Canadian Dollar

Yes, Cash Is An Asset Class Again!

In a US Dollar bull market with interest rates at zero, cash is rightfully dismissed as a non-asset class. But, when the US Dollar is in a bear cycle, things change, irrespective of what US interest rates are.

Frontrunning: November 27

  • $10,000 in sight for bitcoin as it rockets to new record high (Reuters)
  • Senate Plans Tax Vote Amid Trump Sales Pitch (BBG)
  • Tax-Hike Fears Trigger Talk of Exodus From Manhattan and Greenwich (BBG)
  • Retailers’ Emails Are Misfires for Many Holiday Shoppers (WSJ)
  • Uncertainty Hangs Over CFPB as Two Vie to Lead Agency (WSJ)

Are Petrocurrencies Heading For Extinction?

Petrocurrencies are breaking away from their traditional tight link to oil prices, but all it would take for this link to return is for prices to fall bellow their current range...

Loonie Plunges After Bank Of Canada Keeps Rates Unchanged

After two rate hikes earlier in the year, once in July and an unexpected rate hike in September, the Bank of Canada decided to tread lightly, and kept its overnight rate at 1%, as everyone expected stating that "the current stance of monetary policy is appropriate" and changes its hiking tune, warning that "less monetary policy stimulus will likely be required over time."

Are Cryptocurrencies Inflationary?

Why would governments allow such an inflationary supernova to explode right in front of them when they presumably have the power to stop it? Here’s one possible - and of course disturbing - answer...

Dow Futures Over 23,000: Dollar, Global Stocks Jump As China Congress Begins

World stocks stayed near peaks and currencies moved in tight ranges on Wednesday as China’s 19th Communist Party Congress opened while focus in Europe turned to speeches from top euro zone central bankers before next week’s key policy meeting, as well as Catalonia's ultimatum due on Thursday.

Global Bond Rout Accelerates Even As Dollar Rally Fizzles

In a continuation of trading patterns observed over the previous two days, on Thursday the global bond rout deepened in the aftermath of the release of President Trump’s tax-cut plan, Janet Yellen's recent hawkish comments and renewed optimism over the health of the U.S. economy.

Loonie Loses All 'Surprise Rate Hike' Gains As Canada's Poloz Gets Cold Feet

The Canadian Dollar is tumbling - erasing all the gains following September's surprise rate-hike - as in his first speech since the, Bank of Canada Governor Stephen Poloz warns there is no “predetermined path for interest rates” and said the central bank will proceed “cautiously” as it assess the performance of the economy from here on.

World Stocks Pull Back Amid Rising Concerns Of A Market Correction

For the first day in three S&P futures have pulled back modestly from record levels as some investors cautioned that gains had gone too far, too fast, European shares are mixed while Asian equities extended their longest rising streak in almost two months as continued gains in Japan and India offset the losses in Hong Kong.

All Eyes On Draghi: Futures Flat, Euro Surges, Dollar Slides; Yuan Breaches 6.50

S&P futures are flat, still spooked by the WSJ's report that Gary Cohn will not be the next Fed chair, while both European stocks and Asian shares gain in a quiet overnight session in which everyone is looking forward to today's main risk event: the ECB meeting. The dollar continued to weaken against all of its peers with the Yuan breaching 6.50 for the first time since May 2016.

Loonie Soars After Bank Of Canada Unexpectedly Hikes Rates By 25 bps

With only 6 of 33 forecasters predicting a rate hike in today's Bank of Canada announcement, it was inevitable: the Bank of Canada surprised a good 75% of the market, and triggered massive stop loss orders in the looni, when moments ago it announced a rate hike of 25bps to 1%, sending the USDCAD lower by nearly 300 pips, the biggest spike in the loonie since March 2016.