Just when it looked like the Loonie was in for another round of losses against the Greenback, the Canadian currency pulled up for a strong finish and scored a win. Way to go, lil’ fella! USD/CAD opened at .9921, hit a high of .9978, before closing at .9852. How will the Loonie fare today?
Canada and the U.S. didn’t release any big reports yesterday, leaving the Loonie vulnerable to swings in risk sentiment. Fears of a possible Greek default kept traders away from higher-yielding assets during the Asian and London trading sessions, but safe-haven buying eased later on. This was spurred by news of China pitching in and thinking of helping European countries struggling with debt problems.
Today, only the capacity utilization rate is due from Canada and this report isn’t expected to have a huge impact on Loonie price action. Besides, the report could show that the rate held steady at 79.0% for the second quarter of this year. But if we see a significant increase in capacity utilization, which would imply that producers are nearing full capacity and could respond by raising prices, there could be higher inflationary pressures for Canada. Stay tuned for the actual release at 12:30 pm GMT.
Don’t forget that the U.S. is set to release a bunch of top-tier reports today. Make sure you check out my U.S. economic commentary as well!
It stops at two! The Loonie put an end to its winning streak as it failed to strengthen against the Greenback during yesterday’s trading. After opening at .9853, USD/CAD quickly rose up above .9900 and pretty much chilled above this level for the rest of the day. When all was said and done, it closed at .9904 to record a 51-pip gain.
Sadly, the only report from Canada turned out to be a bit of a bummer. It was revealed that the capacity utilization rate in Q2 2010 slipped from 78.9% to 78.4% instead of firming up to 79.0%. After these disappointing figures, the markets took it upon themselves to sell off the Loonie, sending USD/CAD back up the charts.
But truth be told, its losses could’ve actually been worse had it not been for the bit of good news from the euro zone that helped boost risk appetite. With risk sentiment firming up once again, we may actually witness the Loonie regain control of USD/CAD today.
That is if today’s manufacturing sales report doesn’t drag it down. Forecasts have July printing a growth of 1.3% in manufacturing sales, reversing the 1.5% decline in June. Should actual results exceed expectations, it could spark a mini Loonie rally, so be sure to catch the report at 12:30 pm GMT!
Thanks to a rebound in risk appetite, the Loonie was able to end the day with a win against the safe-haven Greenback. USD/CAD opened at .9907 then fell 65 pips to close at .9842. Can the Loonie hold on to its gains today?
Canadian data released yesterday showed upbeat figures, with manufacturing sales rising by 2.7% in July. This was more than twice as much as the expected 1.3% increase for the month. Aside from that, the June figure was revised upwards to show a 1.3% decline instead of the 1.5% drop initially reported. However, motor vehicle sales was a bit of disappointment as it showed a 6.2% decrease for July, erasing part of the 10.8% rise seen last June.
Despite that, traders seemed to be in the mood to gobble up higher-yielding currencies yesterday when three central banks decided to come up with a coordinated solution for the euro zone debt mess. Read all about it in my euro zone economic commentary!
Today, Canada is set to report its foreign securities purchases data for July. After landing at a disappointing -3.46 billion CAD in June, international purchases of Canadian securities could show a rebound for July. If the report prints a positive figure, the Loonie could have a reason to rally. Otherwise, another negative reading could force the Canadian dollar to return its recent gains. Keep an eye out for the actual data due 12:30 pm GMT.
The Loonie finished the week on a high note as risk appetite and profit-taking on the Greenback worked to its advantage. As a result, USD/CAD posted its second daily slide in a row, falling from .9840 to .9791. Will it continue to fall this week?
The markets finally summoned the courage to take risks again as equities and commodities surged across the board last Friday. Not to be left behind, the comdolls joined in on the rally as well.
Adding to the good vibes, the lone report from Canada, which featured foreign securities purchases in July, showed an improvement from a deficit of 2.45 billion CAD to a surplus of 11.78 billion CAD. According to the report, a record amount of Canadian T-bills were bought as demand for these securities rose on the back of global uncertainty.
In the week ahead, the reports to keep an eye out for are the CPI and retail sales reports. CPI data for August is due tomorrow at 11:00 am GMT while July’s retail sales figures will be available on Thursday at 12:30 pm GMT. Until then, keep risk sentiment in check, kiddos!
With the markets dumping higher yielding assets, the Canadian dollar took an absolute beating on the charts. After opening at .9781, USD/CAD closed 117 pips higher to finish the day at .9898. Will we see more of the same today?
For today, we’ve got the leading index and wholesale sales data coming out at 12:30 pm GMT. The leading index is projected to have increased by another 0.2% last month, which would equal the growth from the past two months. Meanwhile, wholesale sales are seen to have increased by 0.7% in July, which would be a nice improvement from the mere 0.2% rise the month before.
However, I’m not too sure how big of an effect these reports will have on Loonie trading. I still feel that risk sentiment will be the major driver of the markets. So for now, keep an eye out for any developments, especially with Greece, as that should continue to be the dominant focus of the markets for the rest of the week.
Due to disappointing data from Canada, the Loonie was unable to post some gains over its major currency competitors yesterday. The Loonie gave up 21 to the safe haven Greenback and 44 pips to the low-yielding yen. With the negative forecast on Canada’s CPI, will we see the Loonie continue to fall?
Canada’s leading index, which was released yesterday, failed to meet the 0.2% forecast and printed a big fat 0. The previous month’s figure was also revised down to 0.1% from 0.2%. Similarly, last month’s wholesale sales report was revised lower to 0% from 0.2%.
Today could be another down day for the Loonie as Canada’s CPI for August is predicted to have been lower than the figure in July. Scheduled to come out at 12:30 pm GMT, the CPI is expected to print a 0.1%. Meanwhile, the core version of the report that excludes the prices of volatile items like gasoline in its computation is also anticipated to rise by a mere 0.1%.
Whether the Loonie will be able to regain its losses will highly depend on the results of the report. A higher-than-expected result will help the Loonie rally while a weaker-than-expected figure may cause the Loonie to sell-off.
So much for resistance at parity! Thanks to a wild run of risk aversion in the markets, the Loonie broke through the magical 1.0000 mark. The pair closed at 1.0058, marking an impressive 122-pip gain for the day. Will USD/CAD continue to make new highs, or could we see a retest of parity today?
CPI figures came in stronger-than-expected, with headline and core figures printing at 0.4% and 0.3% respectively, after it was predicted that both would come in at 0.1%. Not only did this show that inflation jumped up last month, but it also brought year-on-year inflation to 3.1%. If this continues, it could give the Bank of Canada reason to consider raising rates later this year.
The reason why USD/CAD broke through parity though, was due to risk aversion that resulted from the aftermath of the FOMC meeting. To know more about Operation Twist and what the Fed plans to do, make sure you take a look at my U.S. writeup and educate yourself!
Today, we’ve got retail sales data coming in at 12:30 pm GMT. While headline retail sales is projected to have dropped by 0.2% in the past month, core sales, which doesn’t include Big Pippin’s snazzy whips, is seen to have jumped up by 0.2%. If these figures come in much better-than-expected, we could see the Loonie head back to retest the 1.0000 handle.
Boy do I feel bad for everyone who shorted the Loonie yesterday! USD/CAD continued to trade above parity as risk aversion hit the markets. The pair ended the day 216 pips above its opening price at 1.0057. Would a virtual hug from Pip Diddy help?
Aside from talks about slowing growth in the [U.S.](http://www.babypips.com/school/united-states-of-america.html) and China, the worse-than-expected [retail sales](http://www.babypips.com/forexpedia/Retail_Sales) report from [Canada](http://www.babypips.com/school/canada.html) also didn’t bode well for Loonie bulls. According to Statistics Canada, consumer spending contracted by 0.6% in July and disappointed the market’s forecast which was for a more modest decline of 0.2%. Excluding volatile items such as food and energy, the core retail sales report printed at 0.0% and fell short of the 0.2% consensus.
Will G20 officials be able to soothe market participants?
If you’re planning to go long on the Loonie, you better hope so. Keep tabs on updates about their meeting, ayt?
The Canadian dollar avoided another bloodbath against the Greenback last Friday when the G20 meeting eased market fears a bit. USD/CAD only went up by 22 pips to 1.0295 after it had climbed by as much as 216 pips on Thursday. Phew!
No reports were released from Canada last Friday, but traders paid attention to the meeting of the G20 leaders, who put up a united front and vowed actions against the weakening global economic growth. Heck, BOC Governor Mark Carney even stepped up his game and called for an expansion in the EFSF!
But how long will the good vibes help the comdolls? Canada is set to release its raw materials price index report on Thursday at 12:30 pm GMT and its big GDP report on Friday also at 12:30 pm GMT. If Canada continues to release disappointing reports like what we saw last week, then we might see USD/CAD climb higher in the charts.
More than the reports though, you should also keep in touch with any reports on the euro zone debt crisis. With the FOMC statement over, the focus might return to troubles in the euro zone. If the European leaders fail to produce any concrete plans by this week, then we might look at another round of risk aversion in the markets.
Boy was price action on USD/CAD intense yesterday! After reaching a high of 1.0386, the pair traded back down to find support at its opening price of 1.0280. Dollar bulls gave it one more push but it seems like they didn’t have enough fuel for the pair to tap a new high. USD/CAD then just settled at 1.0252 at the day’s close.
Our forex calendar was blank for reports for the Loonie yesterday, but I have a feeling that the rebound in oil (Canada’s biggest export) back above the 80 USD per barrel mark helped the currency end its 6-day losing streak against the dollar.
With that said and given that we still don’t have any economic data from Canada today, it would be a good idea to keep tabs on the commodity as the Loonie usually mimics its moves. Also get a feel of market sentiment and keep in mind that the currency usually rallies when risk appetite picks up. Good luck!
Thanks to positive news from euro zone, the Loonie was able to edge higher against other major currencies yesterday. It was able to steal 81 pips from the safe haven Greenback and 89 pips from the low-yielding yen.
Market sentiment received a huge boost yesterday when Slovenia’s Parliament approved the expansion of the European Financial Stability Facility (EFSF). After that, German Chancellor Angela Merkel went on the wires to say that she would most probably be able to get the majority of her coalition to vote in favor of an expansion of an EFSF too.
No tier 1 data scheduled for release by Canada today, so the Loonie will likely gets its direction from external news like yesterday. Keep a close eye on the happenings in the euro zone, as they will be the ones to either make or break the Loonie today.
The Loonie bid sayonara to its recent gains yesterday as USD/CAD climbed from its 1.0204 open price to close at 1.0326. It turns out the Loonie’s rebound the other day was merely a retracement! Where could it be headed today?
Canada didn’t release any economic data yesterday but risk aversion from weak U.S. durable goods reports caused the Loonie to lose ground. It didn’t help that crude oil slid by more than 4%, marking its sharpest drop since 2008.
Today, only a couple of medium-impact inflation indicators are due from Canada. These are the raw materials price index (RMPI) and industrial product price index (IPPI). The RMPI is expected to show a 1.9% drop while the IPPI could post a 0.4% downtick for August. Stay tuned for those figures due 12:30 pm GMT because weak data from Canada could push USD/CAD even higher.
No thanks to positive economic data from Uncle Sam, its next door neighbor, the Loonie was unable to hold its ground versus the Greenback. USD/CAD, which had started out at 1.0326, found itself sitting at 1.0364 by the end of the day.
While the U.S. Pending Home Sales, Final GDP figures, and Unemployment Claims all surprised to the upside, Canadian data failed to impress. The RMPI, or raw materials price index, showed a whopping 3.2% decline, significantly worse than the 1.9% fall initially expected. It was the fourth straight time the RMPI came in below forecast.
Today, the Loonie could receive a boost, depending on the result of the GDP report that’s scheduled for release at 12:30 pm GMT. The market is expecting a 0.3% growth, and any figure that goes above this could give the Loonie a chance to recuperate some of its losses.
Better-than-expected GDP? Meh. Despite a positive GDP report, the Loonie failed to attract currency bulls amid the risk aversion in markets. USD/CAD easily shot above its intraweek highs and closed 117 pips above its open price.
Last Friday Canada’s GDP clocked in a 0.3% growth in July after rising by 0.2% in June. Apparently, the increase in growth can be attributed to improved manufacturing, wholesales, and transportation services data. Still, the positive report wasn’t enough to boost the Loonie, not when fears of debt contagion in the euro zone and a general sense of risk aversion continue to loom over markets.
Let’s see if Canada’s economic reports this week will be able to give the comdoll a boost. All the action is concentrated in the later part of the week with Canada’s building permits due on Thursday at 12:30 pm GMT followed by the IVEY PMI at 2:00 pm GMT. Then, on Friday at 11:00 am GMT we’ll also get hold of Canada’s employment figures.
Of course, you must also pay attention to risk appetite in markets as it can weigh more heavily in the Loonie’s price action.
With no economic releases to give it direction, the Canadian dollar just went with the flow yesterday and ended lower as risk aversion swept the markets. As a result, USD/CAD hit a new one-year high and finished 14 pips higher at 1.0512.
Just like its comdoll brethren, the Canadian dollar was weakened by yesterday’s bout of risk aversion. With the markets focused on the euro zone’s inability to come up with a solution to its debt situation, traders have been cutting back on their holdings of risky assets.
Unfortunately, the Canadian economic report drought will continue today. In the meantime, if you’re planning to trade USD/CAD, check out the heavy hitters that the U.S. will be releasing later in the day. All you need to do is take a look at our awesome economic calendar, and you’re all set! And of course, don’t lose sight of risk sentiment. With the way the markets sold off yesterday, it’s likely we’ll see bearish momentum carry through today. Good luck, fellas!
Not so fast, Loonie bears! Just when we thought that USD/CAD was in for even bigger gains yesterday, currency bulls stepped up and bought the comdolls on a relief rally. USD/CAD found resistance at its 1.0658 intraday high before it fell back and closed only 38 pips higher than its open price.
No reports were released from Canada yesterday, but whispers of a possible agreement on the Greek debt crisis encouraged a relief rally, which motivated the currency bulls to buy up high-yielding currencies like the comdolls.
Canada won’t be releasing any economic reports again today, but watch out for any big-hitting reports coming up from the other economies! But if you don’t have any clue yet on which report to trade, check out our swanky economic calendar!
Let’s go, Loonie, let’s go! Thanks to the rebound in risk appetite, the Canadian dollar was able to score some gains against the Greenback yesterday. USD/CAD closed right smack at the 1.0400 handle, 150 pips below its 1.0550 open price.
Investors were back to their risk-taking selves yesterday, pushing oil prices up by nearly 5%. The risk rally was probably a result of better than expected ADP employment data and ISM non-manufacturing PMI from the U.S. since Canada didn’t release any top-tier data then.
Up ahead, Canada is set to report its building permits data at 12:30 pm GMT today. The report could show that building permits jumped by 0.6% for August, after rising by 6.3% in July. Bear in mind that the report has been printing better than expected figures for the past three months and if this good streak continues, the Loonie could be in for more gains.
Later on, Canada’s Ivey PMI will be released at 2:00 pm GMT. This could show that manufacturing conditions improved in September as the index is expected to climb from 57.6 to 58.2. Keep an eye out for the actual figure because if it misses the consensus, the Loonie could be forced to return its recent gains.
The Canadian dollar piggybacked on the coattails of risk appetite yesterday, allowing it to buck some earlier losses and not-so-encouraging data to finish ahead of the Greenback. After hitting an intraday high at 1.0480, USD/CAD fell 100 pips and found itself trading below the 1.0400 handle by the end of the day.
Building permits fell by a ridonculous 10.4% in August, way off the 0.6% growth that was expected. This was also a complete reversal from the 6.3% increase we saw in July.
Meanwhile, the Ivey PMI printed at 55.7, which was slightly higher than the forecasted 54.8 figure. However, the employment component completely disappointed, coming in below the 50.0 line-in-the-sand mark for the first time in 18 months, indicating weakness in the manufacturing industry’s labor market.
Today, we get more juice on the Canadian labor market, as employment figures will be released at 11:00 am GMT. Expectations are that 15,200 jobs were added to the economy last month, which would be a nice improvement from July’s dismal figure of 5,500 lost jobs. Watch out though, because another negative figure may lead to a Canadian dollar sell off!
Last Friday was a topsy turvy day for the Loonie as it was thrown this way and that by economic reports and risk sentiment. USD/CAD dipped to a low of 1.0236 before shooting back up and ending the day at 1.0384. What happened that day?
Strong Canadian jobs figures boosted demand for the Loonie during the U.S. session as Canada reported that its jobless rate dropped from 7.3% to 7.1% in September. They also boasted of higher than expected hiring for the month, with its employment change up by 60.9K, roughly four times as much as the predicted 15.2K increase. It was more than enough to erase the 5.5K decline in hiring seen last August, helping ease some fears that the Canadian economy could also fall into recession. Phew!
The U.S. also printed better than expected employment figures, adding another kick of risk taking. However, risk sentiment took a turn for the worse when credit rating agency Fitch announced a downgrade of both Spanish and Italian debt ratings. Word through the forex grapevine is that Fitch was growing concerned about the intensification of the euro debt crisis and the downward revision of Spain’s growth prospects. For more details on the downgrade, y’all better check out my euro zone economic commentary.
This week, Canada is set to release a couple of housing reports and its trade balance during the latter half of the week. The housing starts data due tomorrow 8:15 am GMT could show that new residential buildings being constructed rose to 187K in September from 185K in August. Then, on Wednesday, the new housing price index could show a 0.1% uptick in house prices for August. Higher than expected figures for these housing reports would be good news for the Canadian economy since those would signal increased hiring, spending, and investment in similar industries.
Then, on Thursday, Canada will report its trade balance for August. The report could show that the deficit widened from 0.8 billion CAD to 0.9 billion CAD during the month, implying slower export industry activity. But if the actual figure shows a smaller deficit or even a trade surplus, we might be in for a strong Loonie rally. Stay on your toes!
Not one to get left behind, the Loonie joined yesterday’s risk rally and climbed up the charts. As a result, USD/CAD dropped 141 pips to close at 1.0263. Will the Loonie put up similar gains today?
Even though Canada was busy celebrating a bank holiday, we saw a lot of action from the Loonie yesterday. Thanks to improved risk appetite and a sharp rally in oil prices, it had an easy time finding buyers.
As risk sentiment continues to improve, it’ll be interesting to see if the Loonie can sustain its rise. A positive figure from today’s housing starts report could give it a boost. The annualized number of housing starts is expected to have risen from 185,000 to 187,000 last month. Should September’s actual results exceed forecasts, it could spark another Loonie rally, so be sure to tune in at 12:15 pm GMT!