The Canadian dollar has weakened and is back above the 1.32 line on Tuesday, after posting strong gains in the Monday session. Currently, USD/CAD is trading slightly above the 1.32 line. On the release front, Canada will publish Housing Starts, with the indicator expected to improve to 194 thousand. In the US, there are no major releases on the schedule.

On Wednesday, the Federal Reserve will release the minutes of its September policy meeting, in which it held rates at 0.25 percent. As well, FOMC members William Dudley and Esther George will speak at public engagements.

….continue reading HERE

….related:

US Dollar Looks to Move Higher

The last thing the US needs is a higher US dollar!

Higher dollar is due to:

1) Expected higher US interest rates
2) Less $USD in the world, as other pay back $USD loans
3) Demand for $USD dollar assets for safety.
4) Expected trouble in the European bank circles.

A higher is dollar is not good.

Below we have a very obvious accumulation pattern, watch this, a break out higher will be on news that wont be good for the world.

Investing Quote…

“I have yet to find a man, in or out of Wall Street, who is able to make money in (markets) continuously or uninterruptedly. Like anyone else, I have good and bad periods.” ~ Richard D Wyckoff

“I measure what’s going on, and I adapt to it. I try to get my ego out of the way. The market is smarter than I am so I bend.” ~ Martin Zweig

“It’s easier to fool people, than to convince them they have been fooled.” ~ Mark Twain

“Unless you can watch your stock holding decline by 50 per cent without becoming panic stricken, you should not be in the stock market.” ~ Warren Buffett

“By failing to prepare, you are preparing to fail.” ~ Benjamin Franklin

A slew of disappointing data out of Canada has sent the Loonie tumbling this morning (despite higher oil prices).

….read more HERE

related

Dollar Retrospective Chart 1971-2016: Next Major Cyclical Driver?

One of the most critical ideas you need to understand as an investor is that while the media focuses on stocks, they are the usually the last asset class to “get” major changes to the financial system.

This is simply due to liquidity and size of markets.

1.     Globally, the stock market is about $69 trillion in size, trading about $191 billion in shares per day.

2.     The bond markets are well north of $140 trillion, and trade about $700 billion in volume per day,

3.     The currency markets are unmeasured as every currency trade is ultimately a pairs trade (meaning to buy one currency you have to sell another). However, we do know that the currency markets trade $5.3 trillion in volume per day. 

So major changes in the markets first hit in the currency markets. And the key item to watch is the $USD.

The US Dollar is coiling tighter and tighter into a triangle pattern. If we get a breakout to the upside, the next target is 97.

Historically, spikes to this level have resulted in a stock market meltdown soon after.

If you’re concerned about a stock market meltdown you need to download our 21-page investment report titled the Stock Market Crash Survival Guide.

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Dollar bulls and bears were both restrained this week with prices stuck in a tight range as investor anxiety mounts ahead of Friday’s heavily anticipated Jackson Hole gathering. This event has seized center stage with markets most likely searching for key hints on U.S. rate hike timings which could dispel the period of uncertainty. There may be a possibility of Fed Chair Janet Yellen addressing the inflation dilemma in the States while also keeping the doors open for a live meeting in September to raise U.S. rates.

….read more HERE including Oversupply Fears Entice WTI Bears 

…related: 

Dollar Retrospective Chart 1971-2016: Next Major Cyclical Driver?