With risk aversion in full tow last Friday, USD/CAD broke out of consolidation mode and hit its highest level in two weeks! USD/CAD rose 67 pips to finish the week at .9955. Will risk aversion continue to drive the pair higher, or can the Loonie make a comeback?
Aside from risk aversion stemming from the U.S. NFP report, the Canadian dollar also found itself with the short side of the candlestick when Ivey PMI printed at 52.7, which was way worse than the projected reading of 62.6. While this still indicates some optimism amongst business managers, it also means that our homies from the Great White North aren’t nearly as optimistic about the economy as they once were.
For today, we’ve got building permits on tap at 12:30 pm. Word on the street is that permits dropped slightly by 0.5% last April, after it grew by 7.5% in March. If this report comes in much worse-than-expected, it could help trigger another decline in the Canadian dollar.
Hang in there, Loonie! USD/CAD managed to keep its head below the 1.0000 handle yesterday after spiking to a high of .9988. At the end of the day, the Loonie was able to outpace the Greenback with USD/CAD closing at .9930. Will the Canadian currency be able to hold on to its gains?
Stronger than expected Canadian building permits allowed the Loonie to stay afloat yesterday as the report showed a 4.7% jump for March. This was much better than the estimated 0.5% decline, but was weaker than February’s 7.6% increase. Still, the report chalked up its second monthly climb, which spells bright prospects for Canada’s housing industry.
Canada is set to release another housing industry report today. The housing starts figure for the month of March is due 12:15 pm GMT and is expected to come in at 204K, which would reflect a slight pullback from February’s 216K figure. Keep an eye out for the actual release because another strong figure could give the Loonie a boost.
Score another one for the bears! They were in complete control of the Canadian dollar yesterday as they rode the tides of risk aversion and carried USD/CAD higher. As a matter of fact, the pair didn’t move much below its opening price and began its rally early in the day to end 54 pips higher at .9984.
Though housing starts data came in above expectations, it didn’t give Canadian dollar bulls the boost they needed to overcome the selling pressure rooting from risk aversion. Housing starts grew from 215,000 to 245,000 last month, beating forecasts which called for an annualized figure of 204,000.
So far, momentum seems to be carrying USD/CAD higher as the pair is already testing parity. But will this major psychological handle hold? Only time will tell! Since we don’t have any Canadian reports on the economic calendar today, USD/CAD price action will probably depend heavily on risk sentiment. That being said, be sure to monitor developments in the euro zone, as traders seem to be focused on the possibility of a “Grexit” (Greek exit) at the moment.
The Loonie joined its comdoll comrades in the losers’ bench yesterday as risk aversion continued to dictate market sentiment. USD/CAD rallied to its 4-week high at 1.0063 before closing the day 27 pips above its opening price at 1.0010.
Some market junkies say that the lack of economic reports from Canada left the Loonie vulnerable to concerns about the euro zone. But don’t worry! Today we have a couple of reports to sink our teeth into. If they come in better than expected, we MIGHT just see USD/CAD trade below parity once again!
Watch out for the trade balance and house price index reports for March at 12:30 pm GMT. A modest trade surplus of 700 million CAD is expected for the month. Meanwhile, house prices are seen to have grown by 0.2%.
Be sure you ain’t snoozing when the reports are released later, ayt?
Parity is sure being stubborn, huh? USD/CAD just couldn’t seem to break below the 1.0000 major psychological level yesterday since risk appetite wasn’t strong enough to boost the Loonie. Could the Canadian jobs data act as a catalyst for a USD/CAD breakdown?
Just when it seemed like USD/CAD was going to breach parity, Canada printed weaker than expected trade balance data and triggered a bounce. Their trade surplus came in at 0.4 billion CAD, slightly higher than the previous month’s 0.3 billion CAD reading, but smaller than the estimated 0.7 billion CAD surplus. Luckily for the Loonie, the U.S. also printed a poor trade balance, which helped keep USD/CAD below the 1.0030 resistance Happy Pip pointed out in her recent trade.
Canada’s jobs report due 12:30 pm GMT today just might be the catalyst that could push USD/CAD for a breakout either way. The report is expected to show a 10.1K increase in net hiring for April, which could bring the unemployment rate up from 7.2% to 7.3% during the month. If the actual data comes in as expected, it would be a bit worse off compared to March’s 82.3K jump in employment, which could still be bearish for the Loonie. But if the actual figures beat expectations, we might just see USD/CAD make a convincing break below parity!
Where do you think you’re going, Loonie? Definitely not above 1.0050! Once again, USD/CAD found resistance at 1.0050 too tough to handle and ended up closing just above parity. Will the long-term resistance level continue to hold up this week?
One reason why the Canadian dollar was resilient last Friday was due to the waxing hot Canadian employment data. 58,200 jobs were added to the economy last month, which was nearly six times the anticipated 10,000 increase. Meanwhile, the unemployment rate clocked in at 7.3%, which was expected.
No data coming out from the Great White North over the next couple of days, so we can expect risk sentiment to be the major driver of Loonie trading. Keep an eye out for any news out of the euro zone – you never know what might send the markets into a frenzy!
The Loonie started the week on a sour note yesterday as it was unable to hold its ground against the safe haven Greenback. The Loonie was sold-off throughout the day and ended the U.S. trading session with a 36-pip loss at 1.0029.
Market sentiment continued to be at a low point yesterday as investors and traders failed to see signs of relief in the Greek political drama. Political parties remain in disarray, which is hurting the country’s chance of receiving its next round of bailout funds.
No major news report scheduled for release in Canada today so the Loonie’s price action will depend a lot on how the market is feeling. If we don’t see any change in sentiment, or economic data in the euro zone and the U.S. continue to disappoint, the Loonie will probably sell-off again. Let’s see how today’s price action unfolds!
With the lack of releases from Canada, USD/CAD trading took its cues from the Greenback and unfortunately for the Loonie, this meant another day of losses. After opening at 1.0029, USD/CAD trickled higher and finished at 1.0068, marking a 29-pip gain.
Today, we FINALLY have something coming out from Canada, as manufacturing sales figures are due at 12:30 pm GMT. Expectations are that sales grew by 0.4%, which would be a nice change-of-pace from the previous month’s -0.3% decline. If this comes in better-than-expected, it could give the Canadian dollar a nice boost up the charts.
The Loonie’s performance on the charts was still pretty lousy in yesterday. It pared the losses it scored during the Tokyo session and USD/CAD dropped from its 5-week high of 1.0131 to 1.0068. However, the Loonie quickly gave back up the upperhand to the dollar and closed the day with a 59-pip loss at 1.0127.
The lack of economic reports from Canada might’ve once again left the currency vulnerable to risk aversion. But don’t worry Loonie bulls! Perhaps the wholesale sales report, due at 12:30 pm GMT, could boost the comdoll. If you’re looking to go long on the currency, keep your fingers crossed for the actual figure to come in better than the 0.4% forecast. Good luck!
Make that four in a row! With risk aversion reigning supreme, USD/CAD continued to shoot up higher, as it posted its 4[SUP]th[/SUP] consecutive green candle, with the pair closing 63 pips higher at 1.0190. Will we see the pair go for a clean sweep or will Loonie bulls have something to say about that?
Yikes! It looks like foreigners aren’t digging Canadian financial securities as much as they used to! Net foreign securities purchased posted a deficit of 2.08 billion CAD in March, which was way off the expected figure of 9.34 billion. This means that’s Canadians bought more foreign financial securities than foreigners bought Canadian assets.
Meanwhile, wholesale sales growth came in as expected, printing at 0.4%. Still, this was much lower than the 1.5% we saw the previous month.
Looking at our economic calendar, we could be in more for more action on the Loonie as Canadian CPI data will be released at 12:30 pm GMT. Headline and core inflation are expected to clock in at 0.3% and 0.2%, respectively. Both these figures would be lower than last month’s printing of 0.4% and 0.3%. If it appears that inflation remains subdued, it could give the Bank of Canada room to cut rates sometime down the road, which would be bearish for the Loonie.
Oh, Loonie. Sometimes, even positive data just ain’t enough! With markets still neck-deep in risk aversion, the Loonie scored another loss to the dollar. USD/CAD ended Friday’s trading 21 pips higher at 1.0210.
It was reported that inflation pressures rose in Canada in April. The headline CPI figure topped expectations when it printed at 0.4% while the forecast was only at 0.3%. Meanwhile, the core reading which excludes volatile items, printed twice the forecast at 0.4%.
Concerns about a Grexit and a contagion in Europe continued to dominate sentiment. So with our forex calendar blank for reports from Canada today, we could see the Loonie fall victim to risk aversion once more if the negative sentiment continues.
For the first time in six days, the Loonie was able to get one-up on the safe haven Greenback. After opening the day at 1.0224, USD/CAD was sold-off throughout the day, allowing the pair to close the U.S. trading session 54 pips lower at 1.0170.
The G8 summit was what uplifted sentiment. According to the European leaders, they want Greece to remain in the euro zone. In addition, they also talked about ways to support growth in the region.
Canada’s economic cupboard yesterday was completely empty as it was a bank holiday. And today, even though it isn’t a holiday, the calendar has nothing on it too. This means that the Loonie’s price action will probably be mainly determined by market sentiment. If more “good” news comes out of the euro zone, we could see the Loonie gain as well.
So much for bouncing back! The Loonie resumed its selloff against the U.S. dollar yesterday as risk aversion came back to haunt the markets. USD/CAD started the day at 1.0170, jumped to a high of 1.0235 then closed at 1.0219. Will we see more Loonie selling today?
There weren’t any economic reports released from Canada yesterday, leaving the Loonie vulnerable to risk sentiment. It didn’t help the Canadian currency’s cause that fears of an ugly Grexit triggered a selloff among higher-yielding currencies.
Today, the Loonie could have a chance to bounce back if Canada’s retail sales data beat expectations. Core retail sales are expecting a 0.5% increase while the headline figure could show a 0.4% uptick for March. Keep an eye out for the actual release at 12:30 pm GMT!
Due to the disappointing retail sales report and falling crude oil prices, the Loonie experienced another day of defeat yesterday. USD/CAD, which began the day at 1.0219, found itself 23 pips higher at 1.0242 by the end of the U.S. trading session.
The retail sales report for the month of April showed that sales increased by 0.4% just as expected. However, the core version of the report which excludes the sales of volatile items such as automobiles didn’t match up to the market’s forecast. It came in with a 0.1% gain only, just a fifth of what had been initially expected.
Even though Canada’s economic calendar presents nothing of importance today, there are numerous reports from other major economies. that could have an impact on the Loonie. In the euro zone, there are the PMIs. In the U.S., the durable goods orders and initial jobless claims will be released. This means that we should be extra careful trading in the upcoming trading sessions, as these reports could lead to a lot of volatility!
How long can 1.0300 hold? For the third day in a row the Loonie lost ground against the Greenback. USD/CAD shot up to an intraday high of 1.0296 before it capped the day with a 29-pip gain at 1.0271.
The corporate profits report for the first quarter might have done damage to the comdoll after it only showed a 0.1% gain. Remember that it rose by a whopping 9.0% in the fourth quarter of 2011. Of course, it didn’t help that the U.S. initial jobless claims report hinted a strong NFP reading for May.
No other report is scheduled for release today, so you might want to pay close attention to reports in other major economies that could shift risk sentiment!
Good luck in your trades today, kids!
Another day, another loss! For the fourth straight trading day, the Loonie gave up pips to its American counterpart as USD/CAD climbed another 25 pips up to 1.0296. Will the 1.0300 resistance level finally give way today?
Nothing new here! With traders still worried about the possibility of a “Grexit,” the Loonie has been having difficulty finding buyers.
Sadly, it didn’t find support from economic reports as Canada made no substantial releases. And oil prices did little to stoke demand for the Loonie as well, as it merely traded around previous lows last Friday!
For the week ahead, risk sentiment will most likely still be a big factor in Loonie trading. However, you may want to keep an eye out for the current account (due Thursday) and GDP (due Friday) reports, as they may rekindle interest in the Loonie if they print strongly positive results. In the meantime, I suggest y’all monitor developments in the euro zone!
Good luck and happy trading!
Finally, a breather for the Loonie! Thanks to improved risk sentiment in markets, the Loonie was able to put a stopper on its losses. USD/CAD dropped to an intraday low of 1.0220 before it capped the day at 1.0255.
No data was released from Canada yesterday. And with the U.S. traders celebrating Memorial Day, the Loonie was left at the mercy of risk appetite.
Thankfully, the currency gods favoured high-yielding currencies yesterday after a report showing the recent advancement of New Democracy, a pro-bailout Greek party, in Greece’s opinion polls. It increases probabilities that Greece would stay in the euro zone, you see.
Thanks to the positive report, oil prices rose to near $92 per barrel and lifted demand for the oil-related Loonie.
No reports are scheduled for release again today, so you might want to keep tabs on risk sentiment for clues on the Loonie’s performance. Good luck, and good trading, kids!
“Save yo drama for yo mama!” yelled the Loonie yesterday as it got dragged down by euro zone debt concerns but managed to recoup its losses by the end of the day. The Canadian currency even ended positive against the Greenback, with USD/CAD closing 10 pips below its 1.0240 open price.
What’s surprising about the Loonie’s recovery is that Canada didn’t even release any economic reports that could’ve provided support for the currency yesterday. Talk about relying on sheer fundamental strength! The Loonie could also thank the positive outlook in China, which somehow kept the comdolls afloat in yesterday’s trading.
Today, Canada is set to release a couple of minor inflation reports, namely the RMPI and IPPI. That’s the raw materials price index and the industrial product price index for y’all! Although these releases aren’t likely to influence the Loonie’s price action, it’d be helpful to take note of the results since these could hint at how the overall CPI figure would fare. Keep an eye out for those at 12:30 pm GMT!
Et tu, Loonie? Even the Canadian dollar wasn’t spared from yesterday’s massive sell-off as risk aversion took USD/CAD back up the charts. The pair undid its recent slide to post a 63-pip gain and end at 1.0292.
Yesterday’s inflationary reports didn’t help the Loonie’s cause either, as they both printed below expectations. The RMPI came in at -2.0% (versus -1.1% forecasts), while the IPPI clocked in at 0.0% (versus 0.1% forecasts).
Furthermore, oil prices took a nasty spill yesterday, giving traders one more reason to sell the commodity-related Loonie.
Up ahead, we have the Canadian current account due at 12:30 pm GMT, and survey says that its deficit will widen from 10.3 billion CAD to 11.0 billion CAD. Can better-than-expected results stop the Loonie’s sell-off? Hmm… Probably not! The markets seem to be trading on risk sentiment lately, and unfortunately, it has been working against the Loonie!
The Loonie lost ground against the Greenback for the third straight day as risk aversion just wouldn’t leave the markets. USD/CAD jumped to a high of 1.0367 before ending the day at 1.0328, 46 pips up from its day open price. Will the Loonie’s losing streak continue today?
Weaker than expected U.S. data, combined with the usual downbeat outlook for the euro zone, kept risk aversion in the markets yesterday and forced the Loonie to chalk up more losses. Not even Canada’s stronger than expected current account balance was able to save the Loonie! The report showed a 10.3 billion CAD deficit for the first quarter, larger than the previous period’s 9.7 billion CAD shortfall but smaller than the estimated 10.9 billion CAD deficit.
Canada is set to release its monthly GDP figure at 12:30 pm GMT and show a 0.3% rebound for March. This could translate to a 1.9% reading for its first quarter GDP. A higher than expected figure could put an end to the Loonie’s losing streak while a weak reading could extend it. Don’t forget to keep an eye out for the U.S. NFP release also if you’re trading USD/CAD!