ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
For months, I have tried to stay bullish on the Canadian dollar (FXC), particularly against the U.S. dollar (USD/CAD). Bit by bit, the Bank of Canada has undermined my bullish narratives. The tune from the Bank of Canada (BoC) notably changed in the November report on monetary policy, and last month’s report on monetary policy … Read more
The U.S. Senate approved the U.S.-Mexico-Canada Agreement (USMCA) trade agreement on Thursday, January 16th. That timing may mark a major milestone and turning point for the Mexican peso against the U.S. dollar (USD/MXN). The following day, USD/MXN sliced through the low of 2019 and hit a 17-month low. I have been bullish on the Mexican … Read more
It was just two weeks ago when I pointed out an important technical change in the U.S. dollar against the South African rand (USD/ZAR). The USD/ZAR currency pair proceeded to decline nearly straight down until it reached toward the July lows. Based on the strong rebound underway, I am assuming the rally in the rand … Read more
With the U.S. dollar index (DXY) last tested its 200-day moving average (DMA) support, I pondered the possibilities for a breakdown. The U.S. dollar index typically sustains moves through its 200DMA, whether a breakout or a breakdown, so I braced myself for the need to jettison my long dollar positions. Instead of follow-through, the U.S. … Read more
The Extreme: Best Buy Regular readers know that my favorite trades come on the heels of extremes in financial conditions. After President Trump announced a 10% tariff on $300B of Chinese imports, I saw a lot of extremes that made me sit up and take notice. One of the biggest extremes occurred in the shares … Read more