ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
On September 19th, the Reserve Bank of Australia (RBA) released the minutes from its last meeting on monetary policy (September 5, 2017). Iron ore was perhaps the biggest headline coming out of those minutes. Surprisingly, the RBA called a top in the price of iron ore (emphasis mine): “Iron ore prices had been supported at … Read more
There is nothing like a significantly stronger currency to get central banks to take pause. I cannot recall in recent memory a time where a little known (or under-appreciated?) Deputy Director of the Bank of Canada made a notable impact on the Canadian dollar. Such an event occurred on Monday, September 18th. Deputy Director Timothy … Read more
“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced. It could happen sooner than markets currently expect… …The need for internal balance – to use up wasteful spare capacity while achieving the inflation target – will likely require gradual and limited interest rate increases … Read more
When I described U.S. Concrete (USCR) as a strong play on the U.S. economy, I noted I would wait for a dip in the stock before picking a spot to buy. That opportunity came a lot faster than I expected as USCR dipped down on rising volume to the top of its previous trading range. … Read more
A little over a week ago, I explained why I put the Mexican peso and the Canadian dollar (FXC) on shorter leashes. Canada’s extremely strong second quarter GDP report at the end of August just loosened that leash a little. Statistics Canada reported 2Q real GDP growth of 1.1%. The annualized growth rate of 4.5% … Read more