Loonie Headed Higher?

[the big wheel]

Not an expert but it baffles me with all the debt that is in this country that there is increasing confidence in the dollar. Is it because other countries are doing even worse partly?

[farming101]

Double top?

[errolanderson]

Double top?

farming101 . . . gold is technically quite overbought and due for a sharp setback day. This could maul the loonie . . . . good observation.

[farming101]

.7625 attained. Rally intact

[biglentil]

farming101 . . . gold is technically quite overbought and due for a sharp setback day. This could maul the loonie . . . . good observation.

The fed capitulates on QE, the economy on shaky ground, debt levels sky high, geopolitical conditions deteriorating, central banks stockpiling gold at the fastest pace since the 70's. I wouldn't bet on gold pulling back much before the next leg higher. Gold the barbarous relic is becoming more relevant then ever.

[chuckChuck]

Its so laughable when Trump repeatedly says China is paying the tariffs! Are Trump supporters so stupid that they can't figure this out? LOL Trump the greatest con man ever!

"U.S. President Donald Trump says China pays the tariffs he has imposed on US$250 billion of Chinese exports to the United States.

But that is not how tariffs work. China’s government and companies in China do not pay tariffs directly. Tariffs are a tax on imports. They are paid by U.S.-registered firms to U.S. customs for the goods they import into the United States.

Importers often pass the costs of tariffs on to customers — manufacturers and consumers in the United States — by raising their prices."

https://business.financialpost.com/news/economy/explainer-who-pays-trumps-tariffs-china-or-u-s-customers-and-companies

[errolanderson]

The fed capitulates on QE, the economy on shaky ground, debt levels sky high, geopolitical conditions deteriorating, central banks stockpiling gold at the fastest pace since the 70's. I wouldn't bet on gold pulling back much before the next leg higher. Gold the barbarous relic is becoming more relevant then ever.

big lentil, excellent points . . . Fed July rate decision will have a direct impact on gold. Trump wants rates to drop to weaken the USD and support the flow of money into equities. Powell stated he may not bow to Trump demands. If Fed holds rates steady, this could a disappointment for stocks and gold.

We’ll know soon.

[ajl]

Its so laughable when Trump repeatedly says China is paying the tariffs! Are Trump supporters so stupid that they can't figure this out? LOL Trump the greatest con man ever!

"U.S. President Donald Trump says China pays the tariffs he has imposed on US$250 billion of Chinese exports to the United States.

But that is not how tariffs work. China’s government and companies in China do not pay tariffs directly. Tariffs are a tax on imports. They are paid by U.S.-registered firms to U.S. customs for the goods they import into the United States.

Importers often pass the costs of tariffs on to customers — manufacturers and consumers in the United States — by raising their prices."

https://business.financialpost.com/news/economy/explainer-who-pays-trumps-tariffs-china-or-u-s-customers-and-companies

Actually the producer does bear the bulk of the cost of the tariff in a competitive marketplace so Trump supporters are not that stupid after all. An obvious example is India's pulse tariffs. They promptly dropped the price paid to the producer: the western Canadian pea and lentil grower. One of the reason that historically canola prices were behind soy was due to China having a 9% tariff on canola seed but only 3% on soy. This is back in the olden days when China could afford to import commodities. Anyways you can rest assured that China absorbing a large portion of those tariffs otherwise they will get undercut by other suppliers in the US market. Everybody in the world wants to export more product to the US so there is no lack of supply.

[chuckChuck]

Where there are many different sources of supply in commodities, then suppliers that are subject to tarrifs will have to drop their prices to compete. But US buyers still pay the import tarrifs that are passed onto to consumers and don't get the benefit of lower prices. It is a tax on US citizens.

In the case of Chinese made consumer items, they are such a huge supplier that in many examples there are no other suppliers in the short term. Again US citizens end up paying the import tarrifs to the US government.

China may lose market share but it is US consumers who pay the tarrifs.

Once you factor in the cost of retaliatory tarrifs imposed by China which have cost American and Canadian farmers billions of dollars, it is clear that everyone loses under Trumps trade war with China.

[SASKFARMER]

Hahahhahah

American companies are coming back home. Americans are working and guess what working people are happy and spend money at home or visit other places.

China makes shit and that is clear to see.

I for one would like to see a higher Canadian dollar.

[errolanderson]

Canadian dollar technically breaking higher. Fed caving to Trump’s lower rate demand plus BOC holding rates steady appear driving force. Next key resistance seen at 78 cents (IMO).

[chuckChuck]

The premiers are pushing for an exemption for Canada with Trumps Buy American law. Why is there so little criticism of Trumps protectionist policies that are hurting Canadian companies and farmers? I don’t understand why so many agrivillers are cheering him on when he is costing you and I and we are losing Canadian jobs? Yeah you don’t like Trudeau, but to completely to ignore Trumps attacks on our economy makes no sense. Whose side are you on folks?