ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I greatly under-estimated the confidence of the Bank of Canada (BoC) when I mapped out the possibilities for a currency market that highly anticipated a rate hike from the Bank. In its latest statement on monetary policy, the BoC increased its target for the overnight rate by 25 basis points (bps) to 0.75%. The Bank … Read more
Going into last week’s report on Canadian employment, currency speculators retreated further from what was a record net short position against the Canadian dollar (FXC) less than two months prior. Source: Oanda’s CFTC’s Commitments of Traders This retreat is occurring in conjunction with a consistent strengthening in the Canadian dollar. For example, USD/CAD peaked in … Read more
AT40 = 48.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.4% of stocks are trading above their respective 200DMAs VIX = 12.5 (volatility index) Short-term Trading Call: neutral Commentary Diabolically, the stock market has put my head on the proverbial swivel. I earlier noted how the NASDAQ in particular … Read more
It was a holiday shortened trading day in the U.S., but it was enough time to deliver a bit of relief for the U.S. dollar index (DXY0). The most significant move for the U.S. dollar was against the ever-weakening Japanese yen (FXY). USD/JPY broke out and stayed above resistance at its uptrending 200-day moving average … Read more
I have been bearish on the Australian dollar (FXA) for quite some time now. My main driver was a reversal in fortunes for soaring iron ore prices that in turn weighed down the currency. Iron ore prices rebounded so much since hitting one-year lows last month that the raw ingredient for steel is now technically … Read more