WTI crude oil is now surging above $60 per barrel pulling the loonie to 80 cents and possibly higher (IMO).
Recent stiff fallout in the U.S. dollar (USD) is contributing to Cdn dollar strength as well. This may be a rough year for the American greenback as the U.S. budgetary crisis broils and the Fed may be hard pressed to make their promised 4 rate hikes in 2018 while unwinding their massive $4.5 trillion balance sheet. Talking-the-talk is a lot easier than walking-the-walk . . . . Neither will happen in 2018 in my view.
There also appears to be a genuine threat of an incoming U.S. recession which could trigger more desperation of renewed money printing stateside (QE4). Shrinking bond yield spreads now telling a story.
Power of global central banks are definitely fading, gradually losing their manipulative market influence.
Welcome to 2018 . . . .
Recent stiff fallout in the U.S. dollar (USD) is contributing to Cdn dollar strength as well. This may be a rough year for the American greenback as the U.S. budgetary crisis broils and the Fed may be hard pressed to make their promised 4 rate hikes in 2018 while unwinding their massive $4.5 trillion balance sheet. Talking-the-talk is a lot easier than walking-the-walk . . . . Neither will happen in 2018 in my view.
There also appears to be a genuine threat of an incoming U.S. recession which could trigger more desperation of renewed money printing stateside (QE4). Shrinking bond yield spreads now telling a story.
Power of global central banks are definitely fading, gradually losing their manipulative market influence.
Welcome to 2018 . . . .
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