Forex Market News - CANADA FX DEBT-C$ falls along with oil, equities
Mon Apr 20, 2009 4:42pm EDT
* C$ finishes at 80.74 U.S. cents
* Bank, economy concerns weigh on investor sentiment
* Bonds higher across curve as equities slide
(Adds details, quote)
By Jennifer Kwan
TORONTO, April 20 (Reuters) - The Canadian dollar touched
its lowest level against the U.S. dollar in a week on Monday as
investors flocked to the greenback due to fresh worries about
the U.S. banking sector and ahead of a Bank of Canada interest
rate announcement on Tuesday.
The greenback rallied broadly and North American equity
markets slid after a big increase in reserves for troubled
loans overshadowed better-than-expected quarterly results from
Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz).
The bank also said it expects the credit situation to
worsen, helping to send its stock sharply lower.
"The return of risk aversion has sparked a selloff in most
currencies against the greenback, and commodities -- notably
oil prices -- are lower," said Sal Guatieri, senior economist
at BMO Capital Markets.
Equity markets have rallied over the past six weeks on
optimism the worst of the economic crisis may be over, and as
quarterly results from some U.S. banks, most recently,
Citigroup (C.N: Quote, Profile, Research, Stock Buzz) and JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz), came in in better than
"A lot of it goes back to the risk aversion theme that's
been the market focus for the last few months," said George
Davis, chief technical strategist at RBC Capital Markets.
The Canadian dollar finished at C$1.2385 to the U.S.
dollar, or 80.74 U.S. cents, down from C$1.2150 to the U.S.
dollar, or 82.30 U.S. cents, at Friday's close.
Earlier, it hit C$1.2383 to the U.S. dollar, or 80.76 U.S.
cents, its lowest level since April 9.
Also weighing on the Canadian currency was the price of oil
CLc1, a key Canadian export, which tumbled more than 8
percent to below $46 a barrel on growing caution about the pace
of economic recovery and the impact of that on oil demand.
The retreat in the Canadian dollar comes ahead of the Bank
of Canada's scheduled interest rate announcement on Tuesday
morning, when it is expected to leave its overnight rate steady
at 0.50 percent. [ID:nN16520541]
Arguably more watched will be the central bank's Monetary
Policy Report, due April 23, which is expected to lay out a
framework for nonstandard policy measures -- often referred to
as quantitative easing -- to stimulate the economy.
"Given what's happened on the equity side of the equation I
think it's encouraged some of the shorter-term players to take
some profits on their short dollar/Canada positions that were
built up last week, just because we do have a little bit more
uncertainty coming up," Davis said.
"I get the sense given the magnitude of the move we've seen
we did see some profit-taking add to the downward pressure on
the Canadian dollar."
Canadian bond prices were higher across the curve alongside
the bigger U.S. Treasury market as money flowing out of equity
markets as investors looked for more secure home in the bond
"People are shifting their money out of equities and
looking for a safer place, and that means government bonds,"
The two-year Canada bond was up 13 Canadian cents at
C$100.30 to yield 1.105 percent, while the 10-year bond rose
C$1.20 to C$107.50 to yield 2.888 percent.
The 30-year bond climbed C$1.95 to C$123.45 to yield 3.658
percent. In the United States, the 30-year Treasury yielded
Canadian bonds mostly underperformed their U.S.
counterparts across the curve, with the 30-year bond yield 3.40
basis points below its U.S. counterpart, compared with about
5.00 basis points below on Friday.
(Reporting by Jennifer Kwan; 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.