Forex Market News - Canadian dollar falls on global growth concerns
Wed May 7, 2008 4:32pm EDT
By John McCrank
TORONTO (Reuters) - The Canadian dollar fell 0.4 percent against the U.S. dollar on Wednesday as investors worried that record high oil prices would begin to crimp global economic growth.
Canadian bond prices were higher as lower equity prices increased the safe-haven appeal of government debt.
The Canadian dollar closed at C$1.0070 to the U.S. dollar, or 99.30 U.S. cents, down from C$1.0029 to the U.S. dollar, or 99.71 U.S. cents, at Tuesday's close.
"The Canadian bulls are having second thoughts just blindly following the oil price higher," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
U.S. crude oil CLc1 hit a record $123.75 a barrel during the session, more than double what it cost a year ago. See ID:nN0725103
Higher oil prices are often a positive for the Canadian dollar as Canada is a major oil producer and exporter, but the new daily highs for the commodity are beginning to make investors nervous, Strauss said.
"It seems that this increased concern that these record high oil prices might weigh on U.S. and global growth is reflected in equity prices."
The main index on the Toronto Stock Exchange, which is heavily weighted with energy company shares, closed down 42.77 points, while New York's Dow Jones industrial average ended down 206.48 points.
Movements in the Canadian dollar are likely to be muted ahead of the key Canadian jobs report for April due out on Friday. The market is looking for the economy to have added 10,000 jobs, but the range of forecasts is from a loss of 10,000 jobs to a gain of 30,000 jobs."
Canadian bond prices were modestly higher in response to the lower equities, but the real story was how much the Canadian market underperformed the U.S. Treasury market, said Eric Lascelles, chief economics and rates strategist at TD Securities.
For the past couple of weeks, the Canadian market has been the outperformer, but it may have gone too far.
"It had gotten to absurd levels," Lascelles said.
"The Canadian five-year yield was lower than the U.S. five-year yield, even though no one in their right mind could argue that Canadian central bank rates could fall below U.S central bank rates."
The next piece of Canadian data due out is April housing starts on Thursday.
The two-year bond rose 2 Canadian cents to C$101.89 to yield 2.800 percent. The 10-year bond climbed 10 Canadian cents to C$102.50 to yield 3.672 percent.
The yield spread between the two- and 10-year bonds was 86.8 basis points, down from 87.3 at the previous close.
The 30-year bond added 20 Canadian cents to C$114.00 to yield 4.165 percent. In the United States, the 30-year Treasury yielded 4.603 percent.
The three-month when-issued T-bill yielded 2.60 percent, up from 2.59 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.