Category Archive: Finance
Above-Forecast Canada CPI To Derail USD/CAD Rebound
Another 0.4% rise in Canada Retail Sales paired with marked pickup in the Consumer Price Index (CPI) may derail the near-term rebound in USD/CAD as it encourages the Bank of Canada (BoC) to further normalize monetary policy over the coming months. After delivering two consecutive rate-hikes, recent comments from Governor Stephen Poloz and Co. suggests the central bank will […]
Great Expectations – Stock Market Breaks 2017 Pattern In Strong Pre-Earnings Rally
A persistent theme for 2017 has been stocks surging to record highs during each quarterly earnings cycle. The first three-quarters of 2017 earnings have seen a series of 6-week explosions to the upside: February, April-May, and July. In fact, removing these three 6-week surges would leave the stock market completely flat for the year through August. The […]
Hedge Fund Strategies In The Aftermath Of Global Crisis
Mariya Domina Repiquet, a candidate for the Master of Science in international finance at the University of Strasbourg, has written a paper analyzing hedge fund investment styles and strategies just after the global financial crisis, that is, in the period 2009-10. The work combines a trip down memory lane (important memories, an important lane) and a […]
U.S. Dollar Rises From The Ashes
After a disastrous year, the U.S. dollar has finally shown signs of real progress. Earlier this month, the U.S. dollar index (DXY) jumped to its highest level since August on political support and weakness from other major currencies. The dollar index, a measure of the greenback against a basket of six peers, reached a settlement […]
Two Different Approaches To Economics And One Approach To Pseudo-Economics
by Philip Pilkington In the comments to my piece on Janet Yellen the hypocrisy of my position was pointed out, as it so often is, by a certain reader of this blog. What was my hypocrisy on this particular occasion? It was the fact that I complained about Yellen’s obsession with ‘closing’ models but, in other circumstances, […]
Kiwi Dollar Flounders After Election Surprise
Among Asian currencies, the New Zealand Dollar, commonly called the Kiwi Dollar, was among the biggest movers today. In the past day, the Kiwi has lost nearly 2% of its value relative to the US Dollar, after the country’s Labour party surprisingly pulled out a win in the country’s general election. Analysts say that markets […]
USD/JPY Hits High Resistance On US Tax Talk, Upcoming Elections
USD/JPY is currently trading at 113.30, after already reaching a peak of 113.46. This is the line that it reached earlier in the month and also in July. The drivers come from both sides of the currency pair. Can it reach even higher ground? In the US, the Senate took the first step in approving tax […]
Weekly Commodities Wrap: Schroders Forecasts Sub $50 Iron
Gold: December US Rate Hike Expectations Weigh On Gold The yellow metal came under pressure this week as fresh comments from Fed members encouraged expectations of a December rate hike. Philadelphia Fed President Harker said that the Fed should “prudently move up to the neutral real rate as quickly as possible” noting that “very little […]
Stock Exchange: Are Momentum Trades Better Than Dip Buying?
This Week: Are Momentum Trades Better Than Dip Buying? The answer to that question depends, of course, on a variety of factors including your trading personality, your timeframe, how you manage risk, and market conditions, to name a few. Our models (as shown in the following table) have been developed to take advantage of opportunities […]
GBP/USD Breaks Contracting Triangle Pattern In Bearish Channel
GBP/USD 4 hour The GBP/USD is building lower lows and lower highs which makes a bearish ABC (grey) a bit less likely and a wave 123 (green) more probable, although a bearish breakout below support (blue) is still needed to confirm. The wave 4 (orange) correction is less likely if price breaks above the resistance […]
