Canadian Current Account Deficit Q2 - $2.33 billion over consensus | StatsCan Releases Balance of Payments

Just out Canada's Q2 Current account deficit coming in at $15.33 Billion, well over the $13 billion consensus. 

The full report is posted on the StatsCan website: Canada's balance of international payments
Also posted on www.bloomberg.com : Canada Second Quarter Current Account Report Text

 The obvious culprit is the Canadian dollar which has been staying north of the parity mark for some time.

Above is the CADUSD over the same period of time as the Current Account chart above 2007 - Q2 2011.  A definitive break in correlation occurs around Q1 2009, leading to a persistent downward pressure over the past 2 years.



Another interesting chart is Canada's Foreign Direct Investment

Q2 brought us the highest level of Acquisition of Direct Investment Interest since Q1 of 2008.

Consumer Confidence Report - Big Miss - Employment Situation Friday

Consumer Confidence Report

Prior Prior Revised Consensus Consensus Range Actual Consumer Confidence - Level 59.5  59.2  52.5  45.0  to 59.0  44.5

Released on 8/30/2011 10:00:00 AM For Aug, 2011

From Bloomberg : Economic Calender 

As expected in yesterday's post : Big week - A slew of economic data this week will make markets rocky

Consumer Confidence released today at 10am was a huge miss.  The other piece of economic data to watch out for comes in Friday which is the employment situation.

A Recession is looking ever more likely as the economic data has been confirming the stock market plunge over the past couple months.

Big week - A slew of economic data this week will make markets rocky

The big number will be the employment report coming out Friday.
Bloomberg economic calendar has every major event this week listed with general consensus figures.


Last weeks two misses:

	Prior	Consensus	Consensus Range	Actual
Real GDP - Q/Q change - SAAR	1.3 %	1.1 %	0.7 % to 1.6 %	1.0 %
GDP price index - Q/Q change - SAAR	2.3 %	2.3 %	2.3 % to 2.4 %	2.4 %

 Released on 8/26/2011 8:30:00 AM For Q2p

	Prior	Prior Revised	Consensus	Consensus Range	Actual
New Home Sales - Level - SAAR	312 K	300 K	313 K	302 K to 330 K	298 K

 Released on 8/23/2011 10:00:00 AM For Jul, 2011






Zerohedge has a great summery of this weeks events: How The Economy Quietly Entered A Recession On Friday, And Why The GDP Predicts A Sub-Zero Nonfarm Payroll Number

The chart most relevant to the Economic Data August 29 - September 2

S&P500 - Bearish Divergence - and why lower prices are likely

This is just one observation that might provide an indication of the market rolling over here.  However, looking back at 2008, similar topping pattern resulted in a choppy and UP market before the bigger months later.

In the RSI, it is clear that there are lower lows between the 9th and the 22nd.  However, the price action which seems to be in a clear bearish triangle pattern, has higher lowers between the 9th and the 22nd.  This type of divergences is expanded better on other sites:


Specifically: RSI Divergence

Other: 
Bullish & Bearish Divergence Pattern
Divergences, Momentum And Rate Of Change


Ben Bernanke has made a Jackson Hole speech - Full Bernanke Speech
This speech did not announce any form of stimulus, and put ball in the Fiscal court.

Lets see how this markets hold up over the next few weeks.


One thing that is clear --- Volatility is going to be huge over the next few months.

Off Topic:Toronto - Lightning Storm Images Toronto - 8/24/2011 9:30pm EST

These images and video are from the lightning storm that hit Toronto 8/24/2011; the city and surrounding area has been under Tornado watch for most of the evening.

Is the EUR/USD done? Weakness at the top of triangle detected

The past week has seen the EUR/USD not able to break above a triangle that it is stuck within. The apex is coming fast and furious and breaks below the support around 1.425 could result in dramatic selling.  Keep watching this Forex pair for signals to where the overall world economy is headed.  Even though USD looks in the long term to end much lower than it is currently, if the S&P 500 / Dow rolls over, liquidation will give the USD a bid crushing the EURUSD pair.

Silver and gold Start to Move on global unrest, economic turbulence, and increase in inflation

This jump in prices over the past week has been expected by MarketScheming.  Today on market open, silver and gold started to move sharply higher.  This buy pressure can be attributed to a variety of reasons, from Economic woes in US and the EuroZone and Geo-political risk that has increase dramatically over the weekend.

Libya rebels make "final push" into Tripoli

Egypt and Israel strained over killing of police officers in Egypt

Israel continues offensive in Gaza

Increase calls for Syria's president to step down