ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Just three weeks ago, speculators sent their bullishness on the Canadian dollar to a 4-year high. I followed along with the speculators and accumulated a short USD/CAD position. Two weeks passed before the payoff. It arrived in the form of an anti-dollar reaction to a rate hike from the U.S. Federal Reserve. Source: FreeStockCharts.com With … Read more
According to the latest CFTC data, speculators accumulated their largest net long position on the Canadian dollar (FXC) since February, 2013. This 4-year high in bullishness sticks out so much only because speculators have spent most of these four years being very bearish on the Canadian dollar. Prior to 2013, net longs were regularly 2 … Read more
Currency traders spent much of 2016 cycling through bullish and bearish periods on the Australian dollar (FXA) and the Canadian dollar (FXC), the Western world’s two biggest commodity currencies. In particular, bullishness on both currencies waned rapidly going into the U.S. Federal Reserve’s rate hike in December. Speculators adjusted positions to net flat and then … Read more
The U.S. dollar index (DXY0) has started 2017 on a notable losing streak. The index’s clean close today below 100 is the latest confirmation of that weakness. The U.S. dollar index continued its dribbling down the lower part of Bollinger Bands (BBs) that define the current downtrend. Source: StockCharts.com This extension of weakness has complicated … Read more
“Uncertainty about the global outlook is undiminished, particularly with respect to policies in the United States.” – Bank of Canada press release, “Bank of Canada maintains overnight rate target at 1/2 per cent”, January 18, 2017 I start with this quote from the Bank of Canada because it stands in stark contrast to global financial … Read more