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Elliott Wave Live: US Inflation Data Ready To Break The USD Range

Elliott Wave Live: US Inflation Data Ready To Break The USD Range

Globe and Mail11-02-2025
I hope you had a great weekend and are ready for a new trading week, which could bring some interesting volatility. As you know, Trump is planning to announce new tariffs today, which could once again shake the market. However, it's possible that at some point, markets will become less reactive to tariffs, as they know he's serious about them, so this may not be a huge surprise.
One of the key events this week will be the US CPI data on Wednesday, with expectations for no change at 2.9%. I believe this is another piece of the puzzle that may help provide a clearer picture of what the Fed could do next with rates, especially after Friday's mixed NFP data, where fewer jobs were created but unemployment fell to 4%.
From an Elliott wave perspective, the Dollar Index still appears poised for more weakness after the current rebound, which is unfolding in three legs. Right now, the price is testing the first key resistance around 108.30. If the price remains sideways or even pushes toward the higher resistance near 109, there's a chance we could see a bullish triangle remain in play until Wednesday's CPI report, which could finally trigger a major breakout from current dollar's range, hopefully to the downside.
Grega
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Trump announces trade deal with Japan that would see 15% tariff on all goods
Trump announces trade deal with Japan that would see 15% tariff on all goods

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Trump announces trade deal with Japan that would see 15% tariff on all goods

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Keep it up, nasty Canadians
Keep it up, nasty Canadians

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Keep it up, nasty Canadians

When four Canada-friendly, non-MAGA U.S. senators came to Ottawa to meet Prime Minister Mark Carney this week, Oregon's Ron Wyden advised Canada to de-escalate trade tensions by quickly making permanent changes to tax laws the U.S. doesn't like. But elsewhere, Donald Trump's ambassador to Canada, Pete Hoekstra, said Canadians are 'mean and nasty' because they took U.S. liquor off store shelves and cancelled vacations south of the border. So which one do you think worries Mr. Trump more? It's not Canadian tax laws, or retaliatory tariffs – those are the things that the U.S. can push back on with threats of their own. It's the stuff Mr. Hoekstra, exhibiting a mind-boggling lack of self-awareness, calls 'nasty.' It is Canadian customers rejecting U.S. products. There are talks on now to reach some kind of trade deal with Mr. Trump's administration, with a supposed Aug. 1 deadline. But even if there is a deal, you can bet it won't be the end of trade disputes with Mr. Trump. The nasty things that Mr. Hoekstra complains about could be the best tool that Canada has. The U.S. President likes to brag that he's holding the cards, and there is truth to that, especially when it comes to government-to-government negotiations. The U.S. has the bigger market and an economy less dependent on trade. That's why Mr. Carney gave in last month and paused collection of Canada's digital services tax (DST) when Mr. Trump broke off trade talks, citing the levy. It's why Ontario Premier Doug Ford caved on his March threat to add a 25-per-cent surcharge to electricity, after Mr. Trump said he'd retaliate by raising steel tariffs to 50 per cent. (Mr. Trump later did that, anyway.) On Tuesday, Mr. Ford called for 'dollar-for-dollar' retaliatory tariffs against the U.S., but other premiers were not so gung-ho. Yet the premiers – and Mr. Carney – did encourage the consumer boycotts: 'Keep it up,' British Columbia Premier David Eby said. Good advice. And there is still zeal for it among Canadians. Tony Keller: Trump's trade policy is completely nonsensical, and entirely clear 'We're not getting as much coverage in the Canadian media, but I keep my eyes on what the U.S. press is saying, and they are starting to really notice massive drops,' said former New Democratic MP Charlie Angus, now a 'Resistance' ringleader who writes Substack essays and speaks at boycott rallies. U.S. alcohol sales have been hit. American exports of food to Canada amounted to US$28-billion in 2024, but Mr. Angus noted that some grocery stores pulled many U.S. products from their shelves. He argued that ordinary Canadians have more tools to pressure the U.S. than political leaders. Canadians expected Mark Carney to be a tough-talking, 'wartime' prime minister, Mr. Angus said, but 'we haven't seen that.' But he also said he realizes Mr. Carney is trying to navigate the complexities of 'dealing with a gangster regime' in Washington. 'This is where the power of the boycott is a unique political lever, because Mark Carney or Doug Ford or Daniel Smith can't tell people to stop the boycott,' Mr. Angus said. The senators who met Mr. Carney on Monday – three Democrats and Alaska Republican Lisa Murkowski, a moderate swing vote in the U.S. Senate – declared their friendship and conceded that the boycott has had an impact. 'We are seeing a decrease in the travel from Canadians to Nevada,' Nevada Senator Catherine Cortez Masto said. New Hampshire Senator Maggie Hassan even said, 'We miss you.' That's nice. The senators had suggestions on how to settle the issue, such as Canada permanently rescinding the DST. But they didn't seem to include living up to past U.S. trade commitments – or stopping aggressive U.S. attacks on Canada's economy. Mr. Trump, after all, has said he wants the U.S. to imposes tariffs on Canadian autos so that it becomes uneconomical to make them in this country. That's pretty nasty. It isn't easy for Canadian political leaders to counter that kind of strong-arming. But Canadian consumers can have an impact as long as they keep being nasty.

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