Monthly Archives: January 2019

Thursday January 31st, 2019

Look for the USD Index to strengthen a bit today after yesterday’s drop appears a bit overdone. Yesterday the Fed announced it’s planning to keep its interest rate policy unchanged for the foreseeable future. The policy was reinforced by an unusual second announcement that monetary policy will a...
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Tuesday January 29th, 2019

The USD Index is range bound this morning awaiting new economic numbers, an announcement on China/US trade talks including hopefully a resolution with Huawei, and tomorrow’s announcement by the Fed. Expectations are for the Fed to keep rates unchanged, but as for trade talks any outcome is possibl...
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Monday January 28, 2019

The USD Index fell on Friday due to lower rate concerns. The market is looking forward to this Wednesday at 2pm when the Fed will make a formal rate decision announcement. This is Powell’s first opportunity to affirm his earlier comments towards easing, or at least no further rate increases. The d...
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Friday January 25th, 2019

The US Dollar Index rallied sharply yesterday when the EUR fell to new lows on comments by European Central Bank President Draghi that interest rates in Europe might be lowered. Plus, US Initial Jobless Claims shocked the market by dropping to levels not seen since 1969, despite 25,000 government em...
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Thursday January 24, 2019

USD: The US Dollar Index rallied sharply overnight on weaker EUR due to interest rate concerns. Yesterday’s Redbook Index was a higher than expected 7% indicating surprising consumer spending strength. However, the overnight rally is a bit overdone, so look for a pullback by the end of the day. CA...
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Wednesday January 23rd, 2019

USD: The US Dollar Index is toppy this morning. Over the last two weeks USD has rallied sharply on a more expansive Fed policy and EUR weakness over Brexit. It appears overdone, so look for a pull back over the next few days. CAD: CAD fell sharply yesterday on continued issues with China. The drop [...
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Tuesday January 22nd, 2019

CAD is weaker this morning, falling to 0.75 cents, on worries over US-China trade talks. It should find support near this level today, but expect further weakness going forward. Commodities and equities are down globally as China reports the slowest growth in 30 years at 6.6%. This is a strong numbe...
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Monday January 21st, 2019

CAD is weaker this morning but still stuck in a range. Ongoing potential trade issues with China might be the reason CAD hasn’t rallied further given recent strength in oil. Overall commodity prices are historically undervalued relative to the SP500, but commodities seem to be finding some support...
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Friday January 18th, 2019

CAD dropped sharply yesterday to almost 0.75 cents in the morning then rallied equally strongly in the afternoon. In keeping with a US Fed theme, business leaders are expecting a reassessment in Bank of Canada policy of rate hikes. Oil prices were also weak in the morning and surprisingly strong in ...
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Thursday January 17th, 2019

The UK government survived the no-confidence vote yesterday putting further strength to Sterling. The economic numbers for the US continue to show weakness and so the USD should trend lower from here. CAD is also weaker this morning on lower oil prices and that weaker trend is expected to continue o...
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