AUGUST 2010–CAD Trade Balance Down 1 Billion
About 65% of Canadian exports are purchased by the US;
Less Exports= Less Demand= Smaller Growth
Shrinking Economy= Less Jobs
Less Money to Save and to Spend
Businesses cut costs, production, wages, and employment
Workers, businesses, world economies are all affected.
Objective:
Rush into safe currencies until the dust clears and until we see new economic growth and or economical policy reformation.
AUGUST 2010–USD Trade Balance Down 50 Billion
AUGUST 2010–USD New Unemployment Claims
Unemployment is one of the most important Economic indicators to predict the health of one’s Economy. If New unemployment claims are filed, more people continue to lose their full-time employment. Businesses continue to layoff more workers as there is much uncertainty about growth in the next few quarters and possibly longer term.
AUGUST 2010–GBP Retail sales 1.1%
UK Retail sales .7% higher than August forecast. A .4% increase from last month.
While economics still predict weak growth in 2011, consumers are still spending which may have a positive affect on GBP GDP report. If consumers continue to spend and show little resilience to the slowing economy, we may see more investors speculating on pound strength. From a technical perspective, GBP is bearish and the slight rise in Retails Sales can account for increased tourism and summer spending habits. We may see a drastic fall in retial sales after the summer.
Equities World Wide are at a decline and Safe haven currencies still display an upward trend.
