October 27, 2010
The Loonie practically erased its gains against the Greenback from Monday as the American currency beefed up and pushed USD/CAD higher yesterday. The Loonie hardly put up a fight! The lack of reports from Canada allowed USD/CAD to finish at 1.0240, up 36 pips for the day.
Unfortunately, the Loonie couldn’t find support from commodities either. Moves in the commodities markets remained weak yesterday and couldn’t give bulls what they needed.
Uncertainty surrounding the U.S. FOMC statement next week seems to be taking its toll on the Loonie as well. Remember, the U.S. is Canada’s largest trading partner. Since the two are practically joined at the hip, what affects the U.S. usually has a great impact on Canada, too.
In other news, BOC Governor Mark Carney took center stage and spoke before the Finance Committee of the House of Commons. He sounded particularly concerned about Canada’s labor productivity, saying that it is woefully low. He also said that even though the economy has been faring better than most advanced countries, he’s expecting business investment to take over and fuel economic growth as consumer spending is expected to weaken in the coming years.
Today, we’ll hear more about what Carney has to say about the economy when he speaks at 8:15 pm GMT. This guy just loves the spotlight, doesn’t he?! Maybe he’ll give us something new to chew on and drop hints about future policy moves. Stay glued to the tube, brah!
"The only cable I watch is the pound baby."