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Canada News Flying Under The Radar Canada has been a predominant feature in financial news in the recent few months, with many discussions centered around the NAFTA and ‘new NAFTA’ agreement, the USMCA trade deal. But despite being such a significant story, it has arguably been overshadowed by the big moves in equity markets, Brexit negotiation drama and the trouble in emerging markets, i.e., Turkey, Brazil, and even Italy’s budget woes. So with the Canadian central bank, BoC, expectedly hiking rates a by 25 basis points on Wednesday 24th October, we decided to give Canada its time in the limelight it deserves and take a look at the Canadian economy.

For more information on the BoC rate decision, take a look at our Analyst Klavs’ article right here - > The Bank of Canada Rate Decision. USDCAD Chart - BoC Tax Hike causes 100pip drop before trend continues Canadian Currency Moves And Economic Stance Perhaps the best place to start would be to address the most recent price swings in the Canadian Dollar and some of the driving forces behind it. In the chart above, we saw a 100pip push lower in the USDCAD (USD weakening, CAD strengthening) on the back of the BoC’s decision to hike rates by a further 25 basis points to 1.75%.

Now despite the highly anticipated nature of this announcement, it’s the overtly hawkish comments from the executive committee members that perpetuated the move lower in the pair. So what was said and what does it mean for Canada going forward? Let’s begin with rates as that was the initial stimulus in the move.

BoC’s Wilkins, the Senior Deputy Governor, stated that “Policy Rate will need to rise to a neutral stance to achieve inflation target” that the BoC “Don’t have a preordained rate path” and that the “pace of rate hikes is dependent on the inflation outlook.” In short, this translates to the stance that most Central banks seem to be adopting and that is an accommodative and data dependent bias. Meaning that while their long-term goal remains the same, i.e., raising the rate to preserve the value of money by keeping inflation low, stable and predictable, the timing with which they are willing to make changes is flexible and the comments from both Wilkins as Governor Poloz support this. Poloz went on to state that the removal of the word ‘Gradual’ from monetary policy forward guidance “Permits us to raise rates at a faster or slower pace depending on developments.” This statement helped to perpetuate the move higher in the Canadian Dollar because it demonstrated that Canada’s government is taking the action it needs to maintain its mandate and not blindly sticking to a set term of rate hikes regardless of momentary data blips.

Canadian Dollar Crosses Overlay - Shows Canadian Strength across the board during comments Trade Agreements And Policies The next aspect we’ll take a look at is the elephant in the room, the United States-Mexico-Canada Agreement (USMCA). Our analyst Deepta takes an extensive look at USMCA here - USMCA - NAFTA 2.0 – and what it means for Canada, so what I want to focus on is BoC’s Wilkins’ comments. She states that the Canadian “Economy is becoming more resilient.” And that “USMCA reduces uncertainty,” and that fact alone is good news, Governor Poloz does also state the caveat that “Tensions between US & China could hit Canadian export growth.” Since the comments, the USD/CAD rate has seen quite a bit of activity however it has not moved much from where it was beforehand.

The market seems to be interpreting the hawkish comments from the BoC members regarding both rates and USMCA as positive for the Canadian Economy and is pricing it in accordingly. Are Canadian Stock Markets In Trouble? Amid the recent ‘Global Stock Rout’ the S&P TSX ended October down 6.51% following a somewhat hard month.

However, during this risk-off flight to safety, the S&P TSX Index may have had its pain exacerbated by the heavy makeup of energy companies populating the Canadian index. As discussed in previous articles - Oil - Can basic Economics be responsible for an 11% decline – Oil has seen some very aggressive sell-offs. Current market conditions have the commodity breaking below the $50 a barrel level amid supply concerns and growing global tensions.

Keep in mind with Canada’s energy companies occupying an 18.6% weighting of the S&P TSX; undoubtedly this has been a weight around the Index’s neck dragging it lower. Contrary Views To The Health Of Canada's TSX Index Chief Investment Strategist for BMO Capital Markets, Brian Belski stated that the similar declines were seen in 2012 & 2014 (of 11.5% and 12.5% respectively) on average saw rebounds of 18.22%. And he considers this particular sell-off as no different given that it was a flight to safety out of equities and that the major US indices led the TSX's decline.

RBC Global Asset Management chief economist Eric Lascelles mirrored this sentiment and stated that despite the reason decline and consumer concern over rising interest rates, the Canadian Economy is healthy and he cannot see it declining further into bear territory. Lascelles also says that instead of fearfully selling off, investors should seek opportunities to buy as the stock market dips since the financial crisis have typically unwound quickly. So with proactive steps being taken by the Canadian central bank and consensus for a turn around in the Canadian stock market, we could be looking a further strengthening in both the Canadian Economy and potentially the Canadian currency crosses — certainly ones to consider for the watchlist over the coming months with the next BoC decision taking place on December 6th.

For more information or any questions feel free to reach out to me on twitter – @Alex_GoMarkets This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

All the talk about whether Mark Carney will leave the Bank of England in 2019 or not has ended, the current Bank of England governor has extended his stay at the central bank until January 2020 as Chancellor Philip Hammond announced it on Tuesday. So it is now time to focus on the upcoming Bank of England rate decision at on Thursday. Who Decides The Rates?

Interest rates, set by the Bank of England’s Monetary Policy Committee, is made up of nine members – The Governor, the three Deputy Governors for Monetary Policy, Financial Stability and Markets & Banking, the Banks' Chief Economist and four external members appointed directly by the Chancellor. Expectations It is highly unlikely that the interest rates will rise from 0.75% in the following meeting. However, it will be essential to keep an eye out about the latest UK labour market data, which released by Office of National Statistics for any indications on the central bank's further moves.

UK Economy & Brexit Update On 10th September, the Office of National Statistics released the latest data which showed that the UK gross domestic product (GDP) grew by 0.6% in May to July, up from 0.4% growth in three months to June and highest since August 2017. Some positive news on the Brexit negotiations - the European Chief Negotiator for the UK Exiting the EU stated that a Brexit deal could be reached in 6 to 8 weeks. However, as we know from the Brexit process so far, anything could happen in the coming weeks, so it is still vital to keep an eye on comments coming from both sides to see if reaching a deal is even possible.

Financial Markets We saw the Pound strengthen this week against the US Dollar after the latest GDP figures and comments from the EU’s chief negotiator to its highest level since the beginning of August. GBP/USD is currently trading at around 1.30 level. GBP/USD Daily Chart As the Pound strengthened, we saw the FTSE100 fall to its lowest level since April.

Currently trading at around 7270 level. All eyes will be on the Thursday’s decision and comments from Mark Carney. FTSE100 Daily Chart The upcoming rate decision is set to be announced at 1.30 PM London time (GMT +1) Remaining Bank of England Rate Announcement dates for 2018: 1st November 20th December By Klāvs Valters ( Market Analyst) This article is written by a GO Markets Analyst and is based on their independent analysis.

They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk. Sources: Go Markets MT4

Just over a month ago Apple became the first company to reach $1 trillion market cap after its shares closed at $207 per share. Now Amazon has become the second company to hit the historic milestone after its share price rose to $2,050 per share. In case you didn’t know, Amazon offers a range of products and services through its websites.

The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company's products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.

Not many people expected Amazon to reach $1 trillion this quickly. Back in March, Brent Thill an analyst from Jeffries stated that Amazon would reach the milestone in 2022 when the share price was at around $1585 per share. But since then, we have seen the share price increase by around 28% and Amazon become world’s second company to reach $1 trillion market cap.

With Amazon continuing acquiring new companies, we could see the share price rising in the future. The Worlds Richest Person It is worth pointing out that Jeff Bezos, Amazon’s CEO is world’s richest person with total net worth of $166 billion. He has increased his net worth by $66 billion just this year alone, according to the Bloomberg Billionaires Index.

Interestingly, if you bought $10,000 worth of Amazon shares back in September 2008 at $80 per share, they would now be worth around $253,750 USD at the share price of $2,030. You might not be the world's richest person had you made this trade, but perhaps pleased with the overall profit margins. So has the market topped out or is this just the beginning of further growth for the Nasdaq stock?

The jury is still out on this one. By Klāvs Valters ( Market Analyst) This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk. Sources: TradingView, Google.

AUDNZD – Daily Despite the Australian Dollar having a strong rally towards the end of last year, it appears the New Zealand Dollar is once again regaining the upper hand against its counterpart. New Zealand is ticking many of the economic boxes of late, and from a fundamental point of view, it's not hard to envisage a return of strength for the Kiwi currency. These boxes include a combination of recent policy updates such as the steering away from negative rates and also how New Zealand has successfully managed the global pandemic thus far.

Using the Ichimoku cloud indicator on the daily timeframe, we see an array of factors contributing to the current downtrend in motion. Firstly, both price action and the longer-term lagging span (purple line) are operating below the cloud, which paints an inherently bearish picture. Next, the cloud's thickness located above the current price suggests much resistance to the upside if challenged.

That's not to say it won't fail, but it could cause problems for those looking to go long. We also see the MACD indicator maneuvering southwards with plenty of space to deepen into further bearish territory. Overall, the longer-term outlook at this stage looks rather bleak for the Australian Dollar.

Even shorter-term charts such as the hourly shown below, many indicators replicate the daily snapshot. Interestingly, the price has used the weekly pivot of 1.0673 as resistance, essentially rebounding from this level with pinpoint accuracy. In terms of potential price targets, longer-term, the pair look set to re-test the previous low of 1.0418, where the AUDNZD began the last rally in December.

Additionally, a DiNapoli calculation triangulating the swing highs/lows of 1.10438, 1.04181, and 1.08432 suggests 1.02175 as another possible target. Should this theory come to fruition, it would bring AUDNZD back towards pre-pandemic levels. Given how well both New Zealand and Australia are dealing with the Covid-19 situation, it seems logical for the price to return to this region.

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

GBPUSD - Has Cable run out of steam? Looking at GBPUSD, we can see the month of November has kicked off with some impulsive moves higher off the back of potential Brexit deals concluding behind closed doors. In the short-term, we might be witnessing the tail end of the recent rally as price action is showing signs of exhaustion, particularly as it reaches the previous weekly pivot region of 1.31.

We can clearly see some resistance emerging here. Another element to remember is that the trend remains firmly bearish on the daily timeframe, so hints of selling pressure creeping in is perhaps to be expected. If sellers do regain some control, the chart above suggests a key target for the pair would be the double weekly pivot area of 1.29.

Generally speaking, whenever we see these type of pivots, price tends to gravitate towards them as market participants seek a middle ground. GBPJPY - Looking Shaky Above The 200 Day MA Switching to GBPJPY, we are technically in bullish territory thanks to yesterday's close above the 200 Day Moving Average (Gold Line). Considering how price reacted last time above these levels, it might be temporary unless we see further positive reports released for Sterling in the coming days.

Similar to GBPUSD, I see a potential drop on the horizon for the pair, targeting another weekly pivot. On the hourly chart below, we see evidence of some bearish divergence developing on the RSI (Relative Srength Index), coupled with price teetering around overbought levels. It may well become the fuel that sparks a shift towards the weekly pivot of 145.75.

If you would like to see more pivot point action, take a look at our Chart Of The Day on the daily report by Klavs Valters. For more information on trading Forex, check out our regular free Forex webinars. Sources: TradingView.com

2021 has been a profitable year for stocks in the Dow Jones Index. Since the turn of the year, the Dow has seen what appears to be a roaring rally with no end in sight, fuelled by a return of investor confidence and a stimulus package aiming to revitalise a stagnant U.S economy. In the first quarter of 2021, we've seen an increase of over 3000 points (approx. 10%) in the Dow Jones, setting all-time records daily.

One of the main stocks pushing the price ever higher is Chevron. With the resurgence of international travel and consumer demand plus the price of oil rebounding from historical lows, companies like Chevron and Halliburton have seen a wave of new investment. This in turn has boosted their stock price, contributing to the bullish wave in the Dow Jones Index.

One cannot ignore the rise of tech stocks. During the COVID Pandemic, YTD has seen a strong push for Intel (up 30.03% since 31/12/2020) which has contributed significantly to the rally. All indicators point to a bullish market for some time to come whilst bearing in mind we are still in a COVID volatile environment and everything can change.

The market speaks for itself and the market is well and truly behind the rally. Intel Chart Above Source: Yahoo Finance Chevron Chart Above Source: Yahoo Finance By Hasan Albandar