Forex Market News - CANADA FX DEBT-C$ weaker as oil drops, investors shun risk
Thu Jan 29, 2009 4:46pm EST
* C$ weaker as oil down to $41.44 a barrel
* Bonds largely lower as supply concerns persist
By Jennifer Kwan
TORONTO, Jan 29 (Reuters) - Canada's dollar weakened against the greenback on Thursday as the price of oil dropped and a batch of bleak U.S. economic data kept investors away from riskier assets.
A fresh wave of dismal U.S. data, including labor market and housing figures, added to the economic gloom and rattled investor confidence, sending North American equity markets lower. [ID:nN29272638]
This, in turn, helped to prop up the U.S. dollar as investors move to safer havens, said Millan Mulraine, economics strategist at TD Securities.
"When all the boats are leaking you want to jump to the biggest boat," he said.
The Canadian dollar finished at C$1.2233 to the U.S. dollar, or 81.75 U.S. cents, down from Wednesday's close of C$1.2152 to the U.S. dollar, or 82.29 U.S. cents.
The weakness in the Canadian currency and stocks followed a statement from the Federal Reserve on Wednesday which pointed to a grim outlook, said George Davis, chief technical strategist at RBC Capital Markets.
"It sent risk aversion higher because their economic outlook was very bleak," said Davis. "The market was expecting a little bit more upbeat view, or certainly not as pessimistic as it was."
"We've seen people get out of equity markets and reduce their risk profile on those statements," he added. "In that type of environment we tend to see the Canadian dollar weaken."
As well, the price of oil CLc1 fell 72 cents to settle at $41.44 a barrel, as economic gloom hit. [ID:nSP148153]
Despite the weakness, the Canadian currency earlier traded in a relatively tight range on Thursday as the market digested events that took place this week, said Michael Gregory, senior economist at BMO Capital Markets.
These included Tuesday's release of the federal budget that promised billions in tax cuts and spending and a speech the same day from Bank of Canada Governor Mark Carney, who tried to allay concerns about deflation.
Canadian bond prices were lower across the curve, following a big slide in the U.S. Treasury market, as the broader concern of swelling supply weighed.
The overall tone in bond markets "remains a little nervous because of increased supply tied to deficits," said Mark Chandler, fixed-income strategist RBC Capital Markets.
In unveiling its budget on Tuesday, the federal government estimated it will run a C$85 billion budget deficit over five years.
In Canada, data on Thursday showed that industrial product prices and raw materials prices dropped [ID:nN29397459] but the reading had a negligible impact on the market.
The two-year bond fell 5 Canadian cents to C$102.44 to yield 1.393 percent, while the 10-year bond slipped 83 Canadian cents to C$109.52 to yield 3.068 percent.
The 30-year bond fell C$1.60 Canadian cents to C$120.60 to yield 3.805 percent. In the United States, the 30-year Treasury yielded 3.600 percent. (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)
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.