Forex Market News - Canadian dollar follows oil prices to higher close
Mon Apr 28, 2008 5:04pm EDT
By Frank Pingue
TORONTO (Reuters) - The Canadian dollar finished higher versus the U.S. dollar on Monday, helped up by record high oil prices and a growing view that the worst of the credit crisis may be over.
Canadian bond prices closed higher across the curve as investors decided to revisit more secure assets following a string of losses in recent weeks that left prices at attractive levels.
The Canadian dollar closed at C$1.0127 to the U.S. dollar, or 98.75 U.S. cents, up from C$1.0163 to the U.S. dollar, or 98.40 U.S. cents, at Friday's close.
A rise in oil prices to a record near $120 a barrel helped lift the commodity-linked Canadian dollar to C$1.0067 to the U.S. dollar, or 99.33 U.S. cents, overnight before it backed off during the first half of the North American session.
And while considerable stress continues to hinder credit markets, expectations that the U.S. Federal Reserve will follow a slew of hefty rate cuts with a smaller 25-basis-point rate cut this week has helped lessen some of the concerns.
"There's a sense that the worst might be over for the U.S. economy, which tends to benefit (the Canadian dollar) relative to the crosses and sometimes even against the U.S. dollar," said Sal Guatieri, senior economist at BMO Capital Markets.
"The U.S. dollar was supported by a sense that the Fed will likely hint at a pause in its easing cycle ... so basically we saw risk aversion trades get unwound and that tends to benefit the second tier currencies like the loonie."
The Fed will make a decision on interest rates following a two-day policy meeting that ends on Wednesday, and plenty of attention will be directed to its statement to see if it signals an end to its latest easing cycle.
Canadian data due this week includes the February gross domestic product report on Wednesday, along with industrial product price and raw materials price indexes for March.
BONDS ALL EDGE HIGHER
Canadian bond prices reclaimed some steep losses suffered in recent weeks when talk of rising global inflation and the idea that the Fed's aggressive rate cut campaign may soon be over lessened appetite for secure assets.
But dealers crept back into government debt during the latest session on the notion that some of the recent concerns may have been overdone and had resulted in sharper losses than had been warranted.
"Just been a groundswell of support for riskier assets in the last few weeks ... and I think that's what has explained the rout," said Guatieri. "So today we saw a bit of payback."
The two-year bond rose 10 Canadian cents to C$101.77 to yield 2.870 percent. The 10-year bond climbed 24 Canadian cents to C$102.12 to yield 3.721 percent.
The yield spread between the two- and 10-year bonds was 85.1 basis points, up from 83.2 points at the previous close.
The 30-year bond added 31 Canadian cents to C$113.43 to yield 4.196 percent. In the United States, the 30-year Treasury yielded 4.559 percent.
The three-month when-issued T-bill yielded 2.61 percent, up from 2.60 percent at the previous close.
Reuters journalists are subject to the Reuters Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 10 Sep 2018 AA 08:30 GB- GDP, Trade, Output Tue 11 Sep 2018 AA 08:30 GB- Employment Decision A 09:00 DE- ZEW Survey Wed 12 Sep 2018 A 12:30 US- PPI A 14:30 US- EIA Crude A 18:00 US- Beige Book Thu 13 Sep 2018 A 1:30 AU- Employment AA 11:00 GB- Bank of England Decision AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless AA 12:30 US- CPI Fri 14 Sep 2018 A 08:30 GB- GDP AA 12:30 US- Retail Sales A 13:15 US- Industrial Production AA 14:00 US- prelim University of Michigan
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.