Author: Robert Jessi

The week in one sentence: speculative positioning shifted more constructively in the week to August 25. CAD short covering led the move, followed by a broad reduction in EUR shorts and renewed Gold buying. GBP and VIX positioning also improved, while JPY positioning deteriorated and WTI flows diverged from weaker prices.CAD: Short covering leadsThe Canadian Dollar’s (CAD) non-commercial net shorts shrank by over 36.5K contracts to about 121.5K contracts, marking the biggest weekly improvement since mid-December. In contrast, USD/CAD traded with respectable losses, with modest CAD rising as positioning improved. Furthermore, the net positioning increased to the 21st percentile.EUR: Shorts…

The Canadian dollar weakened on Friday and was on track for its sharpest weekly decline in more than two months, as a stronger U.S. dollar overshadowed surprisingly robust Canadian economic growth. The loonie traded near C$1.3900 against the U.S. dollar, falling about 0.3% to roughly 71.94 U.S. cents. USD/CAD earlier reached C$1.3908, marking the Canadian currency’s weakest level in nine days as traders increased expectations for a Federal Reserve interest rate hike in September. Pressure on the Canadian dollar intensified after Fed Chair Kevin Warsh delivered a hawkish message on inflation at the Jackson Hole economic symposium. Warsh indicated the…

Canada’s 3.3% Q2 rebound supports the Loonie, but Scotiabank sees USD/CAD wrestling with 1.39 as the broader Dollar regains momentum. The US Dollar to Canadian Dollar (USD/CAD) exchange rate ended Friday around 1.3903, extending its late-August rebound despite another strong batch of Canadian economic data. USD/CAD has still fallen around 0.8% during August and almost 1.5% over the past month, but the pair has recovered sharply from the 1.3733 low reached on 22 August. Scotiabank analysts had expected the Canadian economy to confirm a solid rebound after the weakness around the turn of the year. “The Canadian economy appears to…

Prediction markets currently let customers make wagers of $1 or less on the outcome of real-world events, like what will happen at the Bank of Canada’s next interest rate announcement or how many major Atlantic hurricanes there will be this year. Wealthsimple and Interactive Brokers are the only Canadian platforms approved to offer prediction market trading, which is limited in Canada to economic, financial or climate matters. Who should regulate prediction markets? With the U.S. offering prediction market trading on a much wider array of topics, including sports and entertainment, many north of the border have wondered how the same…

Korean day traders flee leveraged chip ETFs as regulatory curbs bite

Elevenlabs AudioNative PlayerIn what probably could best be described as an exercise in damage control, Federal Reserve chair Kevin Warsh has sought to dampen down fears in financial circles that he is not prepared to react to persistent inflation by raising interest rates.Warsh had come under fire following the Fed meeting in July, after his remarks following a decision to keep rates on hold were regarded as not sufficiently clear on what his reaction to continuing inflation would be.Fed Chair Kevin Warsh, center, talks to Bank of England Governor Andrew Bailey, right, and Bank of Canada Governor Tiff Macklem at the…

Commerzbank’s Charlie Lay reports the Bank of Korea has delivered back-to-back 25bp hikes to 3.0%, front-loading tightening as growth and core inflation forecasts rise. The bank signals one more hike over six months but may pause to assess effects. Despite strong fundamentals and a huge current-account surplus, further KRW gains versus USD are expected to be more gradual after a 12% rally.Front-loaded tightening and slower KRW gains”Looking ahead, BoK maintained a tightening bias, but the pace of further hikes is likely to slow after the cumulative 50bp increase since July.””BoK provided some forward guidance, by way of its new six-month…

DBS Group strategists Taimur Baig and Nathan Chow forecast Vietnam’s goods exports to maintain strong double-digit growth at 27% year-on-year in August 2026, led by electronics and supported by external demand. Retail sales and tourism-related spending are seen as resilient, while headline inflation is expected to hold at 4.4%, below May’s peak but still elevated due to firm food and housing costs.Electronics exports drive strong momentum”We expect Vietnam’s goods exports to extend their run of robust double-digit growth, expanding by 27.0% yoy in August 2026, up from 25.0% yoy in July, driven primarily by strong electronics shipments amid supportive external…

Investing.com — The Canadian dollar edged lower against the U.S. dollar on Friday, with the loonie facing pressure from renewed trade tensions with Washington and a firmer greenback ahead of a closely watched speech by Federal Reserve Chair Kevin Warsh. USD/CAD was around C$1.3853, down about 0.01% on the day, leaving the Canadian dollar at roughly 72.19 U.S. cents. The pair was little changed from Thursday’s close after the loonie gained 0.2% in the previous session. The currency remains vulnerable after Canada-U.S. trade talks broke down last week, reviving concerns about the outlook for Canadian exports and economic growth. The…

The Canadian dollar weakened on Friday and was on track for its sharpest weekly decline in more than two months, as a stronger U.S. dollar overshadowed surprisingly robust Canadian economic growth. The loonie traded near C$1.3900 against the U.S. dollar, falling about 0.3% to roughly 71.94 U.S. cents. USD/CAD earlier reached C$1.3908, marking the Canadian currency’s weakest level in nine days as traders increased expectations for a Federal Reserve interest rate hike in September. Pressure on the Canadian dollar intensified after Fed Chair Kevin Warsh delivered a hawkish message on inflation at the Jackson Hole economic symposium. Warsh indicated the…