"Good day… And a Happy Friday to one and all! Apparently, an email friend named Craig sent a letter to the Bank of Canada pointing out the perils of the bank’s low-interest bias, and guess what? He received a reply from the governor of the Bank of Canada, Mark Carney! WOW! So I guess Craig actually has friends in high places!
Well, no beating around the bushes this morning… Since yesterday, we have an all-out currency rally going on. Yesterday, the euro (EUR) was flirting with 1.33, and today, it is sending love notes to 1.34. The single unit actually touched 1.34 overnight, but currently sits just below that figure. Unbelievable, right? Well, it just shows to go you that even the ugly currency gets taken out and dined! I called it an ugly currency because many of you know that I’ve referred to the dollar/euro as an ugly contest. Right now, it appears that the dollar is winning the ugly contest. But as we all know all too well, that can change in a heartbeat…
Well, the price of oil has soared again, this time passing $108! When I saw that this morning, I immediately shifted my focus to the currency screens to see where the Canadian dollar/loonie (CAD) was trading. And much to my surprise, the loonie is trading in yesterday’s clothes, and in fact, the same clothes all week! What’s going on here? The price of oil is really pushing the envelope once again, and the loonie is stuck in the mud? Hmmm…
I think that the fear that this rise in the price of oil is going to be a tax on the nascent recoveries in the U.S. and other countries is keeping a lid on the loonie right now…
One other thought on the rise in the price of oil… maybe I’m looking at this incorrectly! Maybe oil has become another anti-dollar. So the price of oil is rising because the dollar is falling? Something to think about, anyway…"
at http://dailyreckoning.com/is-oil-the-new-anti-dollar/#ixzz1nKjAo0R3
Well, no beating around the bushes this morning… Since yesterday, we have an all-out currency rally going on. Yesterday, the euro (EUR) was flirting with 1.33, and today, it is sending love notes to 1.34. The single unit actually touched 1.34 overnight, but currently sits just below that figure. Unbelievable, right? Well, it just shows to go you that even the ugly currency gets taken out and dined! I called it an ugly currency because many of you know that I’ve referred to the dollar/euro as an ugly contest. Right now, it appears that the dollar is winning the ugly contest. But as we all know all too well, that can change in a heartbeat…
Well, the price of oil has soared again, this time passing $108! When I saw that this morning, I immediately shifted my focus to the currency screens to see where the Canadian dollar/loonie (CAD) was trading. And much to my surprise, the loonie is trading in yesterday’s clothes, and in fact, the same clothes all week! What’s going on here? The price of oil is really pushing the envelope once again, and the loonie is stuck in the mud? Hmmm…
I think that the fear that this rise in the price of oil is going to be a tax on the nascent recoveries in the U.S. and other countries is keeping a lid on the loonie right now…
One other thought on the rise in the price of oil… maybe I’m looking at this incorrectly! Maybe oil has become another anti-dollar. So the price of oil is rising because the dollar is falling? Something to think about, anyway…"
at http://dailyreckoning.com/is-oil-the-new-anti-dollar/#ixzz1nKjAo0R3
