FOREX: Jobs Report, Trade Optimism and Technicals Boosting Further CAD Gains
Dec-05 17:33
- As noted above, the phase of USD demand through the London close has tilted the USD index into positive territory on the session, although the range for the DXY has remained relatively contained as we approach the weekend close. While this greenback pop did weigh on the likes of EUR, GBP and the Swiss Franc, the Canadian dollar remains pinned to its session highs.
- The impressive 0.78% selloff for USDCAD follows the impressive employment report for November, where the unemployment rate dipped to the 6.5%, the lowest level since July 2024 after peaking at 7.1% a few months ago.
- Technical breaks have exacerbated the USDCAD declines. Both the breach of the bull channel around 1.3940, and the clean break of key 1.3888 support significantly bolster the renewed bearish theme.
- Furthermore, background comments from President Trump might be providing some tentative optimism surrounding an improvement/restart for trade negotiations with the US. Trump said he is getting along well with Canada and Mexico, and showed a clear intention to discuss trade at their meetings after the FIFA World Cup draw.
- 1.3812 and 1.3727 remain the next chart points in focus. As a reminder, we have both the BOC and FOMC rate decisions next week, likely to keep the spotlight on USDCAD in coming sessions.
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US: Democrats Harden Stance On Deal To Reopen Govt In Light Of Election Results
Nov-05 17:27
Sarah Ferris at CNN reports on X, “Senate Dems involved in talks to end shutdown are using election to try to spur GOP to back a framework to temporarily extend ACA with some reforms to reopen govt, per 2 sources. “With that it ends fast; without we stare at each other another week.”
- The report appears to confirm that the ‘blue wave’ overperformance at yesterday’s elections has bolstered Democrats' position that a hardline stance on reopening the government is endorsed by voters.
- Senate Minority Leader Chuck Schumer (D-NY) said at a press conference a few moments ago: “Last night [election result] was clear, unmistakable, as a repudiation of Trump and a vindication of what Democrats have been fighting for over the past several months…”
- Schumer said voters, “know that Democrats are fighting for them and Republicans are doing nothing to address the healthcare crisis. And last night Republicans felt the political repercussions.”
- Schumer maintained that he will not endorse reopening the government until Republicans, “sit down with us and address the healthcare crisis.” Adds: “That’s the way to end the shutdown. Plain and simple.”
- When asked if he supports Senator Jeanne Shaheen’s (D-NH) initiative to reopen the government with a bipartisan deal, Schumer says: “I’ve always encouraged Republicans and Democrats to sit down and talk with each other but all Democrats agree that Trump should sit down and talk as a way to solve this.”
PIPELINE: Corporate Bond Update: Santos, CBRE, Mattel Launched
Nov-05 17:13
- Date $MM Issuer (Priced *, Launch #)
- 11/05 $1B #Santos Finance 10Y +168
- 11/05 $750M #CBRE Services 7Y +98
- 11/05 $600M #Mattel 5Y +130
- 11/05 $Benchmark Equinix 5Y +85
- 11/05 $Benchmark Polaris +5Y +200a
- 11/05 $Benchmark KEPCO 3Y SOFR+62, 5Y +47
- 11/05 $Benchmark Intercontinental Exchange 3Y +45, +5Y +60
- 11/05 $Benchmark Apollo Global Mgt 5Y +110a, 10Y +130a
- 11/05 $Benchmark Transcontinental Gas Pipeline 10Y +120a, 30Y +130a
FED: US TSY TO SELL $58.000 BLN 3Y NOTES NOV 10, SETTLE NOV 17
Nov-05 17:05
- US TSY TO SELL $58.000 BLN 3Y NOTES NOV 10, SETTLE NOV 17
