Category Archive: Finance
Canada ETFs Rise After Unexpected Rate Hike
The Bank of Canada (BoC) increased interest rates for the first time in seven years in its July 2017 meeting. Now, for the second consecutive time, the BoC has increased its benchmark overnight interest rate. Most economists expected Governor Stephen Poloz to hold on to the rate hike in the most recent BoC meeting (read: Canada […]
Eurozone Growth Prediction Increased
Projections for growth in the Eurozone suggest that it will hit the level seen prior to the Global Financial Crisis for the first time since the storm clouds gathered in 2007. Current ECB projections expect growth in the 19 nations which use the single currency to come in at 2.2% for 2017; this is a […]
Tech Stocks Lead US Sectors For 1-Year Momentum
Technology shares have overtaken financial stocks as the top sector performer for the trailing one-year period, based on a set of ETFs. The formerly high-flying financials have been clobbered recently, in part due to worries that falling bond yields and the blowback due to hurricanes striking the US will take a bite out of earnings […]
Further Thoughts On Gibson’s Paradox
“The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.” – John Maynard Keynes “The Gibson paradox remains an empirical phenomenon without a theoretical explanation” -Friedman and Schwartz “No problem in economics has been more hotly debated.” – Irving Fisher Introduction Two years ago, I found a […]
US Dollar Tracks Yields Lower
The US dollar has been unable to find any traction as US yields continue to move lower. The US 10-year year is slipping below 2.03% in European turnover, the lowest level in ten months. The risk, as we have noted, is that without prospects of stronger growth and inflation impulses, the yield returns to where was […]
Hurricane Harvey Ripple Effects: Assessing The Impact On Housing And GDP
Black Knight reports Hurricane Harvey could Lead to 300,000 new mortgage delinquencies. How does this compare to Katrina? And what about GDP? Via Email from Black Knight Hi Mish, As we watch Hurricane Irma barreling through the Caribbean, on her way to Florida, Black Knight is releasing an updated and expanded analysis around the potential […]
EUR/USD: Expect A Rebound From The 135th Degree And U3 Line
Previous: Yesterday, Thursday, trading on the euro closed up. Mario Draghi’s press conference was the key event of the day, and volatility on the market surged as he was speaking. Everyone heard what they wanted to hear, but the bulls overpowered the bears. Draghi didn’t say anything new. He remained silent on the strength of […]
Dollar Bloodbath Continues Across Asia, Gold Tops Election-Night Spike Highs
Having plunged by the most in 6 months during the US day session, the dollar is continuing to get pounded across AsiaPac with Hong Kong Dollar and Yuan surging. Gold is extending gains, breaking above the spike highs from election night… The Dollar Index is in free fall…This is the 7th straight down day for the USD Index… […]
Yen, Commodity Currencies Capitalize As US Dollar Collapses
The US Dollar sank in Asia Pacific trade, building on losses sustained in the prior session against a backdrop of deteriorating Fed interest rate hike prospects. The priced-in probability of a third increase in 2017 as reflected in Fed Funds futures slipped to 22.6 percent, the lowest yet this year. That sent the greenback to the weakest […]
Gold Rises On Technical Buying, Weak U.S. Dollar
Gold prices ended Thursday’s session up $14.62 an ounce, helped by a slumping U.S. dollar. The greenback came under renewed pressure as the euro rallied after the European Central Bank raised its growth forecasts and indicated it was preparing to scale back its stimulus program. XAU/USD reached the $1353 area in Asia session today after […]
