ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
{updated to include commentary on The Guggenheim Canadian Energy Income ETF (ENY)} On Monday, June 12, 2017, Senior Deputy Governor of the Bank of Canada Carolyn A. Wilkins delivered a speech at the Asper School of Business in Winnipeg, Manitoba that was firmly bullish on the Canadian economy. The market’s reaction was swift and equally … Read more
The latest CFTC data on the Commitments of Traders (CoT) shows some important moves in the positioning of speculators. Australian dollar (FXA) While the price of iron ore plunged, bullishness on the Australian dollar (FXA) remained surprisingly strong. I am almost equally surprised to see this bullishness now in full scale retreat as iron ore … Read more
I may have flipped outright bearish on the U.S. dollar index (DXY0) just in time. My change in sentiment started with my increasing bullishness on the euro (FXE). With the euro constituting about 51% of the U.S. dollar index, I realized that it would be hard to remain bullish on the dollar overall while adopting … Read more
Canada and the U.S. reported jobs numbers for April at the same time last Friday (8:30am Eastern). From the surface, it looks like traders thought MUCH more highly of the Canadian report. The U.S. dollar plunged against the Canadian dollar (FXC) and erased the entire week’s gain for USD/CAD. Source: FreeStockCharts.com Interestingly, traders took a … Read more