Forex Market News - Canadian dollar pushes higher after upbeat data
Tue Aug 12, 2008 4:48pm EDT
* Canadian dollar snaps seven-session skid
* Trade data meets market expectations
* Bonds prices boosted by renewed credit concerns
By Frank Pingue
TORONTO, Aug 12 (Reuters) - The Canadian dollar finished
higher against the U.S. dollar on Tuesday, snapping a
seven-session losing skid as data showed Canada's trade surplus
widened in June thanks to the commodity price boom.
Domestic bond prices finished higher across the curve as
concerns about the U.S. financial crisis shook North American
equities and triggered demand for more secure investments like
The Canadian dollar closed at C$1.0628 to the U.S. dollar,
or 94.09 U.S. cents, up from C$1.0693 to the U.S. dollar, or
93.52 U.S. cents, at Monday's close.
The bulk of the currency's gains came early in the session
and right after data showed Canada's trade surplus rose in
June, a positive for an economy that has been flirting with a
recession in recent months.
Another reason for the Canadian dollar's gain was a weaker
U.S. dollar as the greenback's recent rally finally gave way
profit-taking. Also, long-term bond yields moved slightly in
favor of the Canadian dollar.
The Canadian currency's sudden rally surprised some experts
since the domestic data was merely in line with expectations
and came alongside a report that showed the U.S. trade deficit
unexpectedly shrank in June.
"The Canadian data were good as well but my sense is they
pretty well just met expectations, so it was a bit surprising
that the Canadian dollar actually strengthened against the U.S.
dollar after the two trade reports," said Sal Guatieri, senior
economist at BMO Capital Markets.
"Plus, the U.S. trade report was exceptionally strong and I
thought that would have given the U.S. dollar a good kick
because it implies a fairly hefty upward revision to
second-quarter GDP growth."
Despite the rally, the Canadian dollar is down considerably
since it finally fell through a key technical level last week
after having been stuck in a tight range around parity with the
greenback since last November.
At one point in the session the Canadian dollar dropped to
C$1.0699 to the U.S. dollar, or 93.47 U.S.. cents, which marked
its lowest level since Aug. 17.
The latest economic data was unlikely to spark a dramatic
turnaround in the Canadian dollar since it followed a number of
key reports in recent weeks that have missed expectations and
contributed to a slew of lowered forecasts for the currency.
"I guess in a relative sense we might see some improvement
on the data front, which could support our currency," said
Guatieri, "But our general sense is the Canadian dollar will
likely weaken over the next year or so."
BOND PRICES RISE
Bond prices all finished higher given fresh credit worries
after news late on Monday that said JPMorgan Chase & Co had
been hurt by credit and mortgage market turmoil.
The bank said it had taken $1.5 billion in writedowns since
July, which weighed on U.S. stocks, and to a lesser extent the
Toronto Stock Exchange's main index, and convinced dealers to
snap up less risky assets like debt.
"We saw safe-having buying in (bonds) because of credit
market concerns following JP Morgan's writedown announcement,"
The two-year bond rose 4 Canadian cents to C$101.77 to
yield 2.731 percent. The 10-year bond climbed 32 Canadian cents
to C$105.33 to yield 3.599 percent.
The yield spread between the two-year and 10-year bond was
107 basis points, up from 105 basis points at the previous
The 30-year bond added 39 Canadian cent to C$116.39 for a
yield of 4.032 percent. In the United States, the 30-year
treasury yielded 4.544 percent.
The three-month when-issued T-bill yielded 2.50 percent, up
from 2.49 percent at the previous close.
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."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
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.