As the global economy gears down through the dog days of summer, the US dollar is bid and commodities wobbling once more. This chart of the Canadian dollar versus the greenback suggests a similar pattern may be in the offing in the second half (2H) of 2016 as we saw last year. We have been expecting weakness in risk assets to resume and will soon find out if that is the case. The loonie is a useful barometer to watch.
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Cory’s Chart Corner
Load MoreMany will focus the blame of market drawdowns on the tariffs and ignore the fact the SP500 (only a few weeks ago) was trading at 4 std devs above its historical mean…valuation also matters.
BREAKING: The European Union is preparing further counter measures against newly announced US tariffs of 20%, per CNBC.
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