Photo by Michelle Spollen on Unsplash USD/CAD strengthens around 1.3600 in Wednesday’s early Asian session. Traders are pricing in nearly 60% odds of a 50 bps Fed rate cut. Canadian CPI rose 2.0% YoY in August vs. 2.5% prior, softer than expected. The USD/CAD pair trades in positive territory for a fourth consecutive day near 1.3600 during the early Asian session on Wednesday. The US Dollar (USD) gains ground after the better-than-expected Retail Sales data. Traders brace for the Federal Reserve (Fed) interest rate decision on Wednesday, which is widely anticipated to lower its interest rate for the first time in more than four y...
Image Source: Pixabay Silver is range-bound, amid bullish momentum, but flattening RSI signals indecision. A break above $31.09 could see Silver testing $31.75 and the YTD high at $32.51. On the downside, $30.52 is first support, followed by $29.86, with additional levels at the 100-DMA ($29.36) and 50-DMA ($28.98). Silver price consolidates for the second straight day, prints back-to-back doji’s a sign that neither buyers nor sellers control the grey’s metal price action. At the time of writing, XAG/USD trades at $30.69, virtually unchanged, as the Wednesday Asian session commences. XAG/USD Price Forecast: Technical outlook Silver ha...
Image Source: Pixabay EUR/USD flattened just below 1.1150 on Tuesday. Markets are pulling into the midrange ahead of the Fed’s Wednesday rate call. Markets are still split on the depth of an initial Fed rate cut. EUR/USD halted a near-term bullish recovery on Tuesday, easing off of bullish pressure and chalking in an indecision pattern just above 1.1100 as Fiber traders buckle down for the wait to Wednesday’s appearance from the Federal Reserve (Fed).It’s a low-tier showing on the European side of the economic calendar this week, leaving traders to spin their tires ahead of the Fed’s hotly-anticipated midweek rate trim. US Retail S...
In his webcast titled “1984” in remembrance of George Orwell’s dystopian novel, DoubleLine Founder and CEO Jeffrey Gundlach on Sept. 10, 2024, dives “into the subject of the Fed and some of the variables that will likely underpin their logic and their thinking” at the Sept. 18 meeting of the rate-setting Federal Open Market Committee (FOMC). In his analysis, Mr. Gundlach finds both components of the Fed’s dual mandate, employment and prices, support a rate-cutting cycle. If energy prices remain near present levels, he expects sub-2% Consumer Price Index (CPI) reports in a few months, and he cites new signals of an imminent recessi...
Image Source: Pixabay According to mainstream economics, interest rates are the price of money, but the Austrian school says differently. To understand these conflicting ideas, we must understand what prices, money, and interest are. First of all, prices are exchange-ratios between goods and/or services. An apple might be exchanged for a pear or two bananas. In that case we can conclude that the price of an apple, at that moment, is either one pear or two bananas. However, direct exchange has many disadvantages, and one of them is the price system. Expressing an apple’s price in pears and bananas doesn’t tell a dairy farmer or baker much...
Image Source: Pexels Lawler: Early Read on Existing Home Sales in August,Calculated RiskFrom housing economist Tom Lawler: Early Read on Existing Home Sales in August Based on publicly available local realtor/MLS reports released across the country through today, I project that existing home sales as estimated by the National Association of Realtors ran at a seasonally adjusted annual rate of 3.88 million in August, down 1.8% from July’s preliminary pace and down 3.7% from last August’s seasonally adjusted pace. Unadjusted sales should show a slightly larger YOY % decline, as there was one fewer business day this August compared to las...
Image Source: Pixabay The ultimate source of value for common stocks is the earnings of corporations. In the last four and a half years the S&P 500 has risen 124%. How is that increase related to earnings and what does it imply for the future of the market?Video Length: 00:08:50More By This Author:Brief Update On The Recent Market Decline Tesla’s Valuation Fountain Of Youth Investor Memo Q2 2024: How Long Can This Go On?...
Image Source: Unsplash During my time as a fighter pilot, a one-versus-one dogfight was one of the most challenging types of flights: a mission pitting one pilot’s skills against his opponent. This air combat training was not the type of mission where you wanted to come home second best.The new category of single stock covered-call ETFs now has two sponsors offering competing funds covering the same underlying stocks. This type of ETF is new in the market, with the oldest funds operating for just over a year. Many have track records that are only a few months in length; however, the funds have been trading long enough to compare returns fo...
Image Source: Pexels Warren Buffett, often referred to as the “Oracle of Omaha”, has long been regarded as one of the most successful and astute investors in modern history. As the chairman and CEO of Berkshire Hathaway (BRK-A) (BRK-B), Buffett has built a reputation for making strategic, long-term investments that have paid off handsomely. His investment philosophy revolves around purchasing undervalued companies with strong fundamentals and holding onto them for the long haul.Each year, investors eagerly await Buffett’s moves, as his decisions have the potential to signal broader market trends. In a surprising turn of events earlier ...