EQUITIES 4 minutes to read

Picking up the Slack

Michael O’Neill

FX Trader, Loonieviews.net

Summary:  What do you get when there is an IPO but not a bunch of bankers involved? Last year it was Spotify (SPOT: NYSE). Today it is Slack. (WORK: NYSE)…


Slack is a workplace messaging system, founded in 2014. It started trading on the NYSE today at $26.00/share, giving it a market cap of $15.5 billion.

It is a direct listing, described as a listing that “allows companies to list their shares directly and begin trading publicly on the NYSE, without issuing new shares via a traditional initial public offering, rather than the expensive, time consuming, bank-fee heavy IPO.

Slack may be big news to some, but for Wall Street, the prospect of two Fed rate cuts beginning next month is the real story. The Fed dropped “patience” in favour of “monitoring,” and noted the resurgence of “crosscurrents” weighing on domestic and global growth. Investors dropped all doubts about the risk of higher rates and bought stocks. The Dow Jones Industrial Average jumped 226 points in early trading while Nasdaq surged 1.17%.

Today’s US economic reports were mixed, second tier and not much of a trading factor. The Philadelphia Fed Manufacturing Index was weaker than forecast while the current account deficit widened. Initial Jobless Claims were 6,000 lower than last week at, 216,000

USDCAD started the New York session as the worst performing currency pair since the New York close. It lost that ranking in early trading as it consolidates the 2.0% losses seen since Tuesday. USDCAD is weighed down by yesterdays better than expected inflation data, which significantly reduced the risks that the Bank of Canada would cut interest rates. WTI oil prices are also fueling the slide. They have climbed from $51.60 on Tuesday to $56,21.  USDCAD broke below key support at 1.3240 which opens the door to further losses to the 1.2990-1.3000 area.
Chart:USDCAD daily. Source: Saxo Bank.
Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.