Forex Market News - CANADA FX DEBT-C$ weighed down by weak domestic GDP report
Fri Jan 30, 2009 5:07pm EST
* C$ hits one-week low after weak GDP data
* Currency stages late rebound as oil prices rise
* Bond prices finish mixed, supply concerns remain
By Frank Pingue
TORONTO, Jan 30 (Reuters) - The Canadian dollar fell versus the U.S. dollar on Friday, after data showed Canada's economy shrank more than expected in November, reinforcing expectations of another interest rate cut in March.
The Statistics Canada report showed the economy shrank 0.7 percent in November, the biggest monthly drop in over five years, which rattled the currency early in the session. Despite an afternoon rally, it was never able to fully recover.
The Canadian dollar closed at C$1.2265 to the U.S. dollar, or 81.53 U.S. cents, down from Thursday's close of C$1.2233 to the U.S. dollar, or 81.75 U.S. cents.
While still lower, it managed to finish comfortably above the one week low of C$1.2425 to the U.S. dollar or 80.48 U.S. cents, that it touched moments after the GDP report.
"A report like that reinforces expectations for the Bank of Canada to cut on March 3, and we're sticking to our call that they cut 50 basis points and leave their rate on hold for a long time," said Derek Holt, an economist at Scotia Capital.
"It takes some of the wind out of the Canadian dollar flows and at the same time with the global picture deteriorating at a quicker than expected pace, that's, going to keep commodities down ... and that too would work against the Canadian dollar."
The Bank of Canada has already lowered its key overnight rate by 350 basis points since December 2007 to 1.00 percent, but many experts anticipate further easing will be needed to help lift the economy out of recession.
A key factor behind the currency's late-session bounce was the rise in prices for oil, a key Canadian export, after OPEC signaled it may deepen record output cuts.
For the week, the Canadian dollar fell 0.4 percent.
Next week, moves in the currency will likely be determined by shifts in commodity prices and domestic economic data, most notably the January unemployment report due on Friday.
Canadian bond prices ended mixed with gains coming on the long end of the curve alongside the rally in the bigger U.S. Treasury market after a report there showed the U.S. economy shrank at its fastest pace in nearly 27 years.
But the retreat was not as deep as analysts had expected.
"Initial optimism from the (U.S.) report quickly dissipated as expectations started to build that the unexpected strength we saw in Q4 would likely get reversed in Q1," said Paul Ferley, assistant chief economist at Royal Bank of Canada.
But nagging concerns over swelling supply tied to deficits in both Canada and the United States, pressured bond prices on the short end of the curve.
The two-year bond fell 4 Canadian cents to C$102.39 to yield 1.421 percent, while the 10-year bond climbed 17 Canadian cents to C$109.57 to yield 3.062 percent.
The 30-year bond rose 80 Canadian cents to C$121.30 to yield 3.770 percent. In the United States, the 30-year treasury yielded 3.602. (Editing by Rob Wilson)
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.