Forex Market News - Canadian dollar follows oil prices to higher close
Thu Oct 18, 2007 5:41pm EDT
By Frank Pingue
TORONTO, Oct 18 (Reuters) - The Canadian dollar closed at
its highest level of the week on Thursday as a soft greenback
and another strong run-up up in commodity prices offset a brief
slip after the Bank of Canada said it was surprised by the
extent of the domestic currency's rise.
Domestic bond prices finished higher across the curve as
the nagging credit concerns that weighed on the bigger U.S.
market weighed on Canadian bonds as well.
The Canadian dollar closed at 97.37 Canadian cents to the
U.S. dollar, or US$1.0270, up from Wednesday's close of 97.56
Canadian cents to the U.S. dollar, or US$1.0250.
Oil prices extended their record rally toward $90 a barrel,
and that tends to help support the currency as Canada is a
major producer and exporter of oil.
The gains by the currency, which hit a session high of
97.31 Canadian cents to the U.S. dollar, or US$1.0276, were
helped even further as the U.S. currency was bogged down by
soft economic data.
"Number one, obviously, we have seen a fairly dramatic
selloff in the U.S. dollar today, so the weakness in the
greenback has supported the (Canadian) currency," said George
Davis, chief technical strategist at RBC Capital Markets.
"Commodity prices are staying firm as well ... gold moving
to new highs and crude oil trading back above $89 a barrel has
been a positive."
The Canadian dollar had a brief bout of weakness early in
the session, easing to 97.80 Canadian cents to the U.S. dollar,
or US$1.0225, shortly after the Bank of Canada issued comments
about the currency.
In its Monetary Policy Report update the central bank said
"the magnitude of the recent appreciation appears to have been
stronger than historical experience would have suggested."
According to Davis, some traders took that comment to mean
the bank was indicating that some of the Canadian dollar's
recent appreciation was a Type II move and not Type 1, which he
said would imply that it wasn't backed by fundamental economic
But the drop was short-lived as the currency turned higher
as the Bank of Canada took questions from the media and made no
overt mention of a Type II, or speculative, move when
The bank also said in its report that it expects to hold
its key interest rates steady through all of 2009 as weaker
U.S. growth, the stronger domestic currency and tougher
borrowing terms sap strength from the domestic economy.
BONDS EXTEND RALLY
Canadian bond prices extended a recent rally, this time
following the U.S. lead, after weak data from the United States
and ongoing credit concerns boosted expectations the U.S.
Federal Reserve would cut interest rates again soon.
Domestic bonds will likely not look south of the border for
direction on Friday as the key Canadian economic report for the
week, September's consumer price index data, is due.
The Bank of Canada said it would leave C$500 million in the
Large Value Transfer System overnight on Thursday and plans to
leave C$400 million in the system on Friday.
And for the second straight day, the bank decided not to
inject money into markets, which it had been doing since late
September to help lower the overnight rate towards its target
and improve liquidity.
The two-year bond rose 9 Canadian cents to C$100.04 to
yield 4.229 percent, while the 10-year bond rose 36 Canadian
cents to C$97.05 to yield 4.378 percent.
The yield spread between the two-year and 10-year bond
moved to 14.9 basis points from 14.4 at the previous close.
The 30-year bond rose 64 Canadian cents to C$109.59 to
yield 4.416 percent. In the United States, the 30-year treasury
yielded 4.769 percent.
The three-month when-issued T-bill yielded 3.95 percent,
down from 3.97 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.
Mon 23 July 2018 A 14:00 US- Existing Homes Sales Tue 24 July 2018 AFlash PMIs Wed 25 July 2018 A 08:00 DE- IFO Survey A 14:00 US- New Homes Sales A 14:30 US- EIA Crude Thu 26 July 2018 AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless A 12:30 US- Durable Goods Fri 27 July 2018 AA 12:30 US- GDP A 14:00 US- Final University of Michigan
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.