It was a good day for the comdoll bears yesterday when risk aversion drove the high-yielding currencies lower against the Greenback. USD/CAD went up to as high as .9637 in the U.S. session before it finished the day 51 pips higher than its open price at .9589.
With mixed economic reports popping up in Canada, who could blame the Loonie traders for following risk sentiment? Canada’s foreign securities purchases report printed at 15.40 billion CAD in May with April’s figures also revised upwards to 8.52 billion CAD. Meanwhile, the new motor vehicle sales clocked in a 6.1% decline in May after showing only a 1.1% fall in April.
Will the Loonie bulls take charge today? The Bank of Canada is set to release its interest rate statement for July. As Forex Gump pointed out in his BOC article over the weekend, no one really expects the central bank to hike its rates. Still, it would be interesting to look for signs on just how long the BOC will wait before it increases its rates again. The BOC will release its report today at 1:00 pm GMT after the leading index report prints out at 12:30 pm GMT.
Good luck in your trades today, homies!
Uhuh! You know what it is! Loonie power, baby! The Canadian currency was on its A-game yesterday as the BOC made its rate statement. As a result, USD/CAD broke below support at the weekly open to post an 81-pip slide. What did the central bank say to get Loonie bulls all riled up?
“Sooner rather than later!” is what the BOC basically said with regards to rate hikes. Central bankers expressed their desire to keep inflation in check while showing optimism for the economy, which is expected to stay on track to grow this year. Some say a rate hike may even come as soon as October!
But there are still certain risks involved. Developments in the U.S. and euro zone present threats to the global economy. And as Forex Gump has said in the past, the BOC will want to be careful about widening rate spreads between the U.S. and Canada, especially since the Loonie is already very strong.
If you still have questions in that noggin if yours, worry not! The BOC may be able to shed some light on whatever’s troubling you as its set to publish its monetary policy report (2:30 pm GMT) and hold a press conference (3:15 pm GMT) later in the day. If the central bank dishes out more clues as to how it’ll act in the coming months, it could just trigger another sharp move in USD/CAD, so it’s best to stay alert when these events take place.
Back-to-back, baby! The Loonie powered on for the second day in a row yesterday when Canada’s positive economic reports jived with a surge of risk appetite in markets. USD/CAD even dropped to an intraday low of .9457 before settling with a 34-pip drop at .9474.
The positive wholesale sales report might have started the ball rolling for the Loonie bulls yesterday when it surprisingly printed a 1.0% growth in May, which is way better than the 0.1% decline we’ve seen in April.
Meanwhile, the BOC’s statement and press conference also moved the Loonie pairs, but not as much as the interest rate decision has. As I mentioned yesterday, the [BOC](http://www.babypips.com/school/interest-rates-101.html) is expecting inflationary pressures to stay above the expected 3% with an upside risk due to rising commodity prices that is being fueled by rapid economic growth in emerging nations.
We still have to remember though, that economic growth in the [U.S.](http://www.babypips.com/school/united-states-of-america.html) and the euro zone is still on the rocks. As these nations are some of Canada’s largest trading partners, the threats to economic growth is enough for the BOC to think twice about raising its interest rates anytime soon.
The economic boards are empty in Canada today, but make sure you keep an eye out for risk sentiment! The high-yielding [comdoll](http://www.babypips.com/blogs/playing-with-comdolls/) just might take a hit if risk goes off!
Score another one for the Loonie! For the third straight day, the Loonie was able to edge higher versus the Greenback. USD/CAD closed the U.S. trading session at .9453, 21 pips lower from its opening price that day.
The reason for the Loonie’s advance yesterday was none other than risk appetite. Thanks to euro zone leaders finally agreeing on a bailout package for Greece, the market grew optimistic about the regions prospect and bought up higher-yielding currencies like the Loonie across the board.
Today, the focus will turn to Canada’s consumer price index (11:00 am GMT) and retail sales report (12:30 pm GMT).
The market expects the CPI to print a reading of -0.2%, opposite the 0.7% increase seen the month before. The core version of the report which excludes the prices of volatile items such as alcohol and energy is predicted to remain flat.
As for the retail sales report, the market’s forecast is for a 0.3% fall for the headline and a 0.2% increase for the core. The core version excludes automobile sales in its computation due to the volatile nature of automobile sales.
Given the strength of the Loonie in the last couple of weeks and the overall case of risk appetite in the market, better-than-expected figures could lead the Loonie to rally across the board again.
The Canadian dollar bookmarked the week with a loss, as inflation data came in surprisingly week. USD/CAD bounced off key support at .9450, and closed 37 pips higher for the day at .9454. Could this be a potential bottom for the Loonie?
Thanks to lower than expected CPI figures, the Canadian dollar gave back much of its gains on Friday. The monthly CPI report showed a decline in prices of 0.7%, bringing the annualized rate down to 3.1% from 3.7%.
Take note, the Bank of Canada expressed willingness to raise interest rates later this year, with inflation being one of its main concerns. However, they are also wary about future growth in the Great White North and if inflation continues to tone down, it could give the central bank incentive to chill out first on interest rates.
Looking ahead, no major reports coming out till Friday, when GDP data will be available. In the meantime, the Loonie will probably trade to the beat of risk sentiment, so make sure you stay on your toes and know what’s driving the market!
Hooray for the Loonie! After losing ground to the U.S. dollar last Friday, the Canadian currency was able to rebound from its losses as USD/CAD closed almost 30 pips below its .9484 open price. Can it go for more gains today?
Although Canada didn’t release any economic reports yesterday and even though oil prices slipped slightly, the Loonie was able to take advantage of the U.S. dollar selloff that took place. Apparently, U.S. lawmakers still haven’t reached an agreement regarding the deficit reduction plan and it doesn’t help that they’re running out of time. This made traders worry that the U.S. won’t be able to come up with a deal by August 2 and that the rating agencies would find it necessary to downgrade U.S. debt.
I’d keep a close eye on any updates on this debt deal if I were you because there aren’t any reports due from Canada today. Also, make sure you check out the upcoming economic data from the U.S. if you’re trading USD/CAD.
And just like that, the Loonie’s at a new three-year high! The Canadian currency had its way with the Greenback yesterday as U.S. debt ceiling concerns dragged USD/CAD down. The pair finished 32 pips lower, hitting levels untouched since November 2007. How long can it keep this up?
Lately, many analysts have been treating the Loonie as a safe haven currency. To tell you the truth, I don’t disagree. It’s been rising strongly in recent weeks, and has been a popular choice among investors due to Canada’s reliable central bank (the Bank of Canada), relatively orderly finances, and political stability.
Though we don’t have any Canadian economic reports coming out today, we could continue seeing strong movements on USD/CAD, especially if new developments regarding the U.S. debt ceiling take place. Look for the Loonie to continue marching up the charts if the U.S. doesn’t make progress towards reaching an agreement.
Boo! Risk aversion reared its ugly head back into the markets yesterday and scared investors out of higher-yielding currencies such as the Loonie. USD/CAD ended the day 60 pips higher at .9489 after it failed to trade below support at .9430.
As equities weakened,U.S. debt ceiling concerns lingered, and Greece got another downgrade, Loonie bulls had very less reason to rally especially since there were no economic reports from Canada.
Our forex calendar is once again blank for the Loonie today, so make sure you get a good feel of market sentiment, ayt? Remember that the currency usually rallies when risk appetite picks up.
Make that back-to-back! For the second day in a row, the Loonie took a hit as a cloud of risk aversion continued to hang over the markets. Will we get a silver lining today?
No reports from Canada yesterday, but today’s a different story! Canada’s monthly GDP report is slated to show a 0.1% rise for the month of May. Expect fireworks on USD/CAD when this report comes out at 12:30 pm GMT because U.S. GDP will be released at the same time!
If the U.S. and Canada print divergent results (i.e. Canada prints better than expected while the U.S. prints worse than expected), we could see a very sharp drop in USD/CAD. I wouldn’t miss this for the world!
The Loonie’s on a roll baby! For the first time in over a month, USD/CAD posted three consecutive gains, as the pair closed 39 pips higher to end at .9555. Could this be the start of a bullish run on USD/CAD, or is this merely a retracement?
The reason why the Canadian dollar ended up being the biggest loser even with all the dollar weakness we saw on Friday was due to poor GDP figures. Just like it’s neighbor Uncle Sam, the Great White North received a dismal GDP report, as month-on-month growth dropped by 0.3%, after it was expected to come in at 0.1%. For those of you keeping count, this marked the biggest drop in GDP growth in over 2 years! Yikes!
Now that it seems like the Canadian economy is struggling, it’ll be interesting to see how the Bank of Canada will respond. If we see a trend of dismal growth, it would certainly hold the bank back from raising rates any time soon.
No biggies on deck till the end of the week, but that doesn’t mean we won’t see any explosive moves on USD/CAD this week. For the next few days, watch out for any developments in the U.S. debt ceiling issue, as well as any shifts in risk sentiment. As my momma always used to say, things can change on a dime, so make sure you’re ready for it!
The Loonie found itself holding on to the short end of the stick yesterday as traders flocked to the safety of the dollar and the yen after the proposed U.S. debt deal was unable to calm the worries over the financial situation of the debt-ridden U.S. USD/CAD closed the U.S. trading session at .9571, 35 pips higher from its opening price that day.
Canada’s forex calendar for today is completely empty so the Loonie will have to rely on data from other major economies for volatility. Pay special attention to the Core PCE index from the U.S. at 12:30 pm GMT, as the report is the Federal Reserves preferred measure of inflation.
That’s all there is for the Loonie today. Good luck trading homies!
Make that 5 in a row for the Loonie! For the fifth consecutive day, USD/CAD closed higher as traders continued to unwind their position in higher yielding assets. The pair rose 37 pips to end the day at .9601. Can the Loonie bulls keep the party going and keep shufflin’ up the charts?
Can you guess why USD/CAD rose yesterday? I’ll give you a clue: two words.
If you guessed risk aversion, then ding, ding, ding, you are correct! Unfortunately, I have no prize for you, but you can take solace in the fact you are on top of your fundamentals game!
On a more serious note, with no data coming out until Friday, the Canadian dollar has no hardcore data releases to potentially give it a boost. For the meantime, shifts in risk sentiment should continue to drive Loonie trading.
Loonie, where you at? The currency extended its losing streak against the dollar to a sixth day when USD/CAD closed the day 26 pips higher at .9627.
Our forex calendar was blank for reports from Canada yesterday but we had plenty of economic data from the U.S. Unfortunately for the Loonie, the mixed reports hinted slowing growth in Canada’s largest trading partner which consequently had investors speculating that the Canadian economy would also lose its hustle.
With that said, we’d probably see market sentiment dictate the Loonie’s price action today given that we still don’t have anything on tap from Canada. Make sure you keep tabs on the economic reports due from the Loonie’s counterparts, ayt? Peace!
Let’s get ready to rumble! The Loonie was caught in a crossfire yesterday as the Bank of Japan actively weakened its currency against the Greenback. As a result, the scrilla gained against most of its major counterparts and pushed USD/CAD to a three-week high of .9796 where it closed.
Though there were no economic reports released from Canada, the Loonie and most of Happy Pip’s comdolls lost heavily against the Greenback. Now markets are wondering how long the dollar rally will last. Remember that a couple of weeks ago the comdolls steadily posted gains against the scrilla.
I guess we’ll just have to wait for more details on the U.S. and Canadian economy to take hints at where this pair would go. Canada is set to release its employment figures today at 11:00 am GMT, which is only a few tick tocks away from the big NFP report in the U.S. Be careful in trading these reports, will ya? Canada’s economy is highly dependent on the U.S. economy, so the correlations of the U.S. data and the Loonie’s price action might not be as consistent as the other comdolls.
Good luck in your trades today, homies!
Boing, boing! USD/CAD just bounced around the .9800 handle on Friday as the much-anticipated jobs report from Canada was released. Good thing Loonie bulls were able to hustle some muscle before the week came to an end and USD/CAD closed 15 pips below the day open at .9780.
It was reported that the Canadian economy only added 7,100 jobs in July and disappointed the market’s forecast which was for an increase of 17,700. Digging further into the report, I discovered that job growth in the government and education sectors lagged during the month.
On the other hand, the unemployment rate ticked lower during the month to 7.2% when analysts expected it to remain at 7.4%. The mixed figures probably hint that a number of Canadians exited the labor pool by stopping to look for work.
Also on our roster of economic reports from Canada on Friday was the building permits report for June which showed that construction picked up during the month by 2.1%, partly erasing the -4.8% decline we saw the month prior.
Too bad the Loonie had to end the week with bad news. The Ivey PMI report for July showed that business activity contracted during the month when it printed at 45.4. It disappointed the market consensus which was for a modest pullback to 61.5 following the 68.2 reading we saw for June.
Our forex calendar is blank for reports from Canada today. With that said, make sure you get a good feel of market sentiment. Keep in mind that the Loonie usually rallies in times of risk appetite! Also be on your toes for what traders are saying about S&P’s move to downgrade U.S. debt. We may just see broad dollar-selling today.
While not as excessive as the Aussie, the Loonie received a beating from the Greenback yesterday. USD/CAD edged lower throughout the day and found itself trading 80 pips lower from its opening price by the end of the U.S. trading session.
It’s funny how these things work out. Give the U.S. sovereign debt a downgrade, and investors buy up the domestic currency due to risk aversion! The S&P’s downgrade actually increased the appeal of the safe haven Greenback!
No important data release from Canada yesterday, but we’ll be seeing the country’s housing starts report later at 12:15 pm GMT. The market is expected a 194,000 figure, which is slightly lower than the 201,000 (revised up from 197,000) seen last month. If the actual figure comes in better than expected, we could see the Loonie recuperate some of its losses.
Parity! USD/CAD just hit the 1.0000 handle after a strong rally yesterday, but that major resistance level held quite well. Let’s take a look at the upcoming data to find out where the Loonie is headed today.
But first, here’s a quick glance at the freshly released economic reports from Canada. Housing starts came in better than expected, printing a 205K figure for July, better than the estimated 194K reading. Aside from that, the June figure enjoyed a nice upward revision from 197K to 201K.
Canada didn’t release any other reports for the rest of the U.S. session but the price action got a tad more exciting when the FOMC made their interest rate statement. To find out how all that panned out, check out my U.S. economic commentary!
There aren’t any economic reports due from Canada today so expect the Canadian dollar to groove to the tune of risk sentiment. Happy trading, fellas!
After USD/CAD got rejected at resistance at the .9950 minor psychological handle, the pair just traded down to end the day 35 pips below its open price at .9883. Victory for the Loonie!
The comdoll was finally able to take a breather from the advances of the bears when risk appetite picked up yesterday. From what I’ve heard, equities and also oil (Canada’s biggest export) rallied in yesterday’s trading which might have helped boost the Loonie despite the disappointing trade balance report for June.
Analysts had predicted that the report would show a 900 million trade deficit for the month. However, the actual figure printed a deficit of 1.6 billion CAD. Yikes!
There are no economic reports due from Canada today, so make sure you get a feel of market sentiment ayt? If risk appetite is still up, the Loonie may just end the day with a win!
The Canadian dollar took a slow and steady slide down the charts last Friday as uncertainty gripped the markets. With the U.S. economy on shaky ground, the Canadian dollar couldn’t lift off, and so USD/CAD stepped up 24 pips to .9907.
Canada didn’t publish any big reports last Friday, and the other comdolls managed to gain ground against the U.S. dollar… so then why did the Canadian dollar fall?
Blame it on the U.S.! As you all know, Canada is practically joined at the hip to the U.S., so its very easy for its southern neighbors’ economic problems to spill over the border. With so much uncertainty surrounding the U.S. economy, traders have begun to treat even the Canadian dollar cautiously.
In the week ahead, risk sentiment will probably continue to dictate price action for the Canadian dollar, at least until the CPI report comes out on Friday. So until then, be sure to keep risk sentiment in check! Peace!
Ha! Who’s the loser now? The Loonie murdered the Greenback in the charts yesterday when a burst of risk appetite and a positive report from Canada dragged USD/CAD 76 pips down to .9798, which is only a few pips away from its intraday lows. Boo yeah!
So what spurred on the Loonie bulls yesterday? Well, if you’ve been watching the markets closely then you’ll know that risk appetite was all over the streets despite a bearish manufacturing report from the U.S., Canada’s largest trading partner.
Speaking of reports, Canada’s new motor vehicle sales clocked in a 10.8% growth in June, which was a heck lot better than the 6.1% decline in May. What’s more, oil prices also inched by at least $2.50 higher!
Don’t launch a Loonie party too early though. Today at 12:30 pm GMT we’ll see Canada’s manufacturing sales report for June. The data showed a 0.8% decline in May, but a higher figure just might push the Loonie higher in the charts.