Cedar Portfolio

Trading Perspectives from Yra – January 21, 2020

Veteran Floor Trader Yra Harris

Major central banks are not likely to do much change to existing monetary policies this week.

There is likely to be a lift in the euro as some outstanding trade issues between Europe and the U.S. get some resolution. Europe will likely see some capital inflows as it moves towards fiscal stimulus, something that is not likely to happen in the U.S..

Bullish on Canada as there has been no QE, entailing no “exit strategy”, and with the currency moderately priced, there is potential for appreciation in the currency relative to the U.S. dollar if energy (and in general commodities) prices stabilize.

There is an eerie calm in the equity markets, based on the robustness of the equity markets – this year is not likely to be complacent, likely to see some volatility in the equity markets during the year.

Keep an eye on the U.S. dollar for direction to the commodity markets.