Forex News - Canadian dollar ends down following inflation data
Canadian dollar ends down following inflation data
Wed Jul 18, 2007 5:24PM EDT
By Frank Pingue
TORONTO, July 18 (Reuters) - The Canadian dollar finished lower against the U.S. currency on Wednesday as it took a hit from unexpectedly low inflation data that rattled expectations of further interest rate hikes by the Bank of Canada.
Canadian bond prices got a slight boost after the inflation data and the gains intensified after comments from U.S. Federal Reserve Chairman Ben Bernanke about the U.S. housing slump.
The Canadian dollar closed at C$1.0446 to the U.S. dollar, or 95.73 U.S. cents, down from C$1.0434 to the U.S. dollar, or 95.84 U.S. cents, at Tuesday's close, though comfortably above its session low.
During the overnight session the Canadian dollar had shot to a 30-year high versus the U.S. dollar of C$1.0400, or 96.15 U.S. cents, but it quickly reversed course after the inflation data landed.
A Statistics Canada report showed the overall inflation rate remained steady at 2.2 percent in June, which missed estimates and knocked the Canadian dollar back to C$1.0480, or 95.42 U.S. cents.
As the dust settled the currency managed to claw back a solid chunk of the losses as the market took comfort in the fact that the annual inflation rate remained above the Bank of Canada's 2 percent target, maintaining expectations the bank will raise rates again in September .
"After we got over the headline, we're still over the Bank of Canada's core comfort zone and one month is not going to change the Bank of Canada's mind," said Steve Butler, director of foreign exchange at Scotia Capital.
"We certainly do feel though that if we do see another month or two of weaker CPI then I think that people are going to start taking rate hikes off the table very quickly."
The Bank of Canada hiked its overnight rate by 25 basis points last week to 4.50 percent, its first increase since May 2006, and most analysts expect it to continue its tightening policy in September.
On top of other domestic data, the central bank will get to see one more inflation report on Aug. 21 before it delivers its next rate decision on Sept. 5.
BONDS GET RARE BOOST
Bond prices got an early boost as the inflation data missed estimates, but Bernanke's comments helped the market post one of its more sizable gains in recent memory.
The Fed chief warned that a slowdown in the U.S. housing market could last longer then anticipated.
"(The move) was related in part to some of the comments that Bernanke made about slower economic growth and the fact that the Fed is looking at a slower pace of growth than what it initially estimated in February," said Marc Levesque, chief fixed income strategist at TD Securities.
Another piece of domestic data that showed the leading indicator rose 0.2 percent in June, half of what was expected, did not have any noticeable effect on the bonds market.
The two-year bond rose 5 Canadian cents to C$98.38 to yield 4.667 percent, while the 10-year bond gained 16 Canadian cents to C$95.59 to yield 4.612 percent.
The yield spread between the two-year and 10-year bond moved to -5.5 basis points from -5.8 basis points at the previous close.
The 30-year bond increased 35 Canadian cents to C$118.30 to yield 4.540 percent. In the United States, the 30-year treasury yielded 5.126 percent.
The three-month when-issued T-bill yielded 4.51 percent, down from 4.53 percent at the previous close.
Reuters journalists are subject to the Reuters 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."
Actionable trading levels delivered to YOUR charts in real-time.
Tue 17 July 2018 AA 08:30 GB- Employment A 13:15 US- Industrial Production AA 14:00 US-Powell Testimony Wed 18 July 2018 AA 08:30 GB- CPI A 12:30 US- Housing Starts/Permits AA 14:00 US-Powell Testimony Thu 19 July 2018 AA 1:30 AU- Employment AA 08:30 GB- Retail Sales A 14:30 US- EIA Crude A 12:30 US- Weekly Jobless Fri 20 Jun 2018 A 12:30 CA- CPI/Retail Sales
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
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.