Forex Market News - Canadian dollar lifted by commodities, bonds rise
Fri Oct 26, 2007 5:30pm EDT
By John McCrank
TORONTO, Oct 26 (Reuters) - Strong commodities prices gave
a boost to the Canadian dollar, which reached a 33-year high
against a weaker U.S. dollar on Friday.
Domestic bond prices, with no major economic data to
consider, moved higher as the relentless climb of the Canadian
currency increased the likelihood that the next interest rate
move by the Bank of Canada will be a cut.
The Canadian currency closed at at US$1.0393, making a U.S.
dollar worth 96.22 Canadian cents, up from Thursday's close of
US$1.0353, or 96.59 Canadian cents.
During the overnight session the Canadian dollar hit
US$1.0428, its highest level since 1974. That was partly due to
U.S. crude oil prices (CLc1: Quote, Profile, Research) surging to a record high above $92
A 28-year high for gold prices <XAU=> above $785 an ounce
also helped the currency, as Canada is a major commodities
producer and exporter.
While it slipped back some during the session, the currency
stayed well bid as investors sold off the U.S. dollar.
"We've seen oil, gold, and base metals increasing and
providing strong backdrop for the Canadian dollar, but the
driving force was U.S. dollar weakness," said Matthew Strauss,
senior currency strategist at RBC Capital Markets.
The greenback has been under siege as of late as the U.S.
economy has been battered by a credit crunch and a crisis in
the housing sector.
The U.S. dollar hit a record low against a basket of major
currencies on Friday as investors bet the U.S. Federal Reserve
will cut interest rates when it meets next week, and that it
may be forced to cut again after that.
The market has priced in a 25 basis point cut by the Fed to
4.50 percent next week, which would put the key U.S. rate on
par with Canada's for the first time since February 2005.
BONDS MAKE GAINS
Canadian bond prices climbed higher ahead of next week's
Fed meeting and as market players worried that an interest rate
cut may also be in Canada's near future.
"One factor I can point to (for the rise in bond prices) is
just the relentless strength of the Canadian dollar," said Doug
Porter, deputy chief economist at BMO Capital Markets.
That's because there is a growing sense that the currency
is getting away from policy makers, despite the growing
rhetoric over how the Canadian dollar has risen too far too
fast. That may increase the chances that the Bank of Canada
will have to translate their words into action by cutting
interest rates, he said.
Porter added that the strong Canadian dollar could also
translate into significantly lower inflation as it allows firms
to cut prices.
A survey released by Statistics Canada showed Canadian
manufacturers' optimism about output and demand for their goods
dimmed in the fourth quarter. The firms cited more production
difficulties due to the rapid rise of the Canadian dollar and a
skilled labor shortage.
The two-year bond was up 8 Canadian cents at C$100.25 to
yield 4.122 percent, while the 10-year bond rose 31 Canadian
cents to C$97.81 to yield 4.280 percent.
The yield spread between the two-year and 10-year bond
moved to 15.8 basis points from 16.0 at the previous close.
The 30-year bond increased 61 Canadian cents to C$110.85 to
yield 4.344 percent. In the United States, the 30-year treasury
yielded 4.697 percent.
The three-month when-issued T-bill yielded 3.96 percent, up
from 3.95 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.