Forex Market News - CANADA FX DEBT-C$ strengthens as oil rebounds, bonds fall
Thu Jan 22, 2009 5:07pm EST
* C$ edges up as oil rebounds to settle higher
* Big drop in Nov retail sales pressured market early
* BoC forecast of deep, short recession has little impact
* Bonds hurt by supply concerns due to stimulus spending
By Jennifer Kwan
TORONTO, Jan 22 (Reuters) - The Canadian dollar edged higher against the U.S. currency on Thursday, rebounding from early weakness as the price of oil, a major Canadian export, bounced higher.
The currency was at C$1.2537 to the U.S. dollar, or 79.76 U.S. cents, up from C$1.2558 to the U.S. dollar, or 79.63 U.S. cents, on Wednesday. It hit a low of C$1.2741 to the U.S. dollar, or 78.49 U.S. cents, early in the session after figures showed Canadian retail sales were worse than expected in November [ID:nN22].
In the United States weekly jobless claims rose more than expected, while housing starts and permits fell to a record low in December. [ID:nN22528164]
"We saw some strong risk aversion backed by both the very disappointing U.S. data and Canadian data and, consequently, the Canadian dollar selling off," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
Also moving the currency, the price of oil CLc1 rose to settle at $43.67 a a barrel after earlier falling as low as $40.41. [ID:nSP391920]
Strauss said that any gains in the Canadian dollar are "very tentative and could very easily reverse" not only from day to day but also throughout the day.
The Bank of Canada said on Thursday the economy will contract by an exceptionally sharp 4.8 percent in the first quarter of this year and continue to shrink through mid-year, but that recovery will be swifter than in the past two recessions. [ID:nN22537605]
The report did not have any notable impact on the Canadian currency, market watchers said.
Most Canadian government bond prices followed the U.S. Treasury market lower, due in part to supply concerns. [ID:nN22534628] Earlier, bond prices were higher as money flowed out of equities and into safer havens.
"I think the underlying story here is that U.S. bonds are struggling a bit because of concerns over the supply outlook -- in other words all the borrowing that Washington is going to have to do," said Doug Porter, deputy chief economist at BMO Capital Markets.
"We got an echo of that in Canada today when it was flagged that the budget deficit is going to be C$34 billion in the coming year."
A senior government official said on Thursday that Canada will post a deficit of C$64 billion over the next two fiscal years as it moves to stimulate the flagging economy, but the official said the budget will return to surplus in five years. [ID:N2281505]
The two-year bond dropped 13 Canadian cents to C$102.91 to yield 1.153 percent, while the 10-year bond fell 18 Canadian cents to C$112.22 to yield 2.757 percent.
The 30-year bond fell 10 Canadian cents to yield 3.626 percent. In the United States, the 30-year Treasury yielded 3.2604 percent. (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.