Forex Outlook: Canadian Dollar Bears and Doves

It is no secret that the CAD has been sliding. Amidst a surprise 25 bps cut at the last Bank of Canada (BOC) meeting (July 15th), weakness in the commodity markets, a strengthening USD, and a weaker than anticipated CAD GDP reading have all formed the backdrop for continued weakness in the CAD (strength in … Read moreForex Outlook: Canadian Dollar Bears and Doves

Research Focal Points: King TUT The 2s Over 10s US Treasury Spread Trade Outlook

The Fed is expected to begin its process of normalizing rates this December. Recent commentary from Fed’s Bullard (hawk), who is a non-voting member until he joins the member rotation in 2016, alludes to a greater than 50% chance of a hike as early as Sep. Getting short the TUT (A yield spread constructed by … Read moreResearch Focal Points: King TUT The 2s Over 10s US Treasury Spread Trade Outlook

Research Focal Points: The Fed’s Interest Rate Glide Path

The Fed’s Janet Yellen delivered her semi-annual testimony this week with a hawkish tone, signaling that rates need to “normalize” sooner rather than later. The Fed’s timetable is certainly not carved in stone. Yellen explained that the Fed is prepared to take their first step towards policy normalization, “…at some point during 2015”. The Sep … Read moreResearch Focal Points: The Fed’s Interest Rate Glide Path