CADmain (Canadian Dollar - main 2406)
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avatarKon How
2023-07-11

Why does a weaker dollar lead to inflation?

1. Import prices:A weaker USD makes imports more expensive. When the value of the US dollar decreases, it takes more dollars to buy the same amount of goods or services from other countries. As a result, the prices of imported goods and raw materials increase. This increase in import prices can contribute to inflation because businesses may pass on the higher costs to consumers.2. Cost-push inflation:A weaker USD can also lead to cost-push inflation. When the value of the US dollar declines, it becomes more expensive for businesses to purchase imported inputs, such as raw materials or machinery. These higher costs can lead to an increase in production costs, which may be passed on to consumers in the form of higher prices for goods and services.3. Commodity prices:Many commodities, such as
Why does a weaker dollar lead to inflation?
avatarblashblash
2023-05-31
5 mins quick post June is here, and my thesis from Jan is still wrong But I changed my mind in March (Like i said in my March post) The $USD Index(USDindex.FOREX)$   maintains strength Commodity currencies are down. The Canadian loonie weak. $Canadian Dollar - main 2212(CADmain)$   The price of wheat has dropped a lot.  $Wheat - Dec 2023(ZW2312)$   Despite possible El Niño weather. I didnt dare to bet due to conflicting views.  Hindsight 20/20 Will my Jan thesis continue to be wrong Or will it reverse So far seems like same old same old 2% inflation still a myth Personally, it was a good month. Mitsubishi Electric,
avatarexpertrader
2023-02-23

Bitcoin vs. US Dollar: Key Differences and Their Impact on Value

Bitcoin and the US dollar are two different currencies with unique characteristics. Learn about the differences between Bitcoin and the US dollar, how they impact their values, and which may be better for your needs.Courtesy of Pexels.comBitcoin and the US dollar are two very different types of currency with unique characteristics that impact their values.In this article, we will explore the key differences between Bitcoin and the US dollar and how these factors affect their respective values.One of the most significant differences is centralization.Bitcoin is a decentralized currency, meaning that any central authority or government does not control it. On the other hand, the US dollar is centralized, with the Federal Reserve controlling its supply and distribution.This is why t
Bitcoin vs. US Dollar: Key Differences and Their Impact on Value
avatarblashblash
2023-02-18
How to be wrong and still make a profit and a new thesis forMarch In my last post (1/6), i had a thesis to short the USD. $USD/CAD(USDCAD.FOREX)$  $Canadian Dollar - Jun 2023(CAD2306)$    Dollar currency index was at 103.879 and today at 103.88. Basically, 6 weeks and USD has remained the same. There was tremendous volatility. Lucky i was right for about 4 weeks and took 3k off the table. (See photos) The markets have now priced in higher interest rates. I personally find that shocking but i have always lost money when i am overly optimistic. So i was lucky this time around.  There is also an off chance that interest rates may have to go even higher than wall street has pr
avatarblashblash
2023-01-06

Trading commodities and currencies

We find ourselves in a dismal equity market. Bond prices are falling.  Even REITs leverage limits are shaky.  I have reviewed some S-Reit current  leverage. I am concerned. If valuation falls and interest rate rise, what then? The regulatory limit may be triggered. We are finally close to the edge. Perhaps a recovery is near. What should an intreprid investor do? What is the best way if one wish to bet on recovery? My thesis: short the USD and long commodities currencies. More directly, long commodities. Please note that while i am invested, these bets are risky. Currency and commodities future have ruin many. Consider the thesis at your own risk. $Canadian Dollar - Dec 2023(CAD2312)$  
Trading commodities and currencies
avatar机构有话说
2022-11-10

US dollar index suffered the biggest one-day drop in about seven years,what can we expect from it

The US dollar index plunged nearly 2% last Friday, the biggest one-day drop in about seven years. October's non-agricultural data was mixed, and the number of new jobs was higher than expected, but the unemployment rate rose and wage inflation fell, and the labor market showed signs of slowing down. The dollar plummeted after the data was released. Even though the employment data is still strong, some Fed officials still support a small interest rate hike in December. With the decline of the US dollar, other major currencies gained a boost. As for the euro, it is uncertain whether the European Central Bank will continue to support the euro by raising interest rates. The euro may fall to the $0.95 level against the US dollar and remain weak for a longer period of time. The yen and Australia
US dollar index suffered the biggest one-day drop in about seven years,what can we expect from it

How Strong Dollar Changes Company Performance?

Under most circumstances, equity investors are not sensitive to currencies, but since the second half of this year, almost all currencies in the world have depreciated to US dollars, which may "unexpectedly" affect the performance of Q3.Fed's interest rate increase is one reason, major economies except Japan (the Bank of Japan has adopted extensionary monetary policy) are actually following. Why their currencies still clapse?Russia-Ukraine crisis would be another reason, then why commodity currencies like Canadian dollar and Australian dollar can't get rid of the decline neither?Degree of depreciation of major currencies against the US dollar this yearThe pivotal reason&n
How Strong Dollar Changes Company Performance?