Nick Batsford, CEO of Tip TV, was alongside Zak Mir, technical analyst for Zak’s Traders Café, when he opened the Tip TV Finance Show to discuss the CAD, global growth and an outlook on single stocks.
CAD yet to price in lift-off?
Batsford highlighted FX Street, who noted that the drop in the USD/CAD this time was more due to the slide in oil rather than the broad based USD rally that we usually see before the Fed begins tightening monetary policy. They continued that the CAD could stay ignorant to post lift-off profit taking in the USD longs and could slide as it prices-in a rate rise in the US.
Single Stock Outlook
Mir outlined RBS (L:RBS), where he believed the target to be 275, the support from May, whilst the stock remains below the 10-DMA.
When concerning OSI Systems Inc (O:OSIS), Mir commented on the double-bottom bear trap, and expressed that the target for the stock is the 200-DMA.
Further technical analysis on AAL, GLEN, NXT, BLT, ANTO, RDSB, LGO and PROX.
Lower for longer
Batsford highlighted Elliott, who outlined that in a report published today, Bill Warlick, senior director of macro credit research at Fitch, warned that should Chinese GDP growth drop to 2.3% in 2016-2017 then global growth would shrink from current expectations of 3.1 to a mere 1.8% in 2018. He also noted that in this case rate hikes in the US or Eurozone would be postponed. “Lower for longer in terms of growth, interest rates and commodity prices could be the defining mantra for this decade for the major advanced economies”.