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Fed policy, USD weakness and the reflation trade – Here’s how they all will impact 2021

Cory
December 18, 2020

Marc Chandler, Managing Partner at Bannockburn Global ForEx and editor of the Marc to Market website joins me to recap the key market events of this week and to look ahead to next year. While the Fed didn’t do change any current policy the press conference gave a boost to almost every asset class out there. This lead to the drop in the US Dollar and more eyes on the reflation trade. These topics will be key drivers next year so we assess the potential changes that could be coming.

Click here to visit Marc’s website – Marc to Market.

Discussion
24 Comments
    Dec 18, 2020 18:39 PM

    Good interview guys, and yes, the dollar weakness has been a driver a many markets the last few months. As mentioned yesterday, just look at the strength of commodities like Copper, Zinc, Nickel, or the soft commodities like Corn, Soybeans, Sugar, Coffee, Wheat, etc… Then look at other global currencies or crypto currencies on the move again the last 2-3 months versus the dollar.

    While the dollar bear trade is getting crowded, and a relief rally is likely due, (correlated with a general market pullback sometime next year), there was still a lot of longer term chart damage done to the greenback in 2020.

    Dec 18, 2020 18:41 PM

    Just a quick heads up for anyone following the Dolly Varden Silver story:

    In about 20 minutes there will be an interesting interview with Maurice from Proven and Probable and the (DV) CEO at the link below:

    “Shawn Khunkhun the CEO of Dolly Varden Silver Corp. sits down with Maurice Jackson of Proven and Probable on the companies most comprehensive interview to date! With a rising silver price this interview is a must-watch If you are investing in silver or silver stacking! We will begin with a brief company introduction and then Shawn will discuss the genesis of DV followed by taking us the genetic and exploration model. Dolly Varden bosts a 44 Million Ounce Indicated Resource at 300 Grams Per Ton in the Golden Triangle of British Columbia. The company is a region that to date has discovered up to 1 Billion Ounces of Silver. Dolly Varden just completed a Flow-through Private Placement to $7,000,000 and has $0 Debt! In addition, Dolly Varden is coming off yet another successful drill campaign that has the Market’s attention.”

    https://provenandprobable.com/dolly-varden-silver-we-are-a-pure-silver-play-with-44-mill-oz-at-300-g-t/

    Dec 18, 2020 18:54 PM

    Greg M…………market recap….FRIDAY
    https://www.youtube.com/watch?v=e62ytCqvpns

      Dec 18, 2020 18:56 PM

      congress going to vote themselves a pay increase…..hummm

        b
        Dec 18, 2020 18:03 PM

        Why not?
        Trillions being printed, its only fair they get their share.

          Dec 18, 2020 18:06 PM

          Problem,…..a pay raise continues……..forever……..One time shot in the arm for everyone else….lol……….what a joke…..congress of idiots.., cross that out….liar , thieves….more like it…….

            Dec 18, 2020 18:37 PM

            Might be worthwhile to see who sponsored the bills in the House and Senate.

            Dec 20, 2020 20:41 AM

            Ditto David…..agree

        Dec 18, 2020 18:02 PM

        Just found out my Social Security check will go up 8 bucks a month.

          Dec 18, 2020 18:22 PM

          Yepee……One cheap bottle of wine…….extra…..per month….lol….
          No cakebread for you… 🙂

            Dec 18, 2020 18:23 PM

            We are going to have to ask Glen for a loan….. lol

            Dec 18, 2020 18:39 PM

            Two bottles of Oak Leaf at Walmart, including tax.

            Dec 18, 2020 18:23 PM

            Jajaja Jerry you know it! Cakebread all day or Rudd cab or caymus…

            Jerry, ex, Matt, Dt, everyone, gold is headed easily in the next 3-5 months to $2400-$2600 target. Realistic target said long time ago in real time. If they follow Jerry no one will need a loan there will be a scramble to get what’s left from liquor store lol…

            Dec 19, 2020 19:37 AM

            Glen………..You are , I think, and believe SPOT ON, with the PRICE…..
            Recovery has taken place, in the gold market, and we are on the continued path of UP.
            Anyone new here, needs to get Glen’s address, and send him and his wife, a couple of bottles of Cakebread………:)

          Dec 18, 2020 18:44 PM

          +8 bonzo.

      Dec 18, 2020 18:44 PM

      They appear to be arguing about $600 per person or more. Repubs want $600 and Dems want more. Kind of moot as not enough help for unemployed people. Smoke.

    Dec 18, 2020 18:57 PM
    Dec 18, 2020 18:37 PM

    Anybody see the Bidens’ interview on Cobair? Tough Irish Joe back in high school would’ve duked it out. Of course, that’s before he spent 47 do-nothing years in GOVT. Let’s bet on how long he lasts before the Camilla KO.

      Dec 19, 2020 19:47 AM

      Me think, Joe is a mental midget , and mostly all blow, ….a crook for sure, and a liar at that…..The snake den, is as full as it gets,…..THe USA INC, is on the way to nothing ness, sorry, for the kids…..perverted thinking from a school system that has been broken, a family that has been torn apart from mom’s in the wrong place……Truly sad.
      Hopefully, a few sound minds will surface another time, and at least chase the snakes out of the den…….And there is NO ONE IN CONGRESS, at this moment….that is talented enough to do so….I had a little hope in a few,…all turned out to be JOKERS….
      RANT OF THE DAY.

    Dec 18, 2020 18:40 PM

    Then he can cry about being the fall guy as he gets James Comey to quash his son’s prosecution

    Dec 18, 2020 18:00 PM

    Last 1: That’s why the USA has to perpetually wear masks, so that uno nation under Dios is complicit in the masquerade