Given its natural resource-based economy, Canada is a boom and bust kind of place. This year, the country has enjoyed a significant boom. Thanks to a government stimulus program, rising corporate capital expenditures and consumer spending, Canada’s GDP growth has been nothing short of spectacular in 2017. According to Statistics Canada, the latest reading for year-over-year…
EM FX ended the week firm, and capped off a good week overall. Best performers last week were ZAR and KRW, while the worst were TRY and IDR. Until we get higher US rates, the dollar may remain under modest pressure. This would help EM maintain some traction, though we remain cautious. Chile will…
The Australian dollar dips lower amid many economic releases and a “risk-off” atmosphere. The upcoming week features the meeting minutes from the RBA and other releases. Here are the highlights of the week and an updated technical analysis for AUD/USD. The Australian dollar fell alongside other commodity currencies but never went too far. An upbeat NAB figure helped it recover. The…
MLP investors must wish they’d never heard of the Shale Revolution. The consequent growth in volumes of crude oil and natural gas seemed a fairly simple thesis for owners of volume-driven infrastructure assets. Increased demand for pipeline and storage capacity, for gathering and processing networks, ought to be good for the sector. But so far,…
Fundamental Australian Dollar Forecast: Neutral The Australian Dollar sagged last week as weak wage data surprised the market Employment growth remains strong but pay rates are lagging severely This week will probably see the USD side of AUD/USD driving Last week’s economic snapshots provided market watchers with a little macrocosm of all that plagues Australian Dollar bulls. The country’s official October employment data came…
The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the EUR(3X) with the JPY(3X) followed by the GBP(2X). The weaker currencies are the NZD(5X) followed by the AUD(3X) and the CAD(2X). By diversifying a nice combination can be traded in the…
As can be seen on the Daily comparison chart and percentage-gained graph below, the Russell 2000 Index (RUT) and the High Yield Corporate Bonds ETF (HYG) generally trade in lockstep, although the RUT is accompanied by more volatility and larger swings. At the moment, the RSI and MACD indicators are hinting of lower prices ahead for HYG and volumes have spiked over the…
Cycles and structure are fundamental to price progression in the stock market. With the 6/7-year cycle making its low in January 2016, the SPX is still in a long-term uptrend. In addition, the 9-yr cycle bottomed in the fall of 2011 and its half-span, the 4.5-yr cycle, also bottomed in January 2016. Knowing this, we…
One way to predict the future is to accurately compute the direction of future inflation. This is because the direction of inflation is a big driver of financial asset prices. Following the exhaustion of the ‘Trump trade’ in the first quarter of this year, headline inflation has been falling in rate-of-change terms. During this time,…
The US economy continued to churn out strong economic fundamentals but not enough to sustain dollar attractiveness amid rising tax concern. Retail sales rose 0.2 percent in October, indicating consumer spending remains healthy even with less desirable wage growth. In the U.K, the economy has started showing signs of weakness following Prime Minister Theresa May failure to reach an agreement…
