Daily Market Commentary

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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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Wednesday January 16th, 2019

Brexit was voted down in the UK parliament yesterday by a wide margin. The Labour Party has brought a no-confidence vote to the House today calling for a new election, which is expected to be voted down. Interestingly Sterling dropped three cents prior to the vote then rebounded three cents after wh...
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Tuesday January 15th, 2019

Today US Core Producer Price Index, an important indicator of overall inflation, will be announced for December 2018. The Year-over Year rate is expected to be 2.5%. While the PPI has been steadily increasing for 3 years peaking at 3.5% a few months ago, it has been declining steadily since then. Th...
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