Loonie Headed Higher?

[FertaCloud]

Oil price always plays a roll. if things get wild with Iran could oil spike hard and the CAD follow it up maybe.

[errolanderson]

Sept loonie appears breaking above 76 cents. Gold rallying on ideas that Trump will bully the Fed to cut rates. Personal opinion: Dumb move.

USD in trouble . . . loonie being impacted by osmosis, but Cdn dollar trend remains up (IMO).

[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.