Forex Market News - CANADA FX DEBT-C$ falls on drop in oil, political uncertainty
Mon Dec 1, 2008 5:20pm EST
*Canadian dollar falls 0.5 percent against the greenback
*A 9 percent slide in oil prices encouraged decline
*Political instability in Ottawa also undermines currency
*Data showing stronger-than-expected GDP has little impact
*Bonds rally on safe-haven bid as stocks tumble
By John McCrank
TORONTO, Dec 1 (Reuters) - Canada's dollar fell against the
U.S. dollar on Monday as a drop in oil prices combined with
political uncertainty and a bleak economic outlook to outweigh
a report showing Canada's economy registered its strongest
growth in a year in the third quarter.
Canadian bond prices rallied as investors parked their cash
in safe-haven government debt in response to a steep drop in
the equity markets.
The Canadian dollar ended the North American session down
0.5 percent against the U.S. dollar, at C$1.2451, or 80.31 U.S.
cents. That's down from C$1.2370 to the U.S. dollar, or 80.70
U.S. cents, at Friday's close.
It was the currency's weakest close versus the greenback in
10 days and may signal more weakness to come.
"If we look at the sharp selloff in the commodity markets
... and the very sharp selloff in equity markets ... one would
expect the currency to be under even more severe pressure,"
said Matthew Strauss, senior currency strategist at RBC Capital
The price of U.S. crude oil CLc1 slid 9 percent to C$49
dollars a barrel after OPEC put off a decision on new supply
cuts until later in the month. Oil hit a record high of over
$147 in July, but the slowing global economy has hurt demand.
Canada is a major oil producer and its currency is often
influenced by moves in its price.
Political uncertainty in Canada has also taken a toll on
the currency, analysts said.
Canada's three opposition parties have agreed to form a
coalition in an attempt to take power from the minority
Conservative government. The opposition said the government
must go because it has failed to take significant action on the
economic crisis. [See ID:nN01497021]
That political uncertainty helped overshadow a report
showing Canada's gross domestic product bucked the negative
trend of most other countries in the world in the third
quarter. Canada's economy grew 1.3 percent on an annualized
basis in the quarter, beating the market forecast of 1.1
While the headline number was solid, the details of the
report showed that domestic spending is slowing, and nearly all
analysts believe Canada's economy will weaken moving forward.
Canadian bonds rallied in response to plunging North
American stock markets, which increased the allure of
safe-haven government debt, said Eric Lascelles, chief
economics and rates strategist at TD Securities.
The Toronto Stock Exchange's main index ended Monday's
session down 9.3 percent, or 864.41 points, largely in response
to the drop in the price of oil. The TSX is heavily weighted
toward commodity stocks.
The two-year bond rose 20 Canadian cents to C$102.26 to
yield 1.594 percent. The 10-year bond gained C$1.35 to C$108.85
to yield 3.163 percent.
The yield spread between the two-year and 10-year bond was
171 basis points, down from 179 at the previous close.
The 30-year bond climbed C$2.80 to C$121.55 to yield 3.761
percent. In the United States, the 30-year Treasury yielded
(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.