Post-BoC Canadian Dollar Rally Vulnerable To Softening CPI
– Canada Consumer Price Index (CPI) to Slow for Second Month in June. – Core Inflation to Hold Steady at Annualized 1.3% for Six Consecutive Months. – Retail Crowd Remain Stubbornly Net-Long USD/CAD Since June 7, When It Traded Near 1.3481. Trading the News: Canada Consumer Price Index (CPI) Another slowdown in Canada’s Consumer Price Index (CPI) may tame the […]
Rail Week Ending 15 July 2017: Economic Intuitive Slowing Continues
Week 28 of 2017 shows same week total rail traffic (from same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. The economically intuitive sectors slowing continues. Analyst Opinion of the Rail Data We review this data set to understand the economy. If coal and grain are removed from the analysis, rail over […]
EUR/USD: Draghi And Trump Sink The Dollar
Yesterday, trading on the euro/dollar pair closed up. By the end of the day, the euro had appreciated by 115 pips against the dollar, reaching 1.1630. The rate had dropped to 1.1479 before Mario Draghi’s press conference. The European Central Bank decided to maintain rates at their current levels. The base rate remains at zero, […]
E Why Is Inflation So Low, Virtually Everywhere
“The most important lesson from the 1930s, as well as from the modern-day Japanese experience, is that monetary policy provides no answer for a chronic deficiency of aggregate demand. Addressing it is a task primarily for fiscal authorities. The idea that central banks should consider making a new promise to raise their inflation targets is […]
Euro Surges To 2-Year High In “Bipolar” Draghi Reaction; Futures Flat
The euro’s surge to an almost two-year high put a cap on the global market rally in Friday’s quiet session, with most major exchanges consolidating after a second strong week of gains. The MSCI Asia-Pacific index declined for first time in ten days while the European Stoxx 600 index was fractionally in the green as […]
Oil At Important Resistance Area
Oil price got rejected yesterday once it reached the Daily Kumo (cloud) resistance at 47.30$. Oil price could be making a double top reversal here if we see price remaining below the Daily Kumo (cloud). A rejection at current levels will bring pressure to oil prices. A break below 46-45.70$ could signal a reversal confirmation […]
EUR/USD After The ECB: All The Way To 1.20? Four Opinions
Mario Draghi tried to be as dovish as possible, but markets didn’t buy it. The move up on EUR/USD was compounded by the new Trump troubles. What’s next? Here are four opinions: Here is their view, courtesy of eFXnews: EUR/USD: Post-ECB: Towards 1.20 Before A Meaningful Correction – SocGen Societe Generale Cross Asset Strategy Research highlights 2 […]
Gold Pushes Higher On Weakening Greenback
Gold prices rose $3.39 an ounce on Thursday, benefitting from a drop in the U.S. dollar index. The euro surged to its highest level in more than two years after European Central Bank President Mario Draghi said the central bank will discuss when to trim its massive bond purchases in the autumn. Weaker equity markets […]
Dollar Licks Wounds As News Stream Doesn’t Improve
ECB President Draghi did not argue forcefully enough at yesterday’s press conference to dampen the enthusiasm for the euro. The initial dip was quickly bought and the euro chased above last year’s high near $1.1615, and the gains have been extended to nearly $1.1680 today. The next target is the August 2015 near $1.1715 is near. […]
Weekend Reading: Charge Of The Light Brigade
As you I discussed last week, we added risk exposure to portfolios with the breakout to new highs that came in conjunction with a short-term “buy signal” as shown below. However, when we zoom out a bit, a different picture emerges. Note that in all 3-cases, there was a “Stage-1 Advance”followed by a correction which led to a “Stage-2 Advance.” The […]
