For the second time in 25 years, Canadian policy rates fell in line with New Zealand’s. This last happened from 1998 to 1999, when NZD/CAD subsequently depreciated 26%. However, today Canada’s and New Zealand’s…
Highlights We always strive to develop new analytical methods to complement our focus on judging currencies based on global liquidity conditions and the business cycle. This week, we introduce a ranking method based strictly on…
After years of commodity booms and strong domestic demand supported by rising household wealth, the Canadian and Australian manufacturing sectors have been greatly diminished. Much capacity has vanished, and it will be difficult…
Until now, very low global interest rates have kept the Canadian and Australian housing bubbles afloat, but rising U.S. interest rates are now putting upward pressure on mortgage rates in both Canada and Australia. This simply…
Few would care about the systemic risk created by elevated house prices if debt loads were small. However, in both countries, household indebtedness makes Americans circa 2007 look like a frugal bunch. In Canada, household debt…
Highlights We recently upgraded our recommended investment stance on global corporate bonds to overweight on a tactical (3 to 6 months) basis.1 Feature That change was mostly based on our view that global financial conditions had…
Two of the Canadian industries that witnessed contracting jobs in December were construction and finance. This is important because employment trends in construction, finance, and real estate tend to provide good signals for…
Unlike the very strong labor market conditions seen in the U.S. last December, the Canadian data came in slightly below expectations. Investors anticipated 10,000 Canadian jobs to be created in December against actual data of…