Forex Market News - CANADA FX DEBT-C$ ends lower on weak data, bonds gain
Thu Dec 18, 2008 4:47pm EST
* Canadian dollar streak of gains snapped at three days
* Weak data drags C$ from highest level since Nov. 10
* Bond yields hit record lows in face of equity selloff
By Frank Pingue
TORONTO, Dec 18 (Reuters) - The Canadian dollar's three-day
streak of gains versus the U.S. dollar ended on Thursday as the
latest Canadian data supported calls for more Bank of Canada
interest rate cuts and knocked the currency from a near
Bond prices were all sent higher and yields fell to record
lows as North American equity markets added to their losses and
lured investors back into secure government debt.
The Canadian dollar closed at C$1.2077 to the U.S. dollar,
or 82.80 U.S. cents, down from C$1.1967 to the U.S. dollar, or
83.56 U.S. cents, at Wednesday's close.
Data released on Thursday showed Canadian retail sales fell
by more than expected in October, while the leading indicator
had its biggest fall since 1991.
The reports added to a string of weak Canadian data that
seems to support a growing chorus of market experts who expect
the Bank of Canada to follow last week's 75 basis point
interest rate cut with another cut on Jan. 20.
"Consumers are pulling back the reins quite substantially
and in light of the fact that we just had a rate cut, it does
suggest that we are sort of in for a bumpy ride and the Bank of
Canada might not be finished cutting rates," said Charmaine
Buskas, senior economics strategist at TD Securities.
"In addition, we are seeing general U.S. dollar improvement
simply on safe haven flows, so that also is taking some of the
wind out of the Canadian dollar's sails."
Early in the session, the Canadian dollar rallied to
C$1.1820 to the U.S. dollar, or 84.60 U.S. cents, its highest
level since Nov. 10, due partly to ongoing fallout from the
U.S. Federal Reserve rate cut earlier this week.
But the arrival of the Canadian data set off a slide that
the currency wasn't able to recover from. It fell as low as
C$1.2125 to the U.S. dollar, or 82.47 U.S. cents, late in the
session before bouncing back slightly.
A fall in the price of oil, a key Canadian export, also
weighed on the currency. Oil prices fell by more than 9 percent
as slumping energy demand offset a record output cut announced
this week by the Organization of Petroleum Exporting
BOND PRICES RISE
Canadian bond prices all ended in positive territory given
the mix of weak domestic data, a selloff in equity markets and
a rally in the bigger U.S. Treasury market that often lends
direction to the Canadian market.
Toronto's main stock index, which reopened Thursday after a
technical glitch wiped out Wednesday's session, finished 3.4
percent lower for its lowest closing level in a week.
Bond prices could get another boost early on Friday as the
key consumer prices report for November is due out and expected
to show another drop in prices.
The two-year bond rose 16 Canadian cents to C$102.98 to
yield 1.196 percent. The 10-year rallied 65 Canadian cents to
C$112.02 to yield 2.793 percent.
The yield spread between the two-year and 10-year bond was
at 184 basis points, up from 175 basis points at the previous
The 30-year bond jumped C$1.85 to C$127.85 to yield 3.454
percent. In the United States, the 30-year Treasury yielded
(Editing by Peter Galloway
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.
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.