USD Fallout

[errolanderson]

U.S. dollar remains in-a-dive . . . . Equity money appears flowing out of U.S. markets.

This is supporting crude oil which is supporting the Cdn dollar. Japanese Yen and Euro biggest beneficiary. Loonie in a modest climb. Crude attempting to break above $50 per barrel once again.

[danny W1M]

Must be making wheat attractive in the global market place. MGE +11cents

[errolanderson]

Danny, you're right, this is what the doctor ordered for the wheat market.
U.S. badly needs a weaker dollar. Loonie may rise more than many think.

Further Fed rate hikes may now be off-the-table.

[errolanderson]

U.S. dollar fallout continues . . . prompting further gains in crude oil. Loonie now breaking above 74 cents.

U.S. grains receiving a near-term boost for USD decline. Yellen talking-the-talk of of June Fed rate hike. But unlikely to walk-the-walk (IMO) given worsening U.S. economic data. This realization could place a near-term floor on the USD and a top on crude in my view.

[farming101]

July crude failure of $51.64 says lower. $48 very weak support. Below that who knows

[Hopalong]

Optimism over Trump on US economy seems to be fading, especially effects that might come from a new tax bill.
Dismal record so far in getting promises through Congress.
Some speculation that position on trade, greenhouse gases and climate change may change in response to other country pressure and lack of support in Congress.

[biglentil]

Bitcoin soars to $2950cad, Trumpforia is over, Chinese Banks in big trouble, Toronto real estate crashing. Winds blowing hard as it escapes from the sails of farmland values. Things are changing quick where to? Nobody knows.

[errolanderson]

Economic reality beginning to set in. New York Times article today . . . .

https://mobile.nytimes.com/2017/05/26/business/economy/economic-growth-gross-domestic-product.html?_r=0&referer=https://www.google.com/

[Daylate]

So who comes out of the next down turn the least unscaved? It sure seems like in an extremely messed up world, the US is able to Garner enough attention and keep people believing in its $$$$

[biglentil]

So who comes out of the next down turn the least unscaved? It sure seems like in an extremely messed up world, the US is able to Garner enough attention and keep people believing in its $$$$

The USD reserve status is getting attacked on all fronts. Bitcoin, Saudis OneGram gold backed crypto, the Russian and Chinese currency swap alternatives to SWIFT including a gold futures market with actual physical settlement. The USD seems to be quickly losing relevance and favour on a world stage. Don't underestimate the effect this will have on the current status quo. No one wants to get stuck with a hot potato.

[errolanderson]

Rising Canadian dollar as result of USD weakness and upbeat comments from the Bank of Canada last week. Cdn GDP to be released Wednesday morning.

Trump says he hit-a-homerun in Europe. Europe doesn't seem to agree. More USD weakness on White House faux pas appears possible. Loonie 75 cents plus? . . . .

[errolanderson]

More punishment for the U.S. dollar . . . U.S. jobs data a big miss today. Loonie gradually pushing into a higher trading range?

[farming101]

Ha Errol I wondered if you would add a post to this thread today.
Regarding the CAD, yes it could be argued it is doing better than the USDX but not much.
Most likely scenario - they both stay weak. Oil weak today - low 40's in the nearby a possibility?

[errolanderson]

Ha Errol I wondered if you would add a post to this thread today.
Regarding the CAD, yes it could be argued it is doing better than the USDX but not much.
Most likely scenario - they both stay weak. Oil weak today - low 40's in the nearby a possibility?

farming . . . Oil down, but loonie up . . . showing resilience in my view. Janet Yellen mid June rate hike or not decision may be the next big currency market factor.

[errolanderson]

Canadian jobs data released this morning (June 09) was impressive. 54,500 jobs were added in May, well above expectations of 15,000. Jobs added were mostly full-time. Canada's unemployment rate is now 6.6%. Manitoba has the lowest unemployment in the country.

This data is supportive to the Cdn dollar . . . .