Canada’s strong job data – How is it possible and what are the impacts of current data on currencies and markets?

April 9, 2021

Marc Chandler, Managing Partner at Bannockburn Global ForEx joins me to initially highlight the strong jobs data out of Canada. I ask him how the recent strong data out of Canada is possible considering the continued increase in restrictions, and if this strength can continue. We refer back to the currency markets comparing US Dollar moves to other currencies and the broad averages.

Click here to visit Marc free blog – Marc to Market.

    Apr 09, 2021 09:46 PM
    Apr 09, 2021 09:38 PM

    What The US and Canada need is to cut down the cost of running the Government by cheeseparing the public debt, reducing the public debt, and reducing federal taxes, aiding those with small incomes and large incomes. By lifting the tax burdens of the rich you will benefit the whole country. People do not need a man of action in The Government, they need as little government as possible. Prosperity only comes when you support business and not social welfare programs. DT

      Apr 10, 2021 10:31 AM

      The writing is on the wall.. There going to print there grandchildren’s lives away. All these imbecile criminal politicians who don’t work for the people should all be prosecuted for crimes of humanity and complete total destruction with no remorse for there actions.

      Keynesian 101 economics for you..

      It’s gets better, when the shit really hits the fan high teck has everything in place. They will trade off debt to the idiot/sheep I’m exchange for a check=Cuban style monthly allowance= rations

      To be a sheep is to not know the Prophecy and to know the Prophecy is to educate these sheep and in quick succession

      Apr 10, 2021 10:15 PM

      Audit the Fed and the Exchange Stabilization Fund. Find out where the money really went and stop it. Don’t just kick the dog.

    Apr 09, 2021 09:15 PM

    3.000 years of human experience have repeatedly demonstrated that at somewhere around taxation of 10% or greater, the growth of economies decrease.
    For much of history the ruling groups have tended to be happy to keep taxation at 10% or lower in times of peace. However, now, perhaps as an indication that end-times are near, our greedy “professional” politicians are corrupt and focused only on seeking and retaining power.
    A pity they did not study the French revolution, and realize heads are not permanently attached to a body.

      Apr 09, 2021 09:42 PM

      That is a fascinating statistic.

      Apr 10, 2021 10:18 AM

      That ties into the RULE OF 72…….interest rates and time……..anything over 12% interest or 7 yrs pay back fall into the impossible to repay…. the JUBILEE FACTOR…. 🙂

    Apr 09, 2021 09:07 PM

    Glen……left you a message….a fe.sections back….

    Apr 09, 2021 09:52 PM
    Apr 09, 2021 09:44 PM

    Biden achieves status of BONE-HEAD

    Of course, he doesn’t realize he’s senile…….the bone-head.

    Apr 09, 2021 09:10 PM
    Apr 09, 2021 09:13 PM

    The reporter did not get it quite right:

    Pennsylvania is finally burying its dead voters.

    Apr 09, 2021 09:17 PM

    Sorry….I just realized I was posting in the wrong section.

    Apr 10, 2021 10:41 AM

    This meme is going around on Twitter, pointing out the disconnect in Main Street economy versus the Wall Street markets. A tragically comic portrait of the 2021 reality.×900

      Apr 10, 2021 10:45 AM

      Ex, that is the buzzword in home renovations these days, “Open Concept Living”. DT

        Apr 10, 2021 10:22 AM

        Haha! Good one DT.

    Apr 10, 2021 10:18 AM

    These days there is no middle class but when they manage to realize that the middle class was responsible for most of the buying in America that kept the factories roaring and the prosperity bandwagon rolling we will see a huge surge in national prosperity. Following that will be a big demand for base metals that will push these tepid prices way up, and yes the middle class will see the importance of buying physical gold and silver once again. The prices of precious metal will skyrocket. DT

    Apr 10, 2021 10:00 AM

    “Lobo Tiggre, of The Independent Speculator, is long-term bullish on gold, but said that it is nonetheless important to consider four potential bear cases.”

    Kitco News – Apr 9, 2021

    0:00​ – Gold’s base case
    5:40​ – Bear case #1: Bitcoin eating gold’s lunch
    9:40​ – Bear case #2: Deflation
    17:26​ – Bear case #3: Manipulation
    21:29​ – Bear case: #4: No safe-haven demand

      Apr 10, 2021 10:14 AM

      Good discussion of issues. Re: manipulation. Lobo describes two possible reasons for manipulation as being somewhat independent. First that Bullion Banks have a need to protect short positions; and second, governments have a need to protect the perception of the value of fiat currencies. I would assert that both occur simultaneous with Central Banking can be the money source for the Bullion Banks. Complicit in different agendas achieved by joint activity. I also agree with Lobo that not being an investor during manipulation is not an option, just a limitation.

        Apr 10, 2021 10:02 AM

        Lobo made some very interesting points about how manipulation isn’t the overall boogeyman that many decry when the markets go down, but did cover the ways in which, of course, larger institutions and larger investors do push markets around to fit their prerogatives, like the bullion banks protecting short positions so they don’t get wiped out, etc…

        Personally, I just assume, over shorter time periods that there are large institutions, banks, and hedge funds trying to push all markets arounds to their advantage, but there are also all the other institutions, hedge funds, and retail investors also pushing things to their narrative, and at the end of the day, the longer term trends will overpower any one group and set the overall direction. As Lobo mentioned, there aren’t enough manipulative forces that could stop the rise of the metals in 1980, or from 2001-2007, or from 2009-2011, or from 2016 to present, (after gold just made an all time high last August at $2089). They have tools like immediately raising the Crimex margin requirements every time the metal runs, and there are all the shenanigans with how the fix was calculated each day, or early morning dumps to hit the price in thinly traded markets, etc… however ultimately, we as investors must trade the pricing action as it comes, and react accordingly. This is the value in looking at the macro trends developing, and then using technical analysis to spot advantageous probabilistic risk/reward set-ups for entries and exits.

        Apr 10, 2021 10:42 PM

        Lobo Tigre is one of the most interesting people who I have the pleasure of calling a friend. Actually he and his entire family.

      Apr 10, 2021 10:35 AM

      Hey Ex, those are all interesting points but I believe Deflation and No safe haven demand are the two most likely. Bitcoin will get squashed by the government when they decide it’s time and manipulation is meaningless for me. DT

        Apr 10, 2021 10:11 AM

        I can understand the narrative and reasoning some have for a deflationary route that sucks everything down a black hole of falling prices, a derivative blowup market meltdown, with a rising dollar, and malaise for years where everything struggles, but it just seems far less likely to me, than the coming inflationary route, where the central banks eventually cry uncle raising rates to keep up with rising inflation but staying constantly “behind the curve”, printing to infinity and beyond to paper over the threat of any deflation, and paired with a stagnation backdrop for the real economy. I just don’t see the Dollar rallying up to 120-130 again, but do think the mid to low 80s for the greenback seem quite realistic, as soon as this recent pop higher has run it’s course. I see the PetroDollar as doomed, and a push for initially national digital currencies, but then eventually the globalist dream of one centralized digital global currency to rule them all “and in the darkness bind them.” Just like the “one ring to rule them all” concept in Lord of the Rings.

          Apr 10, 2021 10:10 PM

          Ex, I don’t know whether we can compare what is happening now to the deflationary depression of the 1930’s. There was serious inflation in 1927 and it was far more serious in 1929. We have a lot of inflation baked into the cake in Canada and have had for thirteen years or more. The Central Bankers in The United States and Canada have been pumping serious amounts of money into the system for at least 13 years. They are afraid of deflation and they believe The 30’s Depression could have been averted if The Bankers had liquified The Markets and the economy at that time. The total of broker’s loans today could be well into the trillions of dollars. The higher they go, the harder they fall. People and The Banks believe that every crash has been followed by a recovery. Speculative memory is short term. If you sell you only have to wait for the next crash and buy in again. But as you pointed out and we have seen the real economy is divorced from Wall Street and this can’t go on no matter how much money they print. The more money they print the less effect it has on the economy and the more chance we have of seeing a Deflationary Depression because the value of their fiat will be zero and the game can’t be saved by more money printing. DT

    Apr 10, 2021 10:52 AM

    I recently watched a program on PBS about Einstein and the quantum theory, all I realized about his theory is that I don’t think I will ever be able to understand life. It was like looking at a vast field of fog. No wonder they have a bar at The University Of Toronto called Ein Stein! DT

      Apr 10, 2021 10:42 AM

      I took Intro Philosophy in college and everyone had to make a presentation on an assigned subject. The Professor was grueling with his questions. I got assigned Quantum Theory. I went to all my science major friends and had them explain it…over and over. I gave the presentation and was braced for attack as the Professor asked questions first. He says looking at the rest of the class “any questions?”. Crickets. I don’t think the Profesdor understood it either.

        Apr 10, 2021 10:52 AM

        David, it’s one of those intangibles like Freedom, people are always complaining about their loss of freedom but it’s meaningless unless you know what to do with it. DT

      Apr 10, 2021 10:15 PM

      Big muon news this week. They don’t behave properly–as per quantum mechanics–when smashed in particle accelerator.