After its bitter performance yesterday, I think the CAD’s gonna need a bit of maple syrup to sweeten up! USDCAD rose from an intraday low of 1.472 to 1.0535, making the CAD the only comdoll that wasn’t able to hold off the Greenback.
The AUD and NZD were able to move up and oil prices rose, but still the CAD slid. What gives?!
Some say its drop was because the markets might have overdone the CAD buying the other day. They say it’s sort of hard to justify such a strong CAD with worries arising over the US’s NFP data, and Canada facing threats of an economic slowdown itself. After all, the US is Canada’s largest trading partner, so if its southern neighbor goes down, it will probably come along for the ride.
If you have plans on trading USDCAD today, you’d better not miss the US’s NFP report at 12:30 pm GMT. This is one of the hardest-hitting reports out there and could potentially spur a strong round of risk aversion if it prints worse-than-expected figures. Be safe out there, kids!
Oh la la Loonie! Canada’s currency was able to end the week with a win against the dollar for the first time in three weeks as USDCAD closed 140 pips higher at 1.0395 last Friday!
We didn’t have anything on tap for the Loonie but it seems like the anti-dollar sentiment of the market was enough for it to hustle. Boo yeah! But with Canadians taking a break from the markets today, enjoying the last few days of summer, will the Loonie be able to hold on to its gains?
Err, let’s see… I guess we’ll just have to keep tabs on the charts to find out.
On Wednesday we have the BoC’s policy announcement at 1:00 pm GMT. Some analysts are betting that the BoC won’t be hiking rates for the third consecutive month with the country’s trade deficit ballooning, core retail sales slumping, and growth slowing. But there are those who remain optimistic and still expect a rate hike from the central bank.
Traders will be watching this closely so it would be wise for you to do the same. Good luck and happy trading!
The Loonie obviously missed the presence of most US and Canadian traders who were off enjoying their Labor Day holiday yesterday. Price movement was relatively limited, with the Loonie slowly trying to score a few gains agains the Greenback. USDCAD started off at 1.0393 and closed at 1.0352.
Canada’s economic schedule is still empty but, now that traders are back from the long weekend, USDCAD could see a little more action today. No economic catalysts are due from the US as well but there are plenty of reports set to be released from other major economies so expect to see more volatility today. Stay on your toes!
After lingering around 1.0350, USDCAD was pushed back towards the 1.0500 area as risk aversion prowled the markets yesterday. But with today’s set of economic reports from Canada, would the Loonie get back in stride?
When a Wall Street Journal report revealed that some European banks understated their debt holdings, many traders started to think that the debt situation in the euro zone is much worse than the stress tests reported. This sparked a flight to safety, eventually forcing the comdolls to give back their recent gains.
However, Canada’s got a full schedule today and this just might give the Loonie enough strength to rally. First up, building permits data are set for release at 1:00 pm GMT. This report is expected to show that building permits slid by 4.2% in July, erasing part of the 6.5% gain seen last June. Around the same time, the BOC will make its monetary policy decision and this might overshadow the effect of the building permits data. If the central bank hikes rates by 0.25% as expected, USDCAD could sink back to the 1.0350 area once more. But if BOC officials downplay the prospect of another rate hike in the future, the Loonie’s gains could be limited.
After that, Canada will release its Ivey PMI reading at 2:00 pm GMT. This manufacturing index is slated to rise from 54.0 to 55.9 in August, signaling a stronger expansion in the industry. A better-than-expected figure could boost the Loonie further.
Soaring, flying, there wasn’t a pip that the Loonie could not reach in yesterday’s trading! USDCAD spent the early part of the day chillin’ just below the 1.0500 handle. After the BOC announced its interest rate decision, the bears took over and drove the pair down to an intraday low of 1.0346 before ending the day at 1.0375 with the Loonie scoring a 133-pip win. Whoohoo!
As you probably know by now, the Loonie’s flight on the charts yesterday was largely because of the BOC’s third consecutive rate hike which puts Canada’s cash rate up to 1.00% from 0.75%. Mighty sweet, eh?
To make things even sweeter, traders found the tone of the central bank’s statement less dovish than what they had been expecting. Despite the disappointment of the recent economic data from the country and the US recovery slowing down, the BOC dudes are wide-eyed and hopeful that consumer spending and business investments in the country will keep hustlin’.
And true enough, an hour after the BoC’s announcement, the Ivey PMI report showed that Canada’s manufacturing sector expanded at the its fastest rate since July 2008! The figure came in at 65.9 beating the consensus which was only at 55.9. Boo yeah!
Some traders are expectant that positive vibes for the Loonie didn’t end there. They’re thinking that with the sharp increase in manufacturing activity, there’s a good chance that the trade balance report for July will beat the -0.8 billion CAD consensus. But then again, they could be wrong. Tune it to that later at 12:30 pm GMT.
Along with that, we also have some real estate reports on tap. The number of residential buildings that started construction in July is seen to have declined to 185,000 following June’s 189,100 reading, and the housing price index is anticipated to have remained flat at 0.1% during the month.
For the second day in a row, the Loonie was able one-up on the Greenback. In spite of weaker-than-expected Canadian data, USDCAD still managed to end the US trading session lower at 1.0337 from its Asian session open price of 1.0375. It looks like the Loonie bulls are still feelin’ the love from the BOC rate hike last Wednesday!
The report on Canadian housing starts was only at 183,300 (annualized) instead of 185,000 like initially predicted. It was also significantly lower from July’s 188,900. Meanwhile, the country’s trade balance, which was slated to print 800 million CAD deficit, showed a huge 2.7 billion CAD deficit. Apparently, imports exceeded exports by a huge margin in July and caused the deficit to bloat up!
Whether the Loonie’s bull run will continue or not will depend largely on the results of the unemployment report later today. Scheduled to come out at 7:00 pm GMT, the report is expected to show that a 30,000 net jobs were added in August, while joblessness remained at 8.0%. If the actual figures come in better, we could see the Loonie close out another winning day against the Greenback!
“It’s so fluffyyyyy!!!” cried the markets last Friday, and no, it’s not because of a unicorn. Apparently, the Loonie bears on got all excited at Canada’s fluffed up employment figures. USDCAD leveled off to its 1.0352 closing price after dropping to an intraday low of 1.0288. Meanwhile, EURCAD rose to an intraday high of 1.3200 before ending the week at 1.3158.
Canada reported an additional 35,800 workers in the labor force, but the unemployment rate rose to 8.1%. What’s up?! As my market groupies told me, the increase in workforce was largely due to the education sector making up for the job losses posted in July. If we remove the education sector, jobs numbers would actually post a decline! Tsk tsk.
Let’s hope this week will be cuter for the Loonie! The action will start tomorrow at 12:30 pm GMT when Canada releases its labor productivity numbers for the second quarter. The number is expected to increase by 0.9% from the first quarter’s 0.8% growth, but the latest employment figures might have weighed on the data.
Bank of Canada Governor Mark Carney will also make headlines tomorrow at 3:00 pm GMT when he gives a press statement at the Deutsche Bundesbank in Berlin. Will he give clues on the impact of the recent interest rate hikes on their economy?
Also keep your eyes open for the manufacturing sales data on Wednesday at 12:30 pm GMT. Market geeks expect the figure to remain at July’s 0.1% growth but a better-than-expected figure might signal that Canada is getting some action from Australia and China’s good economic data.
The Loonie, along with its commdoll homies, strut its swagger on the charts yesterday. Holler! After opening the week at 1.0326, USDCAD went on a downtrend all the way to the day’s close at 1.0274.
Thanks to better-than-expected industrial production figures from China, the Loonie was able to get its pip-groove on. Hmmm, I wonder if there’s enough risk appetite left in the market to launch the Loonie into another rally against the dollar.
Anyway, today we have a few economic on tap for the currency which may help use gauge which it will take on the charts. At 12:30 pm GMT, we have the motor vehicle sales report which is expected to show a 1% increase in July, and the capacity utilization rate which is anticipated to come in at 75.5%. Along with those, we also have the labor productivity index which is seen to have declined by 0.5% during the second quarter.
Bear in mind that these are only secondary reports and may have very limited impact on the Loonie. You may want to keep tabs on the [US retail sales](http://www.babypips.com/forexpedia/Retail_Sales) report which is also scheduled at 12:30 pm GMT as this may cause some volatility in FX hood, yo!
The Loonie was the only one in the Commdoll hood which was unable to bring home the bacon yesterday as USDCAD ended the day three pips higher at 1.0277. Tsk, tsk…
Perhaps it was because of the mixed economic reports that we saw from Canada. Motor vehicle sales posted an upside surprise when July’s figure came in at 2.4% and beat the market’s consensus which was only at 1.0%. That was a “Yey!” for the Loonie but then there was the labor productivity index for the second quarter from which it got a “Boo!” According to Statistics Canada, average labor productivity output per hour printed a 0.8% decline which was worse than the 0.5% contraction that analysts had braced for.
I wonder if the Loonie will be able to hustle its muscle on the charts with today’s report on manufacturing sales due at 12:30 pm GMT. Analysts are expecting to see a modest increase of 0.2% in July following June’s 0.1% reading. If the actual figure beats the consensus, then we may just see the Loonie rally again!
Whew! Saved by the USDJPY bells! The Bank of Japan’s currency intervention also boosted the Loonie against both the dollar and the yen, and made it easy for traders to shrug off Canada’s bad economic data. CADJPY soared by 253 pips at 83.38, while USDCAD finished the day at 1.0265 after hitting an intraday high of 1.0321.
Yesterday we saw that Canada’s manufacturing sales for July dropped by 0.9% after falling by 0.1% in June. This put a crease on the Loonie bulls’ faces as an increase of 0.2% was expected. Talk about timely intervention!
Will the Bank of Canada (BOC) give thanks to the Bank of Japan? Maybe not. But today at 12:00 am GMT we’ll hear from BOC Deputy Governor Timothy Lane as he gives his speech at the Board of Trade in St. John’s. Let’s hope he brings good news!
Old Mr. Loonie was rangin’ yesterday as USDCAD found support around 1.0250 and resistance near 1.0290. That’s probably because Canada didn’t release any economic reports yesterday.
Canada won’t be releasing any big reports again today but make sure you stay tuned for the release of the US CPI and consumer sentiment report. CPI is expected to post a 0.2% uptick while core CPI is projected to rise by a mere 0.1%. Meanwhile, consumer sentiment in the US is expected to improve from 68.9 to 70.2. Stay tuned for those reports around 12:30 pm GMT.
The Loonie’s movement was absolutely loony last Friday as it staged a strong rally against the Greenback before suddenly erasing its gains and more. What the deuce happened then?
The improvement in risk appetite, reflected by the rally in equities and higher-yielding currencies, drove USDCAD to a low of 1.0217 during the European session. However, the Loonie’s rally soon fizzled when the US reported worse-than-expected consumer sentiment figures. It turns out that sentiment turned sour in September, which was totally unexpected. Because of that, USDCAD zoomed up to a high of 1.0351 and closed at 1.0314.
Will the Loonie resume its rally this week? The economic calendar reveals that plenty of top-tier reports are due from Canada. To start off, the foreign securities purchases report and the wholesale sales data are due today at 12:30 pm GMT. Net purchases of Canadian securities are expected to climb from 5.39 billion CAD to 8.11 billion CAD, reflecting stronger demand for Canadian assets in July. Meanwhile, wholesale sales are expected to be up by 0.4% in July, erasing the 0.3% decline seen previously.
On Tuesday, Canada will release its CPI and core CPI reports. These are expected to show that inflation stayed flat in August while core inflation rose by 0.2%. Stay tuned for that at 11:00 am GMT since stronger-than-expected results could drive the Loonie higher in hopes that the BOC would think it’s necessary to hike rates again.
Then, on Wednesday, Canadian retail sales reports are due. Retail sales are expected to post a 0.4% increase in July while core retail sales are projected to be up by 0.5%. Since consumer spending accounts for a huge chunk of the GDP, strong figures could allow the Loonie to rake in more gains. Also due Wednesday is Canada’s leading index, which could show an improvement from 0.4% to 0.6% in August.
No economic reports are due from Canada for the rest of the week but it doesn’t mean that the excitement would die down. Stay on your toes at all times!
Whew! Good thing the Loonie got a piece of the comdoll action yesterday! Despite printing disappointing economic reports, the comdoll rally closed USDCAD 30 pips lower than its open price.
Australia’s good reports might have given the Loonie a lift this time, but how long can the comdoll bulls ignore Canada’s economic data? The foreign securities purchase revealed an increase to 5.48 billion CAD. This might be more than last June’s 5.39 billion figure, but this was also much less than the expected 8.11 billion CAD. Uh-oh, where did all the love go?
Certainly not to the wholesalers! The monthly wholesales report declined by another 0.1% in July after its 0.3% drop in June.
Hmm, I guess we’ll just have to wait for the CPI report today at 11:00 am GMT to know more about the consumers’ spending habits. August’s CPI is expected to show a flat 0.0% reading after rising by 0.5% last July, while the core CPI is expected to rise by 0.1% from its 0.1% decline last June.
Also keep close tabs on the big FOMC decision in the US today, as it can greatly influence risk trading, especially if the Fed decides to start another round of quantitative easing.
“And I just can’t get enough, just can’t get enough” The Loonie did a Depeche Mode number yesterday when it sailed against its US counterpart for the second day in a row despite printing less-than-stellar economic data. While it lost against its other counterparts, the Loonie inched 24 pips higher against the dollar. Sweet!
The Fed’s dovish comments must have been really strong because the Loonie bulls couldn’t have been happy about Canada’s inflation figures. Yesterday’s monthlyCPI report revealed a 0.1% decline in prices, while core prices inched up to a 0.1% rise. Gasp! You know what this means – less inflationary pressures mean less motivation to hike interest rates! Uh-oh.
Maybe we can find more support from the economic reports today, starting with the retail sales report at 12:30 pm GMT. Retail sales for July is expected to pick up by 0.5% from June’s 0.1% uptick, while the sales of goods excluding autos is also pegged to increase by 0.4% from June’s 0.5% decline.
The leading index for August will also pop in the pip-charts today, and a figure higher than July’s 0.4% rise just might attract more love from the Loonie bulls.
I guess the Loonie didn’t get the memo. While almost every other major currency has been trouncing the Greenback lately, the Loonie hasn’t been having much luck against its American counterpart. USDCAD moved up the charts to record a loss for the Loonie as it closed at 1.0298 to lock in a 30-pip gain for the day.
Once again, it was the only comdoll that failed to conquer the weak Greenback as it was handicapped by poor retail sales figures. Retail sales fell short of expectations of a 0.5% growth by printing a disappointing 0.1% drop in July. Canada has failed to post an increase in retail sales four months in a row now. If that isn’t confirmation of anemic domestic demand, then I don’t know what is!
Something tells me I shouldn’t hold my breath for a BOC rate hike in 2010. With such soft inflationary pressures and such weak consumption, the BOC has little reason to increase interest rates.
Since Canada isn’t publishing any reports today, you might as well put on your risk sentiment hats. You gotta be ready just in case a bout of risk aversion punishes the Loonie!
Oops, looks like the comdoll connection failed to boost the Loonie for the second day! Without any reports from Canada, the Loonie traded on slight risk aversion and on Canada’s economic data from earlier this week. USDCAD climbed by 42 pips and closed at 1.0340.
Our board is still empty for today, but keep close tabs on any reports that might influence comdoll trading. Will risk aversion spread its way across the markets? Let’s end this week with a big bag of pips!
It was another good day for the comdoll connection! Like the other commodity-related currencies, the Loonie traded higher against the dollar on continued aversion and weakness in the US economy. USDCAD finished the day off with an 84-pip drop at 1.0256. Meanwhile, CADJPY ended the week at 82.16 after hitting an intraday high of 82.68.
No report is on deck for Canada today, but watch for the raw materials prices report on Wednesday at 12:30 pm GMT, and the big GDP report on Thursday at 12:30 pm GMT. After the disappointments in Canada’s CPI and retail sales figures, worse-than-expected numbers for these reports could topple the Loonie from its anti-US dollar highs. Be on your tippy-toes this week!
Someone ought to teach the Loonie to throw a simple one-two combination! It failed to follow up its victory last Friday with a win as it tapped out to the already-weakened USD yesterday. USDCAD traded flat for most of the day, only to make a slow and steady climb late in the New York trading session. In the end, it closed at 1.0283, 37 pips higher for the day.
While the Canadian press was chillin’ on the sidelines (and not releasing any reports), the Loonie was left at the mercy of other market factors. One concern that arose yesterday was if an oversupply of oil could hurt the Canadian economy. I hope you haven’t forgotten the important role oil has in Canada’s economy as one of its biggest exports. Making matters worse, it didn’t help the Loonie’s cause that oil prices fell yesterday.
Since Canada won’t be releasing any data today, you should probably get a feel for risk sentiment and see how the oil markets are doing. Any more dips in oil prices could set the Loonie up for more losses.
It looks like the Loonie was unable to find direction again yesterday as it ended the day barely changed against the Greenback. After it had opened the Asian trading session at 1.0283, USDCAD rose merely 19 pips to close the New York trading session at 1.0302.
The Loonie’s range bound behavior is probably caused by the lack of economic data from the country. But we could see things changed today though! At 8:30 pm GMT, Canada will release both the raw materials price index (RMPI) and the industrial product price index (IPPI). The RMPI is expected to rise by 0.5%, while the IPPI is slated to show an increase of 0.2%. These reports are considered as leading indicators for inflation, as businesses tend to pass on additional costs they incur to their customers.
Despite stronger than expected Canadian inflation reports, the Loonie was unable to sustain its rally against the Greenback yesterday. After dipping to a low of 1.0241, USDCAD zoomed back up to close at 1.0314.
Both inflation reports from Canada came in better than expected as the raw materials price index and the industrial product price index posted gains of 2.2% and 0.4% respectively. This signals that inflationary pressures remained healthy in August as higher prices of metals led the increase. However, it seemed like traders weren’t too impressed with this report as they turned their eyes to the upcoming reports from Canada.
Today, Canada is set to release its GDP reading for July and analysts are projecting a negative reading. Duhn duhn duhn duhn… After rising by a mere 0.2% in June, a 0.1% contraction is expected for July. A worse than expected reading could push USDCAD above resistance at 1.0350 while a positive reading could keep the Loonie afloat. Stay tuned for that at 12:30 pm GMT.
Later on, BOC Governor Mark Carney is scheduled to testify at the Regional Chamber of Commerce in Windsor. Make sure you pay close attention to his speech at 4:50 pm GMT since he could drop hints about the central bank’s future monetary policy moves.