The Loonie might not have lost so much against the dollar early this week, but it hasn’t made leaps and bounds against it either. USD/CAD only dropped to an intraday low of .9906 before it finished the day with an 8-pip slip to .9919.
The economic boards were empty in Canada yesterday, but a pullback on the dollar rally helped boost the comdolls across the board. The Loonie’s gains were limited though, as oil prices declined for the third time in four days.
Apparently, oil investors weren’t happy about the rumors that U.S. President Barack Obama and U.K. Prime Minister David Cameron are talking about increasing oil supply through the U.S. Strategic Petroleum Reserve (SPR).
Will the Loonie catch up with the other comdolls and post more gains against the Greenback today? At 12:30 pm GMT Canada is set to release its foreign securities purchase and manufacturing sales reports. Both reports are expected to come in weaker than their previous readings, but stay at the edge of your seats for any surprises that might come your way!
Good luck and enjoy your weekend, pipsters!
Whew! The Loonie managed to end the week with a win against the dollar by a hairsbreadth! USD/CAD settled 2 pips below the day’s opening price at .9917. That was close!
However, unlike the other comdolls, the Loonie wasn’t really able to take advantage of the dollar’s weakness as worse-than-expected reports from Canada might’ve weighed it down on Friday. Manufacturing sales for January printed a 0.9% decline and disappointed the market’s 0.4% forecast. Meanwhile, foreign securities purchases for the same month posted a 4.19 billion CAD deficit and fell short of the market’s consensus which was for a surplus of 6.27 billion CAD.
I wonder if the wholesale sales report for January will weigh down the Loonie’s performance in today’s trading too. Be on your toes for it, ayt? It’s due to be released at 12:30 pm GMT and it is eyed to come in at 0.4%.
The Loonie was off to a strong start to the week as it snatched 43 pips away from the Greenback to push USD/CAD down to .9870. Will it follow through with another win today?
Walking hand in hand with its fellow comdolls, the Loonie was able to march right up the charts despite the release of downbeat wholesale sales data. According to the latest stats, Canadian wholesale sales dropped 1.0% in January, and the losses mostly came from two industries: the motor vehicles and parts subsector, and the miscellaneous subsector. Bummer! Meanwhile, oil prices rallied once more and helped the Loonie keep its head above water.
We won’t have any major reports on tap from Canada today, so in the meantime, check out what’s happening south of the border. The U.S. is set to release a few reports today that may just direct traffic on USD/CAD, so be sure to check out my writeup on the U.S. dollar as well!
With risk aversion creeping back into the markets, comdolls like the Canadian dollar took a hit in yesterdays trading. USD/CAD climbed back to as high as .9969 before finally settling at .9916, up 50 pips from its opening price. What gives?
The major reason why the Canadian dollar took a hit was due to concerns that Chinese demand may be slowing down. Take note that China has been fuelling the commodity drive, as it needed resources to keep up its production levels. If it appears that China will cut back on its orders, commodity driven currencies like the Canadian dollar stand to take a hit.
For today, the only piece of economic data on tap will be the leading index, which is set to hit the airwaves at 12:30 pm GMT. Word out of the Rockies is that the index ticked up by another 0.5%, which would be a nice follow up to last month’s 0.7% increase and would indicate improving conditions in the Canadian economy. If the index prints an even bigger increase, it could allow the Canadian dollar to bounce back from yesterday’s losses.
Despite the market’s sour sentiment, the Loonie was still able to stay afloat versus the safe haven Greenback yesterday. USD/CAD closed the U.S. trading session at .9923, just 7 pips higher from where it began that day.
The only significant report released from Canada was its leading index. It came in with a 0.6% increase, which was slightly higher than the 0.5% forecast. It was also an improvement from the previous month’s 0.4% figure.
Expect a lot of action from the Loonie today since Canada’s retail sales report will come out today. Scheduled to publish at 12:30 pm GMT, the headline report is slated to show a 1.8% increase. The core version is anticipated to print a 0.5% gain.
Market sentiment finally turned the tide on the Canadian dollar, as USD/CAD soared to new highs yesterday. USD/CAD hit a high at 1.0009 before finally settling at .9994, up 72 pips from its opening price.
The combination of dismal retail sales figures and overall risk aversion proved to be too much for the Canadian dollar yesterday.
First, the Chinese PMI report released early in the Asian session came in weaker-than-expected, as it printed at 48.1. This marked a drop off from last month’s score of 49.6. Risk sentiment has been highly sensitive to Chinese data lately, so whenever there are signs that China may be hitting a slowdown, commodity dollars like the Canadian dollar have taken a hit.
Meanwhile, retail sales figures came in deep in the red, as headline sales grew by just 0.5% last January What’s worse was that core sales actually fell by 0.5%. This was way off the expected 0.5% and 1.8% increases respectively. This data hints that the Canadian economy may be slow coming out of the gate this year.
Today, we’ve got Canadian CPI figures on tap at 11:00 am GMT. Core and headline CPI numbers are projected to print at 0.3% and 0.4% respectively. If the data comes in to show that inflation remains much more subdued than initially thought, it would give the BOC more reason to keep rates lower for an extended period of time, which in turn could weigh on the Loonie.
Party at parity! USD/CAD traded around the major 1.0000 psychological handle on Friday, tapping an intraday high of 1.0035 and a low of .9971. The pair then closed the week at .9978, with a 15-pip win for the Loonie for the day.
Apart from the pick up in risk appetite, the positive inflation reports from Canada also boosted the Loonie in Friday’s trading. The 0.4% monthly increase in the core CPI for February translated to a 2.3% year-on year growth, which is the fastest pace of increase in three years. Analysts had only expected a more modest uptick of 0.2% for the month.
Meanwhile, the headline figure came in just as expected at 0.4%.
Don’t get too excited buying the Loonie though. Remember that Canada’s employment and consumer spending figures has fallen below expectations which could be enough reason for the BOC to hold off hiking rates.
When the comdolls start gaining across the board, you just know that the Loonie bulls are in front of the action! No economic report was released from Canada yesterday, so Loonie traders turned their focus on risk appetite. USD/CAD dropped from its intraday high at parity all the way to its .9913 closing price.
As I mentioned in my USD post, high-yielding currencies got a boost yesterday when Big Ben Bernanke implied that the Fed might remain its accommodative monetary policy longer than market players originally thought. This is also partly why oil prices edged higher yesterday. And we all know how that’s good for the oil-related Loonie!
In other news, the BOC released a brand-spankin’-new bank note yesterday! The new polymer $50 bill (see image below) was released to commemorate the 50[SUP]th[/SUP] anniversary of the Canadian Coast Guard icebreaker and research vessel, [I]Amundsen[/I]. The new material used for the bill is expected to be more durable and contains more anti-counterfeit features than its predecessors.
No other economic report is scheduled for release in Canada again today, so make sure you stay glued to the tube for any report that might affect risk sentiment!
Thanks to the absence of market-moving economic reports from Canada, investors didn’t go loco for the Loonie yesterday. USD/CAD traded higher to end the day 37 pips above its opening price at .9949.
A lot of market junkies, including myself, think that the comdoll’s loss was caused by the pullback following the strong dollar sell-off on Monday. But is it really just a pullback or are we seeing a reversal?
Keep that question in mind and be on your toes for signs in yesterday’s trading. Good luck!
The Loonie found itself holding on to the short end of the stick yesterday as it fell against other major currencies. Against the safe haven Greenback, for instance, the Loonie posted a 31 pip loss.
Because no real tier 1 data was released from Canada yesterday, there really was no clear reason behind the Loonie’s fall. It could be simply profit taking as the pair trades below parity or it could be also be result of risk aversion as the Dow fell 0.33%. Of course, it could also be a combination of both.
In any case, today we’ll see a couple of mid-tier data in the form of the Raw Material Price Index (RMPI) and the Industrial Product Price Index (IPPI). The RMPI is expected to show a 0.4% gain while the IPPI is slated to print a 0.5% increase. The results for both reports will come out at 12:30 pm GMT.
Booooooooring! Due to the absence of major market-moving events, the Loonie pretty much traded in a tight horizontal channel last Friday. It just bounced within a 50-pip range and closed the day barely changed from its opening price.
The only news release that day was the GDP report. The report showed that the economy expanded by 0.1% in January, just as the market expected. At the same time, the GDP figure for December 2011 was revised up to 0.5% from 0.4%. This seems to hint that Canada’s economy will show some strong GDP figures for the first quarter of this year.
There are a couple of important events lined up for Canada this week, but they will all be released on Thursday. Specifically, we’ll see figures on building permits, employment, and the Ivey PMI. The reports on building permits and employment will be released at 12:00 pm GMT while the Ivey PMI will be published at 2:00 pm GMT.
Who needs economic reports when you have the U.S., China, and rising oil prices boosting the Loonie? After reaching an intraday high at .9991, USD/CAD plunged 58 pips lower than its open price and closed at .9904. Here are the details.
The Loonie started the day on the right side of the charts as comdoll bulls reacted to a better-than-expected Chinese PMI report. The rally was later fueled in the U.S. session when the U.S. also clocked in a surprisingly strong manufacturing PMI. As a result of these positive reports, oil prices shot up by as much as 2%, which only boosted the oil-related Loonie higher in the charts.
No Canadian economic report is scheduled for release today, but pay close attention to any report that might cause risk appetite to turn, aight?
The Loonie was actually one of the most resilient currencies yesterday as it was able to hold its ground against the Greenback’s advances. Even with the Fed softening its stimulus stance, USD/CAD was able to end the day at .9903, virtually unchanged from its opening price.
It seems Loonie bulls still had a bit of wind left in their sails from BOC Governor Mark Carney’s upbeat words on Monday night. Carney claimed that the economy is performing above expectations and that the threat of a European debt crisis has died down a bit. Ahhh, nothing like good ole solid fundamentals and optimistic remarks to keep your currency afloat, eh?
No major reports to track in Canada today. So in the meantime, I suggest y’all check out the heavy guns that the U.S. is set to unveil. Good luck, fellas!
Despite the crazy moves on other pairs, we didn’t see much on USD/CAD. The pair basically stayed within range and didn’t make any new significant high or low. Will we see more of the same today?
We could be in some wild moves later during the U.S. session as the Bank of Canada will be releasing its business outlook survey. The survey asks 100 participants to rate their thoughts on current and future business conditions. The report could provide some insight as to what direction the central bank tends to push monetary policy towards, so watch out!
Check out the 1.0000 handle holdin’ like a boss for USD/CAD! The pair may have gapped higher over the weekend but the Loonie held its ground and managed to outpace the U.S. dollar in yesterday’s trading. Will the Canadian currency be able to hold on to its gains today?
A relatively upbeat BOC business outlook survey helped keep the Loonie afloat yesterday, as the report showed that the central bank was optimistic about business sales in the near future. Firms included in the survey also expressed their positive outlook for employment and investment among businesses for the coming 12 months.
There aren’t any economic reports on Canada’s schedule for today, which means that USD/CAD could be swayed by risk sentiment. Bear in mind that China is set to release its trade balance and new loans data today and these could determine whether the risk rallies will continue or not.
And just like that, the Loonie is now zooming out of consolidation! Thanks to broad dollar strength, USD/CAD broke past its recent highs and out of major consolidation to finish at 1.0042, 78 pips above its opening price.
The Canadian dollar succumbed to pressure from the dollar, which benefited from a slight run of risk aversion. If this continues, we may just see USD/CAD make a run back up to its former highs!
For today, all we’ve got is housing starts data coming in at 12:15 pm GMT. Word on the street is that the annualized pace of new residential buildings that began construction in the past month remained steady at 201,000. Remember, this report is a leading indicator of economic activity as the construction of a new building sparks employment. If the report prints a higher-than-expected pace, it could give the Canadian some nice support during the New York session.
The Loonie’s really keepin’ it tight yo! USD/CAD moved sideways in a small range between 1.0020 and 1.0050 yesterday before closing at 1.0033. Is there any catalyst for a breakout today?
The lack of hard-hitting reports from both the U.S. and Canada probably explains why USD/CAD was stuck inside a 30-pip range the entire day.
Today, Canada is set to print its trade balance and possibly show a slight increase in its trade surplus from 2.1 billion CAD to 2.2 billion CAD in February. A higher than expected surplus could trigger a downside breakout in USD/CAD as this would imply that Canadian exports were stronger during the month. A smaller than expected surplus, on the other hand, might push USD/CAD to the upside since this would signal weaker exports growth for Canada. Keep an eye out for the actual figure due 12:30 pm GMT!
Don’t forget that the U.S. is set to release a bunch of top-tier data today as well, so make sure you drop by my U.S. economic commentary[](http://The scrilla was generally weaker across the board, as risk appetite support a mini rally in higher yielding currencies. EUR/USD finished at 1.3106, 25 pips above its opening price, while GBP/USD managed to gain 38 pips and closed at 1.5907.Read more: http://forums.babypips.com/daily-forex-economic-commentary/26002-daily-economic-commentary-united-states-74.html#ixzz1rmXjGPLa) if you plan to trade USD/CAD.
The Loonie brushed off yesterday’s weaker-than-expected trade data as USD/CAD posted its largest daily gain for 2012. From its opening price, the pair headed straight down the charts to record a 98-pip slide by ending the day at .9944.
Rumors that China would be able to avoid a hard landing helped boost risk appetite and fuel demand for the Loonie yesterday. Market jitters were also calmed by positive signs from Europe, as Italy’s bond auction went off without a hitch. Furthermore, the U.S. dollar was weakened by dovish remarks from Fed policymakers. Taken together, these three factors created the perfect environment for the Loonie and its fellow comdolls to rally.
On the domestic front, Canada failed to meet expectations with its trade balance report as its surplus shrank from 1.9 billion CAD to 0.3 billion CAD, instead of widening to 2.2 billion CAD as many had expected. As it turns out, a 3.9% slump in exports and a 0.2% uptick in imports were to blame.
Apparently, energy products, led the decline in exports as it fell 6.9% last month. Ouch! Could this be because of weaker demand from the U.S., its largest trading partner? Just something to think about!
No more Canadian reports to chew on today. In the meantime, if you plan on trading USD/CAD, I suggest you monitor risk sentiment and check out the reports the U.S. will be rolling out later in the day. Good luck, fellas!
After the Loonie took two steps forward on Thursday with its strong rally against the dollar, it took a step back on Friday and pared some of its wins as risk aversion kicked in. USD/CAD bounced from support around .9950 and closed 40 pips above its opening price at .9984.
Concerns about a Spain needing a bailout soured investors’ appetite for risk and sent most higher-yielding currencies down the charts. To top it off, the lack of economic reports from Canada only left the Loonie even more vulnerable to market sentiment.
But don’t worry! If you’re looking to play a news trade on the currency, you’ll have the foreign purchases report to sink your teeth into today. It’s due at 12:30 pm GMT, and it is eyed to come in at 4.23 billion CAD. Just be careful though. For the most part, I think market sentiment will still continue to dictate today’s price action and the effect of the report may not last long.
With the BOC’s rate statement just around the corner, it seems the Loonie was in no mood to budge yesterday as it ended virtually unchanged against the Greenback. USD/CAD rose to an intraday high of 1.0034 before it settled at .9998, up just 3 pips on the day. Will today’s rate statement finally get it moving?
Foreign securities purchases increased by 12.5 billion CAD in February, which only means that Canadian securities, particularly federal government bonds, were in hot demand. Just like lemonade on a sunny day yo! The actual figure surpassed forecasts which called for 4.23 billion CAD worth of purchases.
Up ahead, we have the much anticipated BOC rate statement at 1:00 am GMT. No one really expects the central bank to hike rates up from 1.00% to 1.25%, but there’s a chance we may hear a slightly hawkish tone to the BOC’s announcement in light of Canada’s recent economic improvements. Don’t miss this one, fellas! It could be the major catalyst that you’ve been waiting for!