Forex Market News - Canadian dollar tumbles on oil, Dodge's comments
Mon Oct 22, 2007 5:10pm EDT
By Frank Pingue
TORONTO, Oct 22 (Reuters) - The high-flying Canadian dollar
fell hard on Monday, losing 1.5 percent to the U.S. greenback,
due to a combination of lower oil prices and comments from Bank
of Canada Governor David Dodge on the currency's recent
Domestic bond prices, with no Canadian economic data to
influence a move, followed the tone set in the U.S. treasury
market and finished lower across the curve.
The Canadian dollar closed at 98.04 Canadian cents to the
U.S. dollar, or US$1.0199, down from Friday's close of 96.57
Canadian cents to the U.S. dollar, or US$1.0355.
The drop in the Canadian dollar, which had gained about 10
percent in the two months heading into the session, followed
comments on Sunday by Dodge who said the currency's rise was
The remarks followed last week's Bank of Canada's economic
outlook, which said the currency's rise could be explained by
strong global demand for Canadian products.
"It could be just a shot across the bow, maybe some verbal
intervention ... and it could just be prompting traders who
have been holding these (Canadian dollar) long positions to
unwind some of their gains," said Gareth Sylvester, senior
currency strategist at HFIX Plc in San Francisco.
"So it's a contributing factor, as are lower oil prices,
but the primary driver today and the theme of the marketplace
has ben the downturn in global equity markets and high risk
Increased risk aversion leads to the unwinding of carry
trades, where investors borrow a low yielding currency to buy a
higher yielding ones like the New Zealand and Australian
dollars, which, like Canada, are commodity-linked currencies.
A good chunk of the currency's recent rise has been
correlated to the rise in U.S. oil prices, which hit a record
above $90 a barrel last week. So a fall in oil prices back
toward $87 a barrel weighed on the domestic currency.
The Canadian dollar hit parity with the greenback last
month for the first time since 1976 and, until the latest
session, its has shown few signs of backing off.
BONDS END LOWER
Canadian bond prices finished down, matching the drop in
U.S. treasuries, as North American equity markets found their
footing after a lower finish last week and investors had less
appetite for the security of government debt.
Domestic bonds could get some homegrown direction on
Tuesday as the release of retail sales data for August could
set the tone in a quiet week for Canadian economic news.
But moves could be limited ahead of key U.S. housing data
on Wednesday and Thursday, which could affect the U.S. Federal
Reserve's decision on interest rates later this month.
The two-year bond fell 9 Canadian cents to C$100.13 to
yield 4.182 percent, while the 10-year bond dropped 6 Canadian
cents to C$97.57 to yield 4.310 percent.
The yield spread between the two-year and 10-year bond
moved to 12.8 basis points from 15.9 at the previous close.
The 30-year bond fell 3 Canadian cents to C$110.48 to yield
4.365 percent. In the United States, the 30-year Treasury
yielded 4.688 percent.
The three-month when-issued T-bill yielded 3.93 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 12 Mar 2018 A 17:00 US- 3-Yr Auction Tue 13 Mar 2018 A 10:00 DE- ZEW Survey AA 12:30 US- CPI A 17:00 US- 10-Yr Auction Wed 14 Feb 2018 AA 12:30 US- Retail Sales A 12:30 US- PPI A 14:30 US- EIA Crude A 17:00 US- 30-Yr Auction Thu 15 Mar 2018 A 12:30 US- Weekly Jobless A 12:30 US- Philly Fed, Empire PMI A 12:15 US- Industrial Production Fri 16 Mar 2018 A 10:00 EZ- final HICP A 12:30 US- Housing Starts/Permits A 14:00 US- prelim Univ of Mich
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.