October 6, 2010
“It’s my turn!” screamed the Loonie as it arose victorious against the USD yesterday. It managed to bounce back from its loss to the USD at the start of the week to push USD/CAD lower. At the end of the day, the pair closed 48 pips lower at 1.0173.
No reports were released from Canada but USD weakness helped make the Loonie more attractive to investors. In addition to that, rising commodity prices also gave it a boost. Com doll power!
In other news, BOC Senior Deputy Governor Tim Macklem sided with the US and predicted bad things to come for the global economy is China doesn’t allow the yuan to appreciate enough. He also expressed concern over the possibility of QE part 2 in the U.S. Don’t forget, the US is Canada’s largest trade partner, so any economic changes in the U.S. may have a heavy impact on Canada as well.
Today, Canada is scheduled to roll out its Ivey PMI report. Analysts weren’t feeling September’s performance as much as they did August’s and say the report will likely record a drop from 65.9 to 62. Still, this decline isn't as bad as you would think. After all, it's still well above a reading of 50, which is indicative of expansion. Tune in at 2:00 pm GMT to see the actual results!
"The only cable I watch is the pound baby."