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Lots of economic data and the BOJ announcement are really moving currencies

July 29, 2016

With US GDP and the BOJ announcement we are seeing some big moves in the currencies. The US Dollar is down over a full point on the index and gold is getting a buy. We chat with Chris about the overall trends that these data points and announcements from central banks mean for investors.

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Discussion
20 Comments
    DFS
    Jul 29, 2016 29:16 AM

    But the plunge protection team aka Exchange Stabilization Fund, is working hard, making sure the markets are all up.
    Making sure everyone (the great stupid masses) feel good.

    Jul 29, 2016 29:26 AM

    A bit off topic here but can anyone shed some light as to why Rye Patch Gold has had trade suspended? Thanks in advance for any info!

      Jul 29, 2016 29:25 AM

      yeah. very quiet.
      can’t even get a rumour on it

        Jul 29, 2016 29:42 AM

        Yes, I’m curious as to what Rye Patch may announce relative to their acquisition of the Florida Canyon Mine Project. They already released their NI 43-101 earlier in the month, and announced last month that they have the credit facility to fund the mine restart. Maybe they’ve got an action plan moving forward.

        Big Al & Cory – Whatever news breaks – let’s get Bill on the show for an update.

          Jul 29, 2016 29:00 PM

          News is out.
          Just the final details and completion of the Florida mine acquisition and the credit facility.
          Al – can you ask Bill what the final number on outstanding shares will be.
          It looks like its about to double/

            Jul 29, 2016 29:11 PM

            Thanks Tony & Excelsior! Now that trading has resumed, it will be interesting to see the price action leading into the weekend. Early trades in the US are basically unchanged.

            Jul 29, 2016 29:44 PM

            Thanks Tony. Agreed Clark.

            Here’s the press release for anyone interested:

            Rye Patch Announces Acquisition of the Florida Canyon Gold Mine, Release of Escrowed Funds and Conversion of Subscription Receipts, and Credit Agreement for US$27 Million Credit Facility
            Vancouver, British Columbia, July 29, 2016

            http://www.ryepatchgold.com/news/index.php?&content_id=273

    DFS
    Jul 29, 2016 29:30 AM

    Big Al, says it cannot continue…

    With the proviso that nothing continues indefinitely.
    The monetization of the debt is carefully crafted. This can go on for a long time, as long as the dollar is not destroyed.

    The bond vigilantes do not exist. They now all believe in the greater fool theory.
    “There will always be a greater fool to buy their bonds.”
    The greater fool is, of course, the government. I.e. us, you and me.

    The danger is China, which has the ability to destroy the dollar.
    I wonder how much territory will be conceded to satiate Chinese expansionary desires?
    Good luck Phillipines, you will lose some islands. Good luck, Taiwan.

    Jul 29, 2016 29:33 AM
      Jul 29, 2016 29:44 AM

      Gator:

      That was the same guy telling everyone to sell everything they had and buy silver in April of 2011. He is utterly clueless about how commodity markets work and cost those who listened to him tens or hundreds of millions.

    Jul 29, 2016 29:02 AM

    Bob,
    I didn’t read the article, but the technical odds are silver is going to break down in August. It’s certainly going to break up or down, but the downside is much more likely.

    Jul 29, 2016 29:47 AM

    Gator: I believe so as well. All the January bears have morphed into bulls.

    Anytime someone says sell everything you own and put it into XYZ, it’s a really bad idea.

    Jul 29, 2016 29:31 PM

    The dollars heading to 89-90. Oil is heading to $60.

      Jul 29, 2016 29:50 PM

      I agree.

      Speculators raise U.S. dollar net longs to highest since Feb-CFTC, Reuters

      NEW YORK, July 29 (Reuters) – Speculators raised bullish
      U.S. dollar bets this week to the highest in nearly five months,
      as investors were encouraged by a continued string of strong
      U.S. economic data that reinforced expectations of an interest
      rate hike from the Federal Reserve in 2016.
      The value of the dollar’s net long position increased to
      $13.66 billion in the week ended July 26 from $10.42 billion the
      previous week, according to Reuters calculations and data from
      the Commodity Futures Trading Commission released on Friday.
      That was the highest since Feb. 2. The week ended prior to
      the release of Friday’s weak U.S. gross domestic product data.
      (Reporting by Dion Rabouin; Editing by Meredith Mazzilli)

      Jul 29, 2016 29:25 PM

      Velma:

      Oil is going to go a lot higher than $60. The spread between supply and demand is shrinking, a lot.

    Jul 29, 2016 29:48 PM

    I was able to scalp 5.2% net profit today on DWTI. I am red on ECA, breaking even on BABA, still sitting on hundreds in profits on ASM and USLV. Stopped out on SH for son’s retirement account for $1.25 loss. Riding SLV for him up about 10 cents at the bell.

    Jul 29, 2016 29:26 PM