ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on December 3, 2013. Click here to read the entire piece.) {snip} Source: FreeStockCharts.com The Bank of Canada was consistent with the change of tone from late October’s downgrade of the Canadian economy. In particular, inflation retreated further away from target: {snip} … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November 4, 2013. Click here to read the entire piece.) Last week, Statistics Canada reported year-over-year GDP growth of 2.0% for August, 2013 which beat analyst expectations of 1.7%. This growth translated into a 0.3% month-over-month increase. July delivered 0.6% growth … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 28, 2013. Click here to read the entire piece.) Canadian monetary policy may have experienced an important change-up. With last week’s announcement on monetary policy, the Bank of Canada became a little more dovish. The sharp response in the Canadian … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 21, 2013. Click here to read the entire piece.) On April 17th, the Bank of Canada decided to leave interest rates unchanged. In its Monetary Policy Report Summary, the Bank of Canada extended out its forecast to mid-2015 as the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 21, 2012. Click here to read the entire piece.) {snip} Since at least 2010, Governor Mark Carney has consistently warned Canadians that interest rates are abnormally low and must inevitably go up. However, Carney has also made it clear that … Read more
Currency traders appeared very disappointed that the Bank of Canada left interest rates unchanged on Tuesday. The Canadian dollar (“loonie”) immediately bounced sharply from near three-year highs against the U.S. dollar, and the USD/CAD eventually popped over parity (1.0) for the first time in two weeks on Thursday. The accompanying statement suggested that the Bank … Read more
Mark Carney, the governor of Canada’s central bank (Bank of Canada), must be one of the most relaxed central bankers in the Western world. In an interview posted on Paul Kedrosky’s website (minutes 9 to 35), Carney admits that his job is easy compared to the task still facing many of his contemporaries. For example, … Read more
On Tuesday morning the Bank of Canada decided to leave its overnight interest rate unchanged at 1.0% and confirmed the caution expressed by Governor Mark Carney on CNBC almost a month ago. The concluding paragraph in the statement on monetary policy summarizes the Bank’s concern about current economic conditions: “At this time of transition in … Read more
In “The Dollar Is Headed Lower“, Randall W. Forsyth wrote in Barron’s that “The dollar’s trend now is unequivocally lower. And that’s apparent whether you look at fundamental factors or the technical picture on the charts.” He does a good job of summarizing the current condition of de facto competitive devaluation that is increasing the … Read more
No new news in the Bank of Canada’s decision to maintain its overnight rate target at 0.25% and to start increasing this rate at the end of next quarter. The Bank of Canada continues to lament the stubborn strength of its currency despite these rock-bottom rates: “…the persistent strength of the Canadian dollar and the … Read more