Economic Outlook
The biggest trade deal in a decade is on its way to being fast-tracked through the U.S. Congress, which if happens means no debate, no amendments. What makes TPP or Trans Pacific Partnership different? It stands out in size as 40% of world trade will be involved. But it’s surrounded in secrecy. Singapore-based investor Jim Rogers explains that some industries are going to boom and some are going to collapse with the passage of this bill in this 3.41 minute interview.
The Trans-Pacific Partnership (TPP) is a proposed regional regulatory and investment treaty involving twelve countries throughout the Asia Pacific region.
Faber’s analysis of the last week and a half’s fnancial events and which markets the oceans of money being created are going to flow to. He thinks we are going to have a systemic crisis where it is going to be very difficult to hide, even in Gold. He states that one day soon Governments will take away 20 to 30 percent of individuals wealth. A thorough easy to understand analysis in this 5 minute clip.
Click image below for more comments from Marc:
…..And One Of The Most Tragic Images You Will Ever See
What the Godfather of newsletter writers, 90-year-old Russell is telling his subscribers to do right now as people continue to digest breaking news out of Greece and around the world. He discusses the war against deflation, gold, silver, and the horrors of war.
….read and view it all HERE
Canadian real estate hasn’t reached its full potential, according to one real estate mogul’s advisor.
“Canada is a vibrant economy and some people ought to step in and take advantage of it” said George Ross, executive vice president and senior counsel to the Trump Organization. “I think it’s under-utilized – not over-utilized.”
Ross has been advising Trump since the 1970s and has worked for Trump since 1996. He is also featured in “The Apprentice.”
According to Ross, investors should play the long-game when it comes to Canadian real estate. “I don’t think the buy-sell or the short sale is the answer,” Ross told BNN.
“[Real estate investors] are attracted because of the money, but they don’t talk about how long it takes to get the money and they don’t take about the fact you could be in there and not recover what you invested.”
It’s an interesting stance, considering CMHC’s recently released data is calling for fairly stagnant growth in terms of starts and prices over the next two years.
Housing starts are expected to decline by 4.1 per cent – and range between 166,540 and 188,580 units — in 2015. Prices, meanwhile, are expected to increase by 3.4 per cent, according to the Crown Corporation’s most recent housing forecast.
As for the near future, housing starts are expected to range between 162,840 and 190,830 in 2016.
The average price is expected to fall between $402,139 and $439,586 this year and between $398,191 and $457,200 in 2016.
“The gradual slowdown in the rate of price growth is explained by the expected change in the composition of MLS sales toward more moderately priced homes,” the Crown Corporation said in its official release.
Investment Hot Spots:
Lansdowne, Perth, Lotbinière, Bell Island, Garlands Crossing
USD TO CAD Overnight Range 1.2442-1.2530
New York traders wanted dollars and for some reason, they wanted them as soon as they sat down. The USD has gained across the board despite a modest miss in Jobless Claims. Perhaps, traders are following the lead of USDJPY moves which continues to defy gravity despite some claims that it is overvalued.
USDCAD had stalled just below 1.2500 in overnight action until a renewed plunge in Kiwi and Aussie contributed to the spike to 1.2530, currently.
Part of today’s USDCAD strength may be a result of yesterday’s BoC statement. Some analysts believe that the statement was doveish due to a reference to the currency (The Canadian dollar has strengthened in recent weeks in the context of higher oil prices and a softer U.S. dollar. If these developments are sustained, their net effect will need to be assessed as more data become available in the months ahead.) Extrapolating these words to mean “currency intervention” is a risk is a tad delusional as the BOC has not intervened in FX for over 15 years and has probably forgotten how.
Kiwi and Aussie were also active overnight. NZDUSD got hammered on lower prices for milk solids. AUDUSD dropped on a weak Capex number and USDJPY rallied when BoJ Kuroda failed to mention the currency in a speech. In Europe, Sterling dropped after a miss on Q1 data while EURUSD consolidated within yesterday’s range.
EURUSD appeared to consolidate yesterday’s losses in the European session but bounced higher in New York on the back of a news report suggesting that Greece and its creditors were making progress on an accord. EURUSD jumped to 1.0915 from 1.0830 on the news.
Looking ahead, tomorrow’s Canadian GDP data and month end portfolio rebalancing flows will ensure a volatile session. There are rumours that the 11:00 am fixing will result in USDCAD selling. WTI oil is softer, in part due to a report that OPEC won’t cut output. Oil is trading below support at $57.50/bbl which may be a direct result of the intraday US dollar strength.
USDCAD technical outlook
The intraday USDCAD technicals are bullish and looking for a move to the 1.2570-90 area which if broken should lead to 1.2820, the 2015 high. A move below 1.2480 would see losses extended to 1.2380 and still leave the uptrend intact.
For today, USD Support is at 1.2480 and 1.2440. Resistance is at 1.2530 and 1.2570.
Today’s Range 1.2480-1.2530
Chart: USDCAD 1 hour with uptrends shown Larger Chart
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