Loonie Headed Higher?

[macdon02]

Fed rate cut proposed for late July could have a big impact on the loonie and gold. Market has already dialed-in at least a 1/4% rate cut . . . some talk of a 1/2% cut. The U.S. economy is just seeing smoke right now. What happens when an economic fire breaks out? Does the U.S. go to negative rates like Europe?

Should the Fed shock-the-market and not cut rates, gold may be vulnerable to a heavy sell-off (IMO), the loonie would be hit as well. The loonie is really being impacted by factors outside of our borders . . . .

They are in the corner, (central banks) the difference from now and previous years is US is holding the world up. Purely on capital flow, it's the prettiest ugly sister and Powell is bending over for Draghi and Lagarde. He'll roll over on them eventually when fixed income funds at home go bust(Chicago pensions). Gold has risen $200 while DX is holding. Behind the curtain inflation is being noticed( think 1970s) and with that higher rates. This calm will break and it won't be like 08. The difference from then and now, they can't cut, if they do it'll provoke hoarding rather then stimulus. If rates are negative at the bank, wil you convert grain to cash? Or store your "wealth" in commodities. The average person will use the opportunity to pay off debt or buy equities that keep seeing new highs. They won't stimulate the economy with new purchases

[farming101]

CAD posting a sell signal today

[biglentil]

Fed rate cut proposed for late July could have a big impact on the loonie and gold. Market has already dialed-in at least a 1/4% rate cut . . . some talk of a 1/2% cut. The U.S. economy is just seeing smoke right now. What happens when an economic fire breaks out? Does the U.S. go to negative rates like Europe?

Should the Fed shock-the-market and not cut rates, gold may be vulnerable to a heavy sell-off (IMO), the loonie would be hit as well. The loonie is really being impacted by factors outside of our borders . . . .

heavy sell off in gold not likely, even if retail is too obtuse central bank demand is sky high. Yes lots of fed jawboning, but their back is against the wall.