Forex Market News - Canadian dollar drops to weakest close in six weeks
Mon Jul 28, 2008 4:43pm EDT
* Canadian currency falls for fifth day vs U.S. dollar
* Domestic bond prices rise on safe-haven bid
* No key domestic economic data is due until mid-week
By John McCrank
TORONTO, July 28 (Reuters) - The Canadian dollar slipped to
its weakest close in six weeks against the U.S. dollar on
Monday, extending a slow slide driven by concerns about the
health of the economy of Canada's biggest trading partner.
Domestic bond prices rose on the back of a safe-haven bid
as concerns over the state of the financial industry had
investors buying relatively stable government debt.
The Canadian dollar closed at C$1.0230 to the U.S. dollar,
or 97.75 U.S. cents, down from C$1.0196 to the U.S. dollar, or
98.69 U.S. cents, at Friday's close.
The currency fell to a low of C$1.0245 against the
greenback during the session, its weakest since mid-June. It
has fallen 2.1 percent in the past five days, hampered by a
variety of factors, such as softer oil prices,
weaker-than-expected Canadian data, and some U.S. dollar
"It's been a bit of a dog day for the Canadian dollar all
around, said Shaun Osborne, chief currency strategist at TD
The Canadian dollar ended down pretty much across the
board, more so against majors like the yen and the euro than
against the greenback, which was also hurt on the crosses.
The main factor in Monday's weakness was concern over the
U.S. economy, where Canada sends over 75 percent of its
exports, said Osborne.
"It's still very much the case that the Canadian cart is
hitched to the U.S."
While the Canadian currency was weaker, it is still trading
well within the range it has occupied since falling from its
record high of US$1.1039 in November.
"If we break above C$1.03, in the next little while, it
might suggest that we're seeing a real significant shift in
Canadian dollar sentiment," said Osborne.
The first major Canadian data this week will come on
Wednesday with the industrial product price and raw materials
price indexes for June, due at 8:30 a.m. (1230 GMT). On
Thursday, Statistics Canada will report on gross domestic
product for May, also at 8:30 a.m.
Bond prices rose in response to lower equities, especially
the ongoing weakness in financial shares, which ramped up
demand for government debt.
The Toronto Stock Exchange's financial index was down 2.2
percent on the day, and 5.5 percent over the past three
Compounding market jitters, U.S. regulators over the
weekend seized two small U.S. banks that were struggling under
the burden of the U.S. housing recession and the credit crunch,
selling them to Mutual of Omaha Bank.
Looking forward, the Canadian bond market will likely take
its cues froom the larger U.S. market, said Doug Porter, deputy
chief economist at BMO Capital Markets.
"The Canadian GDP number will be interesting, but it's
going to be completely overshadowed by the slate of crucial
U.S. economic data," he said.
"On Friday we have a wave of U.S. economic numbers, all for
July, where we'll get a very good picture of how the economy is
doing in one day, between employment, ISM, and auto sales."
The two-year bond rose 13 Canadian cents to C$101.21 to
yield 3.066 percent. The 10-year bond climbed 59 Canadian cents
to C$103.87 to yield 3.775 percent.
The yield spread between the two-year and 10-year bond was
70.9 basis points, up from 69.8 basis points.
The 30-year bond jumped 72 Canadian cents to C$114.64 for a
yield of 4.126 percent. In the United States, the 30-year
treasury yielded 4.615 percent.
The three-month when-issued T-bill yielded 2.47 percent,
down from 2.48 percent at the previous close.
(Editing by Frank McGurty)
Thomson Reuters journalists are subject to an 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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Feb 2018
00:00 CN, US- Holiday Tue 20 Feb 2018
00:00 CN- Holiday A 10:00 US- ZEW Survey Wed 21 Feb 2018
00:00 CN- Holiday A All Day flash PMIs A 15:00 US- Existing Homes Sales A 15:30 US- EIA Crude AA 19:00 US- Fed Meeting Minutes Thu 22 Feb 2018 A 09:00 DE- IFO Survey A 09:30 GB- GDP AA 13:30 CA- Retail Sales A 13:30 US- Weekly Jobless Fri 23 Feb 2018 A 10:00 EZ- Final HICP AA 13:30 CA- CPI
John M. Bland, MBA co-founding Partner, Global-View.com
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.