AI
Wednesday, July 12, 2017 1:40:41 PM
OT but Important: Canadian Dollar
Bank of Canada raised it's benchmark rate for first time in 7 years today 25bps to 75 bps.
FIRST TIME IN 7 YEARS. Wholly F*ck the Keynesians have screwed my (younger) generation of Canadians.
Anyways - the currency market has used this excuse to bid up the CAD to 0.786 (vs the USD) which is nothing else but a technical attempt to break the 2012 downtrend line. The $CAD is important to watch if you're holding Canadian miners of course. We'll know what happens in a week. Price of oil and Canadian interest rates are two biggest drivers of $CAD vs. $USD now.
On another note, Canada has their own version of Freddy and Fanny called the CHMC which insures any Canadian who can't pony up a 20% downpayment. Once the Canada housing market finally tops, the real carnage will begin when you hear ANY NEWS ABOUT A CHMC MANDATE ROLLBACK.
We have the longest, largest housing bubble in world FYI made possible by 10 nears of NIRP and the government sanctioned CHMC. The $CAD should go down when the bubble tops as foreign capital will recognize the Canadian property bubble is over and start pulling out. There would be a demand for $CAD if homes are sold for cash but it will be painful for Canada but much needed.
Bank of Canada raised it's benchmark rate for first time in 7 years today 25bps to 75 bps.
FIRST TIME IN 7 YEARS. Wholly F*ck the Keynesians have screwed my (younger) generation of Canadians.
Anyways - the currency market has used this excuse to bid up the CAD to 0.786 (vs the USD) which is nothing else but a technical attempt to break the 2012 downtrend line. The $CAD is important to watch if you're holding Canadian miners of course. We'll know what happens in a week. Price of oil and Canadian interest rates are two biggest drivers of $CAD vs. $USD now.
On another note, Canada has their own version of Freddy and Fanny called the CHMC which insures any Canadian who can't pony up a 20% downpayment. Once the Canada housing market finally tops, the real carnage will begin when you hear ANY NEWS ABOUT A CHMC MANDATE ROLLBACK.
We have the longest, largest housing bubble in world FYI made possible by 10 nears of NIRP and the government sanctioned CHMC. The $CAD should go down when the bubble tops as foreign capital will recognize the Canadian property bubble is over and start pulling out. There would be a demand for $CAD if homes are sold for cash but it will be painful for Canada but much needed.
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