 with a fiscal and current account surplus. It now has neither…

The April-June deficit fell to -C$7.23 bln from -C$12.5 bln a year ago. The June deficit was C$ 2.8 bln verus C$ 5 bln a year ago.

Traders tend to run toward commodities when the Fed leans toward quantitative ease as they assume dollar weakness and inflation will be the inevitable result down the road. Since Bernanke did not bang the drum for further ease, though he continues to hold the option in reserve, they are unwinding positions taken in anticipation of an immediate signal that the Fed would crank up the printing presses.

Crude has fallen heavily and the CRB is down half a percent since the speech hit the wires.

EUR/JPY seems to be playing the risk on game, falling back as asset markets weaken.

The break through the 1.0550 level today has triggered a double-top pattern on the short-term charts in USD/CAD. The downside objective is 1.0440.

You got that right, brother.

Risk aversion looks to be picking up with JPY, CHF stregthening but the Loonie is not easing appreciably this morning as it normally would given how it is unusually leveraged to the global growth outlook given its commodity-focused economy.

USD/CAD trades in the lower reaches of its days range at 1.0561 after stalling several times in the 1.0665 area in recent sessions.

• 1
• 2
• 3
• 4
• 5
• ...
• 46
• >