Make that two for two! Thanks to improved risk appetite, the Canadian dollar edged higher versus the dollar, marking its second victory for the week. USD/CAD closed at 1.0083, 44 pips lower on the day.
We have nothing on the economic calendar for today, so for now, it would be best to keep an eye out on the developments in the Italian and Greek situations. This will most likely be the major driver of euro trading today, so stay on your toes and stay tuned!
The Canadian dollar got a nice boost from housing market data, as housing starts came in at 208,000, much higher than the projected 198,000. In addition, the previous month’s pace was revised up from 206,000 to 209,000. This indicates that the housing market is being resilient, which could lead to job hiring and spending later on.
Also, the Canadian dollar got high off black crack – I’m talking about oil of course! Oil prices have risen 5 days in a row now, rising another $1 per barrel yesterday. Remember, the Canadian dollar is highly correlated to the price of oil, so whenever oil prices rise, the Canadian dollar normally follows suit.
No hardcore data for today, so make sure to keep an eye out on risk sentiment. Good luck trading today folks!
No thanks to risk aversion, the Loonie found itself on the Greenback’s trail the entire day. USD/CAD, which had opened the day at 1.0083, found itself at 1.0219 by the end of the U.S. trading session.
The resignation of Italian PM Berlusconi caused Italian bond yields to spike higher, which paved the way for risk aversion. This led to wide-reaching case of risk aversion, which resulted in traders seeking the safety of the Greenback.
In other news, the Canada’s New House Price Index came in as expected and reported a 0.2% increase. It is an improvement from the previous month’s 0.1% gain.
Today, the economic report to watch out for is the Canadian trade balance. It is predicted to show a 500 million CAD deficit, which is an improvement from the previous month’s 600 million CAD deficit.
Ha, take that greenback! After taking a beating during the earlier sessions, the Canadian dollar came swinging back and managed to post a nice victory versus the dollar. USD/CAD traded as high as 1.0219 before retreating to close at 1.0176, marking a 43-pip loss for the day.
Aside from a rebound in risk appetite, the Canadian dollar also benefited from good trade balance figures. A surplus of 1.2 billion CAD was posted for September, which was the complete opposite of the expected 500 million CAD deficit. This indicates that demand for Canadian products was strong during that month, which could lead to a spike in demand for the Canadian dollar as well.
With Canadian banks off on holiday, USD/CAD trading will most likely be dominated by swings in risk sentiment. Make sure to keep an eye on the markets – you never know what might prove to be a catalyst that drives price action!
Investors went loco for the Loonie as risk appetite picked up in Friday’s trading. USD/CAD tumbled from its intraday high of 1.0233 to end the day 61 pips below its opening price at 1.0115.
There wasn’t any economic report released from [Canada](http://www.babypips.com/school/canada.html), but there sure was enough positive vibes from Europe to go around and spark risk appetite. (You can read more about it in my EUR commentary.)
Of course, it also helped that [oil](http://www.babypips.com/school/black-crack.html), Canada’s biggest export, continued to rally. Keep in mind that the currency usually moves alongside the commodity on the charts. So with that said and given that we still don’t have anything on tap for the Loonie, make sure you keep tabs on oil as well as [market sentiment](http://www.babypips.com/school/what-is-market-sentiment.html), ayt?
Looks like the comdoll bulls have had enough partyin’ last weekend! Like its other comdoll buddies, the Loonie pared some of its gains against the dollar. USD/CAD capped the day 87 pips above its open price after hitting an intraday high of 1.0196. What gives?
Canada was quiet without any economic reports released yesterday, but risk aversion across the markets and doubts on the euro zone’s ability to control its debt crisis kept the Loonie bulls from charging. If you want to know more about the euro zone, why don’t you check out my write-up on the euro?
At 1:30 pm GMT today Canada is set to release its manufacturing sales report together with the new motor vehicle sales report. Both pieces of data are expected to come in a bit stronger than their previous readings, but keep close tabs on these for any surprises!
With risk aversion back in vogue, currency bears stepped out of hibernation and pounced on higher-yielding currencies such as the Loonie. USD/CAD continued to trade higher yesterday, ending the day 38 pips above its opening price at 1.0208.
Not even positive data and remarks from BOC Governor Carney kept the Loonie from falling victim to the dollar’s strength. It was reported yesterday that manufacturing sales in Canada grew by 2.6% in September, topping the 1.1% forecast. In a speech yesterday, the head honcho of the BOC said that the Canadian economy can weather the economic slowdown in the euro zone.
With investors still focused on rising Italian bond yields (more details in my EUR commentary) and without any data on tap from Canada, make sure you keep tabs on updates from Europe as market sentiment would most probably continue to dictate the Loonie’s price action in today’s trading. Good luck!
Yesterday turned out to be another losing day for the Loonie as risk aversion continued to loom in the markets. It seems that the overall uncertainty regarding euro zone’s debt situation has yet to abate, which has led to losses in risk-related currencies like the comdoll Loonie. USD/CAD, which began the day at 1.0208, closed the U.S. trading session 23 pips higher.
No economic news report was released yesterday but today we’ll see the numbers on Foreign Securities Purchases at 1:30 pm GMT. The report, which measures the total value of domestic stocks, bonds, and other financial assets purchased by foreigners, is expected to show a 9.24 billion CAD figure, higher than last month’s 7.92 billion CAD. Rising figures are usually interpreted as good for the currency as indicates confidence in the Canadian economy. Let’s see if the positive forecast can provide support for the Loonie.
Make that four in a row! The Loonie chalked up another day of losses against the Greenback as USD/CAD closed 53 pips up from its 1.0231 open price. Will the Canadian dollar be able to end its losing streak before the week closes? Let’s take a look at the upcoming data to find out!
But first, here’s a quick recap of what moved the Loonie yesterday. Canadian foreign securities purchases for September reportedly slid to 7.35 billion CAD instead of rising to 9.24 billion CAD. Although this reflects a drop in demand for Canadian assets and the Loonie, the figure for August was revised upwards from 7.92 billion CAD to 8.22 billion CAD.
Despite that, the Loonie still got weighed down by risk aversion as traders tuned in to the bond auctions in the euro zone. Last I heard, Spanish bond yields spiked to 6.97%, which is dangerously close to the critical 7% level. Now that’s not looking too good for the euro zone considering Italian bond yields went beyond that level earlier this week. Of course, speculations that several downgrades could be on the horizon weighed the higher-yielding currencies down as traders flocked back to the safe-havens.
It didn’t help that the US printed a weaker than expected Philly Fed index later on, keeping the risk aversion blues in the markets.
Today, Canada is set to release its CPI figures for October. Inflationary pressures are expected to have subsided during the month as the headline figure is estimated to come in at 0.1% while the core figure could show a 0.2% uptick. Keep an eye out for the actual figures due 12:00 pm GMT because these could rock the Loonie’s boat yet again.
Down and up the Loonie went, but it ended just where it started! USD/CAD, which began the Asian trading session at 1.0271, found itself barely changed by the end of the day at 1.0284.
Data release were better than expected. The consumer price index came in at 0.2% versus the 0.1% forecast. The core version was also higher than forecast as it printed a 0.3% gain versus the 0.2% consensus.
That’s pretty much it for Canada last Friday and this week, we’ve only got one big news event on the economic calendar. Tomorrow, at 1:30 pm GMT, the country’s retail sales report will be released. The market is expecting the report to show a 0.5% rise, just like last month. Meanwhile, the core version of the retail sales report is predicted to come out with a 0.4% increase.
When oil prices are plummeting and the other comdolls are falling, you just know that the Loonie is bound to take a hit! Risk aversion in the markets took its toll on the high-yielding comdoll yesterday, pushing USD/CAD to an intraday high of 1.0419 before capping the day with a 101-pip gain at 1.0377.
Of course, it didn’t help the Loonie that Canada’s wholesale sales report came in worse than market geeks had been counting on. The data came in with only a 0.3% growth in September, which is a bit lower than the 0.6% rise that analysts had been expecting.
Aside from poor economic data, the fall in oil prices and an overall rise in risk aversion probably sealed the deal for the Loonie bears. Crude oil fell by as much as 1.5% yesterday, a week low, while concerns on the euro region kept a lid on risk appetite.
Will the Loonie bears take a breather today? At 1:30 pm GMT we’ll get hold of Canada’s retail sales report, which is generally expected to grow at a pace similar in August. Still, better to keep an eye on this one as it could still rock your favorite Loonie pairs!
The Canadian dollar may have stopped its fall, but it didn’t exactly do it in a convincing manner! Even with better-than-expected retail sales data, it only managed to record a draw against the Greenback. USD/CAD ended the day exactly where it began at 1.0377, forming a perfect doji on the daily chart.
News that Canadian retail sales increased more than expected barely did enough to keep the Canadian dollar from sliding. Core retail sales rose 0.5% in September, outperforming forecasts which called for a 0.4% advance. Meanwhile, the headline figure also exceeded expectations by posting a 1.0% increase, which is double the figure that most had anticipated.
It seems that Canada has been able to maintain its uptrend in spending, as this not only marks the fifth increase in the past six months, but it’s also the biggest monthly rise since November of last year!
We won’t have any hard data to work with in Canada today, so risk sentiment will probably continue driving price action on USD/CAD. If you’re looking for clues about future monetary policy, tune in when BOC Governor Mark Carney takes the stage at 5:40 pm GMT. He might just drop hints about what the central bank plans to do over the coming months!
The Loonie’s price action against the Greenback yesterday was as slippery as the falling oil prices in the markets. USD/CAD traders ignored the doji on the daily time frame and proceeded to push the pair 107 pips higher to 1.0484.
There were no reports from Canada yesterday, but the Loonie took a huge hit when Germany failed to attract enough investors for its 10-year bonds. The event suggested that investors are losing optimism in the whole euro region, and inspired a sharp selloff in the markets.
But don’t blame Germany’s bond auctions too much! Falling oil prices also had a hand in the oil-related Loonie’s downfall yesterday. Crude oil for January slipped by as much as 0.6% by the end of the U.S. session thanks speculation that global oil demand will continue to slow down.
Only Canada’s corporate profits report at 1:30 pm GMT is scheduled for release today, so make sure you keep your eyes on any economic reports that might affect risk sentiment!
Way to go, Loonie! Even though risk aversion extended its stay in the markets, the Canadian dollar was able to end with a tiny win against the Greenback yesterday. After opening at 1.0484, USD/CAD dipped to a low of 1.0438 then closed at 1.0469. That 15-pip gain ain’t too shabby for the Loonie!
Despite news of Portugal’s credit rating downgrade haunting the markets, the Canadian dollar had something to be grateful for on Thanksgiving day. Canada’s quarterly corporate profits report showed a mere 0.5% drop in profits, which was an improvement over the 4.9% dip seen during the second quarter of the year. Besides, oil prices marked a 0.31% increase for the day, which provided some support for the Loonie.
There aren’t any economic reports on Canada’s schedule today, which means that the Loonie could be at the mercy of risk sentiment yet again. If you’re taking trades today instead of shopping for Black Friday deals, brace yourselves for extra volatility!
Talk about going looney for the Loonie! We saw some pretty wild moves on USD/CAD last Friday, as it was simply all over the place. After shooting up to as high as 1.0520, the pair broke lower at the start of the New York session, retesting former support at 1.0440, but only before rising back up to the 1.0500 mark. By the end of the day, the pair had closed at 1.0494, up 26 pips on the day.
The Loonie has been following the beat of risk sentiment lately, and this should remain the case for at least the next two days, as no major data will be released from Canada.
Things could change though, on Wednesday, as monthly GDP figures are on tap. Word is that the Canadian economy grew by 0.2% last month, but if we see a better-than-expected figure, it could help the Canadian dollar recover some of last week’s losses.
We could also see some wild trading this Friday, as employment figures are scheduled for release. Expectations are that after job losses of over 50,000 last month, just over 17,000 jobs were added this past month.
In any case, make sure to keep a close eye on the markets, as you never know what may prove to be a major catalyst. Be careful and good luck trading this week!
Take that, Greenback! The Loonie ended its losing streak against the U.S. dollar as USD/CAD closed 83 pips down from its 1.0436 day open price. Is this merely a retracement or could USD/CAD be in for a reversal?
Even though Canada didn’t release any economic data yesterday, the rebound in risk appetite was more than enough to boost the Loonie. As it turns out, European leaders showed willingness to take additional steps to solve the debt crisis in their region. Whether this good vibes will last remains to be seen so it’s still crucial to keep an eye out for any updates from the euro zone.
Canada is set to release its current account balance at 1:30 pm GMT today. The report could show that the deficit narrowed from 15.3 billion CAD to 11.3 billion CAD in the third quarter of the year. Since trade and foreign investment increased during the quarter, Canada could be in for a stronger than expected figure, which could provide the Loonie another boost for today.
Make that back-to-back! The Canadian dollar continued its winning ways, as USD/CAD dropped another 51 pips to close at 1.0302. Will the Canadian dollar make it three for three, or will we see a mid-week reversal?
Overall risk appetite following successful Italian bond auctions, as well as a rebound in oil, were responsible for the Canadian dollar’s domination yesterday. This helped it overcome poor current account data, which came in worse-than-expected and showed a deficit of 12.1 billion during the 3[SUP]rd[/SUP] quarter. This was slightly higher than the expected 11.3 billion deficit.
It’ll be interesting to see how this develops moving forward, especially with many institutions downgrading their forecasts for U.S. growth. Remember, the U.S. is Canada’s trading partner, so if it is struggling, then Canada may struggle as well.
Looking ahead, we’ve got monthly GDP data coming out at 1:30 pm GMT. Expectations are that the Canadian economy grew by 0.3% in the past month, which would match the past two month’s growth figures. If this comes in better-than-expected, it could help the Loonie break through support at the 1.0300 level.
Boy did investors go looney for the Loonie yesterday! USD/CAD peaked at 1.0364 before dropping like it’s hot to an intraday low of 1.0125. By the end of the day’s trading, the Loonie was up 100 pips against the dollar.
Aside from risk appetite sparked by the coordinated move by central banks (more details in my [EUR commentary](http://forums.babypips.com/daily-forex-economic-commentary/25983-daily-economic-commentary-euro-zone-63.html#post298112)), the better-than-expected [GDP](http://www.babypips.com/forexpedia/Gross_Domestic_Product_%28GDP%29) report for September also helped the Loonie rally. The 0.2% uptick for the month translated to an annualized growth of 3.5% which topped the 3.0% forecast! Digging a little deeper into the report, I found out that a big jump in exports offset slower domestic spending.
Our [forex calendar](http://www.babypips.com/tools/forex-calendar/) is blank for reports from [Canada](http://www.babypips.com/school/canada.html) today, so make sure you keep tabs on [market sentiment](http://www.babypips.com/school/what-is-market-sentiment.html). Keep in mind that the currency usually rallies in times when risk appetite is up. Good luck!
And it keeps going and going and going! Like the Energizer bunny, the Loonie was full of energy once again as it took another 58 pips away from the Greenback. As a result, USD/CAD posted its fourth daily drop in a row and closed at 1.0143 at the end of the day.
It looks like the markets still had a bit of risk appetite left over from Wednesday’s coordinated central bank efforts as the Loonie had no problem attracting demand.
Will we say the same after today? Well, that’ll depend on the Canadian employment data that’ll come out at 12:00 pm GMT. Forecasts have the unemployment rate staying flat at 7.3%. However, economists believe that a total of 18,100 jobs were added last month, in contrast to the 54,000 jobs that were lost in October. Needless to say, an upside surprise could reignite demand for the Loonie and help USD/CAD record its fifth straight fall.
But remember, the U.S. NFP report is also due to be released later today, and that could heavily affect USD/CAD price action as well. So be sure to remain flexible, kids!
“V for Vendetta?” Despite the lack of high profile economic reports from Canada, USD/CAD still managed to exhibit quite a bit of volatility yesterday. The pair traded in a perfect “V” pattern, falling sharply during the European and U.S. session overlap and then climbed quickly once the U.S. afternoon session came to a close. USD/CAD closed the day at 1.0199, barely changed from its day open price at 1.0160.
Today will probably be different though. Prepare yourself for a lot of volatility as the Bank of Canada (BOC) is scheduled to announce their decision on interest rates. Even though the market widely expects the BOC to keep rates unchanged at 1.00%, the accompanying statement could reveal something significant since the year is coming to a close. The BOC will be on the wires at 2:00 pm GMT.
The Ivey Purchasing Managers’ Index could also have a strong impact on price action. The expectation is a reading of 55.2, slightly higher than last month’s 54.4. The actual figure will be published at 3:00 pm GMT.
Score one for the Canadian dollar! Thanks to good economic data and a relatively positive Bank of Canada statement, the Canadian dollar was able to post decent gains versus the dollar. USD/CAD was able to break below the 1.0100 handle and close at 1.0095, marking a 74-pip win.
Building permits came in much better-than-expected, as they rose by a whopping 11.9%, which was more than 5 times the expected 2.3% increase. This means that construction activity could pick up in the coming months, as acquiring permits is the first step towards more construction.
The Ivey PMI also surprised to the upside, as it printed at 59.9, up from last month’s reading of 54.4. This indicates that manufacturing managers anticipate a pickup in activity over the next few months, which should bode well for the Canadian economy.
The biggest driver of Loonie trading yesterday though was the BOC interest rate statement. While no changes were made to its baseline interest rate, its accompanying statement suggested a change in stance by BOC members. In recent months, the BOC had taken a rather dovish tone on the state of the global economy.
While the central bank did acknowledge concerns about the ongoing European debt crisis, it had a less dovish tone and refrained from mentioning about any further rate cuts. This was enough to spur the Canadian dollar to new highs and push it up the charts.
No data on the docket today, so we might not see as strong a move as we saw yesterday.