Forex Market News - Canadian dollar edges up despite lower oil prices
Mon Nov 5, 2007 5:00pm EST
By Frank Pingue
TORONTO, Nov 5 (Reuters) - The Canadian dollar edged higher
against the U.S. currency on Monday and extended its charge to
historic highs as momentum managed to offset a drag from lower
Canadian bond prices bounced back from a selloff at the end
of last week as investors fled equities in search of more
secure assets in the wake of pessimistic U.S. credit news.
The Canadian dollar closed at US$1.0718, valuing each U.S.
dollar at 93.30 Canadian cents, little changed from Friday's
close of US$1.0704, or 93.42 Canadian cents.
During the overnight session the Canadian dollar hit
US$1.0748, or 93.04 Canadian cents, which marked its highest
level since the late 1800s.
But the currency handed back the bulk of those gains ahead
of the North American session, where it spent the day in a
tight range of US$1.0690 to US$1.0723.
The latest rise in the Canadian currency, small compared
with some of its recent gains, showed traders remained
comfortable bidding the currency higher even if some of its
support factors took a breather.
"I think it just shows how resilient the currency is, that
it can keep rising on a day basically void of domestic economic
news and generally an unfriendly backdrop," said Doug Porter,
deputy chief economist at BMO Capital Markets.
"There had been so many positive factors driving the
currency in recent weeks, it's not clear what's given it this
latest last little push."
While rising oil prices have been a driving factor behind
many of the commodity-linked Canadian dollar's gains, they
reversed course on Monday as the U.S. subprime mortgage crisis
raised concern over the economic health of the United States.
Fresh concerns about the U.S. economy surfaced over the
weekend as Citigroup (C.N: Quote, Profile, Research) said it might take an additional $11
billion writedown for subprime losses. That comes on top of
$6.5 billion it wrote off just three weeks ago.
During the session, Canadian Finance Minister Jim Flaherty
delivered a speech in Toronto and said the rapid rise in the
Canadian dollar is largely due to a weaker U.S. currency,
The Canadian dollar has surged nearly 25 percent since the
beginning of the year and it broke through parity with the U.S.
currency in September for the first time since 1976.
Canadian bond prices finished higher as their reputation as
a safe haven came to the fore due to a selloff in equity
markets and the credit crisis news out of the United States.
The rise in bond prices came after a selloff at the end of
last week, when key jobs data from Canada and the United states
came in well ahead of expectations.
"We sold off on Friday in the wake of very strong labor
market data and the market is kicking back a little bit of that
selloff today," Porter said.
The two-year bond rose 1 Canadian cent to C$100.29 to yield
4.108 percent, while the 10-year bond gained 13 Canadian cents
to C$97.73 to yield 4.291 percent.
The yield spread between the two-year and 10-year bond
moved to 18.3 basis points from 19.2 at the previous close.
The 30-year bond added 45 Canadian cents to C$110.86 to
yield 4.344 percent. In the United States, the 30-year Treasury
yielded 4.629 percent.
The three-month when-issued T-bill yielded 4.02 percent, up
from 4.00 percent at the previous close.
(Reporting by Frank Pingue; Editing by Peter Galloway)
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."
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.