We Just Lost a Legend, RIP.

GM. This is Currencies & Coffee – where we read the markets, so you don't have to. You're welcome 😄.

Here’s what we have covered today:

☕ RBA, BOC Rate Chatter, NFP Drama.

☕ RIP Legendary Investor Charlie Mungar

☕ This Weeks Trade Setups.

🗞️Movers & Shakers🗞️

Ready for a quick rundown of the significant financial events coming up this week?

We're keeping it simple and straightforward so you know what to look out for.

Here's the scoop:

• RBA’s Policy Decision (Dec 6, 3:30 am GMT): Last month, the Reserve Bank of Australia raised interest rates to 4.35%, and it looks like they might pause for a bit. If they stick to this rate, it could mean the Aussie dollar stays steady. But if they throw a curveball with another hike, the Aussie dollar could jump.
• BOC’s Policy Decision (Dec 6, 3:00 pm GMT): The Bank of Canada is expected to keep its overnight rate at 5.00%. If they do, the Canadian dollar might not see much action. But any hints of future rate changes could stir things up.
• NFP-Related Reports: The U.S. labour market is in the spotlight this week. If the non-farm payrolls and other job reports show strong numbers, it could mean the Fed might keep rates higher for longer, potentially boosting the US dollar. Watch out for the ISM services PMI (Dec 5, 3:00 pm GMT), ADP report (Dec 6, 1:15 pm GMT), JOLTS job openings report (Dec 5, 3:00 pm GMT), and weekly initial jobless claims (Dec 7, 1:30 am GMT) for early clues.
• Japan’s CPI (Dec 7, 11:30 pm GMT): Japan's inflation data is coming out, and if it shows a rise, it could mean the Japanese yen gets stronger. This is especially interesting given the recent talk about the Bank of Japan possibly ending negative interest rates.

RIP Legendary Investor Charlie Mungar

The investment world mourns the loss of Charlie Munger, a legendary figure in the realm of finance, who passed away at the age of 99.

Munger's Impact on Investing

Charlie Munger, often seen as the strategic force behind Warren Buffett's success, joined Berkshire Hathaway as vice chairman in 1978, a pivotal move that came thirteen years after he first met Buffett. More than just a lawyer, Munger's profound insights and strategic thinking were instrumental in steering Buffett's investment approach. It was Munger who influenced Buffett to shift from acquiring decent companies at low prices to investing in outstanding companies at fair prices. This strategic pivot was a cornerstone in Berkshire's remarkable average annual gains of 20% from 1965 to 2022, significantly outpacing the S&P 500 Index. Munger's personal fortune, as estimated by Forbes, was around $2.6 billion, a testament to his investment acumen.

Munger's Investment Philosophy

Munger was revered not just for his investment success but also for his straightforward, practical, and timeless investing advice. He championed the importance of continuous learning and believed in developing a reliable investment strategy and adhering to it. For Munger, this meant choosing top-tier companies at reasonable prices, employing careful logic, and a deep understanding of business operations.

A Balanced Approach to Risk

Munger's cautious investment style had its trade-offs. He steered clear of early investments in tech giants like Microsoft and Google, but this same caution helped him avoid the pitfalls of the dot-com bubble and over-investing during market highs. Munger's legacy is built on classic investments like Coca-Cola, American Express, and GEICO rather than fleeting market trends.

Remembering Charlie Munger

As we reflect on Charlie Munger's life and contributions, his lessons in value investing, strategic thinking, and disciplined decision-making continue to resonate with investors worldwide. His passing marks the end of an era but also serves as a reminder of the enduring principles that underpin successful investing.

SIP,  LAUGH,  TRADE 😁

📈LATTE LINEUP📈

We have commenced the month of December; this is usually a month of lower volumes in the market and a month where my trading activity reduces a lot.

I have shared a few setups for the week to keep an eye on. I suggest trading at half your usual risk and being extremely selective on your setups.

-USDCAD-

HTF (12-HR): The price recently broke the previous support to the downside, forming a new lower low on the Higher Time Frame (HTF). I'll be waiting for a retracement to retest the previous support as resistance.

We have two zones of interest here: the 50% Fibb level and the 61.8% level. Let's wait for the emergence of rejection or engulfing candlesticks from the zones to tell us when the sellers are back. The price still needs to play out before moving to the Lower Time Frame (LTF) for an entry.

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LTF (1-HR): Once we have our HTF confirmations, on the 1-hr, we want to see a shift in market structure from higher highs and higher lows to lower lows and lower highs. Once we have a break and retest of an LTF support confirmed by bearish rejection or engulfing candles, I'll look to take a sell position. My stop loss will go above the previous highs and target the previous HTF low.