Economic Outlook and Summary After strong economic indicators demonstrated an increased probability of a recession in the U.S, investors will be looking towards the Federal Reserve as they expect a rate-cut of 25 basis points. Despite a strong August for employment and business activity, an inversion of the 10- and 2-year yield curve and the […]

Economic Outlook and Summary The U.S Federal Reserve has recently signaled towards tightening monetary policy, after it cut interest rates for the first time since 2008—by 0.25 percentage points. Although the USD saw a brief decline, the Feds hawkish turn has resulted a rally of up to 1.25 percentage points, since the announcement. Further trade […]

Economic Outlook and Summary The U.S Federal Reserve’s dovish turn in the month of June caused the U.S dollar to register its first loss since January 2019. The Fed has signaled rate cuts could be coming in 2019 and possibly be in the month of July. Since the USD is heavily trade-weighted, it is still […]

Economic Outlook and Summary Federal Reserve Chairman Powell has signaled the Fed will look to cut rates, if necessary, in 2019 and it looks like they are prepared for U.S President Trump’s trade war and the implications of it on the U.S economy. Expectations around the Federal Reserve believe to be that there will be […]

Economic Outlook and Summary The Bank of Canada is currently following in the footstep of the Federal Reserve by taking a more dovish stance and downgrading the outlook in accordance to the reality of available data. The struggling Canadian dollar has been largely range-bound between 73 and 77 U.S cents since last summer, still lacking […]

Economic Outlook and Summary The Federal Reserve announced that it would not raise interest rates for 2019 and it does not look like they plan for any rate hikes until next year. An inverted yield curve in the U.S. is alarming the Fed and investors all over as it shows signs of an oncoming recessionary […]

Economic Outlook and Summary U.S and Canada’s central banks have shifted into a wait-and-see mode now that their policy rates are narrowing in on the lower bound estimates of the neutral range. Waiting will hopefully reset the bar for further rate hikes in 2019, but there is uncertainty surrounding an economic recovery that can sustain […]

Economic Outlook and Summary Overall, not much change has occurred since last month’s currency forecast. Although the US Dollar has potential to strengthen at times, due to a return of risk aversion, it is expected that the USD will continue to trend downwards. Hopefully our world leaders leave the global trade flows unhampered which will […]

Economic Outlook and Summary As we saw late last year, our CAD depreciated by 8% against the USD. As it turns out, so far, we have seen the USD now dramatically dropping. This is particularly due to the return of risk taking after the collapse in the global stock market last year. Therefore, for the […]

Economic Outlook and Summary The month of November featured the Canadian Dollar and Economy dropping to yearly lows with a bearish outlook for the near term. A major factor was the significant drop in crude oil prices since the previous month hitting lows at around January 2016 levels. There have been hints at a slightly […]