Tuesday, May 17, 2016


Chart of USD/CAD below, CAD bottomed January 20th:

Chart of WCS crude in USDs below, also bottomed January 20th:

This is the same type of action we reviewed last week in the AUD/USD pair vs. the Iron Ore price in USDs over the last months action in the price of that commodity.


Random said...

According to the WSJ (unreliable source) China is attempting to boost exports:


"In policy guidelines released Monday, the State Council, the government’s cabinet, called for greater lending by banks to support small-scale and profitable exporters and said it would expand rebates of value-added taxes. It also promised to reduce short-term rates for export credit insurance, which protects exporters against nonpayment by foreign customers. “Presently, the foreign trade situation is complicated and severe, elements of uncertainty and instability are increasing and downstream pressures are continuously growing,” the State Council said."

Matt Franko said...


To the extent they will lower the prices for their goods in USD terms, it is generally bullish USD imo...

Look like the "innovators" are considering taking their "ordinary people" down to 2 rations of dog brain soup per day from the 3...

Matt Franko said...

For "credit insurance" see here:


"Drawback: The goods are gone and the buyer might not pay. This risk can be greatly reduced by obtaining credit insurance from the Export-Import Bank of the U.S. on the foreign accounts receivable. Cost can be minimal, viz. about 65 cents per $100 of the invoiced amount for a policy that provides 95% coverage. Visit www.exim.gov for details."