Canadian Dollar

When the dollar falls, we are told it is logical.  The empire is crashing and burning.  When the dollar rises, the markets, we are told are manipulated.    Well, the dollar is back, and the technical correction ended, near we told you it would.  

The US dollar's run stopped last week, but not before new highs were recorded against the euro, sterling, and the yen.   By the end of the week, the euro had risen 1.4%, sterling 0.9%, and the yen had risen as much as the two of them put together.  It was the biggest weekly gain for the yen in 16-months.  

There is one pressing question that international investors will be mulling this weekend:  How far and how long is the dollar's correction?   

Deny it.  Engage in all kinds of mental gymnastics to dismiss it if you must,  but the fact is the US dollar is rising, and not just because of negative developments abroad, but positive economic developments in the US.  

• DAX’s ‘Brilliant’ Run Sends Red Flag as German Index Tops Record (BBG)
• U.S. military warned of possible Islamic State attacks at home: report (Reuters)
• Russia Faces First Recession Since 2009 as Banks Add to Oil Pain (BBG)
• Dodgy Home Appraisals Are Making a Comeback (WSJ)
• U.S. Corporate Bond Sales Pass $1.5 Trillion for Annual Record (BBG)
• Basic Costs Squeeze Families (WSJ)
• China Orders Stricter Checks on Local Debt as Sales Surge (BBG)
• Draghi Powerless on ECB Path Toward QE Without Reforms (BBG)

It was recently reported in the news that Walmart is engaged in a(nother) “food drive” to help feed the needy. Isn’t that nice? Well, it would be, if it weren’t for the fact that the “needy” in these food-drives are its own employees. “Let’s succeed by donating to associates in need,” says the sign in an Oklahoma Walmart.

Unvarnished analysis as if people were not stupid, easily manipulated, or subject to false consciousness.

A look at the global capital markets as if analysis matters.

Contrary to the death of the dollar chatter, the US currency continues to appreciate.  Here's why there is still punch left in the bowl.  

A look at the price action of the dollar, S&P 500 and US 10-year yields as if analysis matters. 

The march of global de-dollarization continues. In the last few days, China has signed direct currency agreements with Canada becoming North America's first offshore RMB hub, which CBC reports analysts suggest "could double maybe even triple the level of Canadian trade between Canada and China," impacting the need for Dollars.But that is not the week's biggest Petrodollar precariousness news, as The Examiner reports, a new chink in the petrodollar system was forged as China signed an agreement with Qatar to begin direct currency swaps between the two nations using the Yuan, and establishing the foundation for new direct trade with the OPEC nation in the very heart of the petrodollar system. As Simon Black warns, "It’s happening... with increasing speed and frequency."

What if global capitalism is not about to collapse?  What if the sun rises next week, and the great apocolypse called for and predicted does not materialize yet, what then for the dollar?  

A look at the currency market as if analysis mattered.  

• Fed set to end one crisis chapter even as global risks rise (Reuters)... you mean, for the third time?
• Insider-Trading Probe Focuses on Medicare Agency (WSJ)
• He's sorry: Rajoy Apologizes as New Wave of Graft Allegations Hits Spain (BBG)
• China could 'punish' Hong Kong over protests, says ex-HK central bank chief (Reuters)
• Dubai Insists the Boom is Not a Bubble This Time Around (BBG)
• Bank-Data Sharing Accord Expands Push to Find Tax Cheats (BBG)
• Deutsche Bank Sinks to Third-Quarter Loss on Legal Costs (BBG)
• Kim Jong Un Executes 10 Officials for Watching Soap Operas (BBG)
• French drugmaker Sanofi sacks CEO Viehbacher (Reuters)

Overview of the capital markets as if they were not managed by an evil cabal.

RCMP Press Conference at 2pmET - Live Feed

Two days after two Canadian soldiers were hit by a car driven by Martin Couture-Rouleau, a 25-year-old Canadian who, as The Globe and Mail reported, "converted to Islam recently and called himself Ahmad Rouleau."

At least two people are injured, including a soldier, after shots were fired in the Parliamentary precinct in Ottawa on Wednesday morning; one shooter is dead and police suspect as many as two others are on the loose. A dark-clothed gunman fired the shots just before 10 a.m. at the Canadian War Memorial, where a uniformed soldier was shot. The gunman then fled for Parliament Hill, where he unleashed more gunfire inside Centre Block. A security guard was injured before the sergeant-at-arms shot the suspect dead, according to multiple reports. Ottawa Police said there was also an incident near the Rideau Centre, a large mall metres from Parliament Hill. Still active shooter, 3 separate shooting sites, Multiple gunmen, 1 gunmen dead, soldier dead