And just when everyone thought the Loonie was headin’ back to parity, risk aversion kicked in! USD/CAD dipped to an intraday low of 1.0066 before ending the day 7 pips above its opening price at 1.0103.
As I’ve discussed in my EUR commentary, word about European banks experiencing funding difficulties might have taken a toll on risk appetite in yesterday’s trading. With that said, be sure to keep tabs on reports coming from the euro zone today as they may cause market sentiment to shift.
On top of that, be sure to watch out for the reports we have scheduled from Canada. At 1:15 pm GMT, the housing starts report for November will be released and it is expected to come in at 203,000. Then a few minutes later, at 9:30 pm GMT, we’ll get dibs on the housing prices in the country with the NHPI report for October. The forecast is for a 0.3% uptick.
If you’re planning to go long on the Loonie, keep your fingers crossed for better-than-expected figures as they may just spur the currency to a rally!
Looks like the Loonie bears aren’t done with their feast yet! In fact, it seems like they’re stepping up their game! USD/CAD followed up with its gains the previous day and climbed 121 pips more, ending the day at 1.0224.
With bearish reports from the euro region and risk aversion escalating across the board, who could blame the Loonie bears from attacking? Yesterday the lack of unity among the European officials took its toll on the high-yielding currencies including the comdolls.
Of course, it didn’t help that Canada’s housing starts dropped to only 181,000 in November after clocking in a 209,000 figure in October. Lastly, oil prices dropped by as much as 2% yesterday alone which probably contributed to the losses of the oil-related Loonie.
At 1:30 pm GMT today we’ll get hold of Canada’s trade balance report as well as its quarterly labor productivity numbers. Analysts aren’t holding their breaths and hoping for a trade surplus higher than the 1.2 billion CAD in September, but make sure you keep close tabs on this one! Who knows, it might be a big influence on the Loonie’s price action!
Aaah, there’s nothing like risk appetite to get investors looney for the Loonie. On Friday, USD/CAD dropped from an intraday high of 1.0263 and ended the day 40 pips below its opening price at 1.0184.
Positive data from the U.S. and good news from the euro zone (more details in my EUR commentary) sparked risk appetite and allowed higher-yielding currencies, such as the Loonie, to end Friday with gains. So with that said and given that our forex calendar is blank for reports from Canada today, be sure you gauge market sentiment, ayt? More good news from the euro zone would probably be bullish for the Loonie.
The Loonie bears flexed their muscles yesterday as risk aversion popped its head again. After opening the day at 1.0198, USD/CAD found itself sitting at 1.0271 by the end of the U.S. trading session.
The market’s aversion to risk could be attributed to the fruitlessness of the European Summit. While some plans were drafted, the market thought that it lacked decisive policy measures. Moody’s also said that it would review all the credit ratings of European countries.
Canada’s forex calendar today presents no real threat, which means we probably won’t see a lot of movement from the Loonie. Nevertheless, it always pays to be careful in the forex market, so don’t let your guard down!
The Loonie took a hit from the Greenback yesterday as risk aversion extended its stay in the markets. USD/CAD tried to stay below the 1.0300 handle then broke higher after the U.S. retail sales release and closed at 1.0342.
Weaker than expected U.S. retail sales brought risk aversion back in the markets, causing higher-yielding currencies to lose ground. So much for those record-high Black Friday sales!
Crude oil prices also dropped yesterday, contributing to the Loonie’s decline. Apparently, investors were reluctant to hold on to large crude oil positions ahead of the OPEC meetings today.
Today, Canada is set to release its leading index along with its manufacturing sales report. The leading index could show a 0.3% uptick for November, slightly higher than the 0.2% rise seen last October. Meanwhile, manufacturing sales are expected to have stayed flat in October. Watch out for these reports due 1:30 pm GMT as weak figures could mean another set of losses for the Loonie.
And the Loonie strikes out for the third time in a row! Due to the overwhelming case of risk aversion yesterday, the Loonie continued to give up ground to the Greenback. USD/CAD ended the U.S. trading session at 1.0396, 54 pips higher from its opening price.
In terms of economic reports, the results out of Canada were mixed. The manufacturing sales report came in worse than expected at -0.8% vs. 0.0%, but the new motor vehicle sales was almost double than forecast. The leading index was also greatly positive as it printed 0.8% figure versus the 0.3% consensus.
No biggies on Canada’s forex calendar today. This means that the Loonie’s price action will probably be driven by events that occur in other major economies like the euro zone and the U.S.
Finally! A win for the Loonie! Thanks to a rise in risk appetite yesterday, USD/CAD broke its winning streak and fell by 39 pips to 1.0357 after falling to an intraday low of 1.0320. Boo yeah!
Though oil prices fell for another day yesterday, the Loonie was barely affected because it mainly traded on risk sentiment. Bullish reports from the euro zone restored some confidence in the high-yielding assets, and boosted the comdolls against the low-yielding dollar.
It also helped that Canada’s capacity utilization rate rose by 81.3% in the third quarter, a rate higher than the 79.2% rate that market geeks were expecting.
Will Canada keep up the good vibes today? Canada’s foreign securities purchase is scheduled for release at 1:30 pm GMT today, but don’t forget to tune in to economic reports from the other region too! The Loonie might trade on risk sentiment again today so make sure you’re always updated!
Good luck trading today, kids!
It stops at one! The Canadian dollar was unable to follow up its win on Thursday with another victory as USD/CAD rose 13 pips to close at 1.0370. And so far, it isn’t doing so well to start the week! Will it continue to slide down the charts?
Considering that Canada’s foreign securities purchases report fell waaaay short of forecasts, it’s not surprising that the Canadian dollar didn’t end the week on a high note. The report revealed that the total value of domestic stocks, bonds, and money-market assets purchased by foreigners in October was only 2.03 billion CAD, not even a fourth of the anticipated 8.23 billion CAD figure! Could this be a reflection of the risk averse market environment?
I suggest you give that question a bit more thought while you wait for the wholesale sales data, due today at 1:30 pm GMT, to come in. The report is expected to print an increase of 0.3% again for the month of October, but look for the Loonie to rally in the event the actual results exceed expectations.
If that doesn’t catch your fancy, worry not because juicier reports will be published later in the week. CPI data will be available on Tuesday at 12:00 pm GMT. Look for the headline figure to drop from 0.3% to 0.2% and the core figure to rise from 0.3% to 0.2%.
Then on Wednesday, Canada is due to roll out retail sales data. The headline figure is slated to fall from 1.0% to 0.4% while the core figure is anticipated to tick down from 0.5% to 0.4%.
And to cap our week off on Friday at 1:30 pm GMT, we’ll take a look at Canada’s monthly GDP! Forecasts have the report showing a growth of just 0.1%, which is just half that of the previous month.
Phew! What an action-packed week! But just because Canada will be publishing a lot of tier 1 reports doesn’t mean you should ignore risk sentiment. With the markets still focused on the European debt crisis, there’s a good chance that risk sentiment will continue dictating price action. Good luck trading this week, kids!
The Loonie woke up on the wrong side of the charts as risk aversion overshadowed better-than-expected economic reports from Canada. USD/CAD ended up rising for a second day in a row, climbing by another 23 pips to 1.0386.
Canada’s wholesale sales printed a 0.9% gain in October, which is a lot better than the expected 0.3% gain and September’s upwardly revised 0.5% rise. Unfortunately, the Loonie bulls and bears were hooked on news reports from the euro region.
As I mentioned in my EUR writeup, the bearish news reports offset the good ones in yesterday’s trading. So will the Loonie bulls pare back some of their losses today? Canada is expected to release its CPI reports at 12:00 pm GMT today. While the core and headline figures are expected to inch slightly lower, a higher figure might give the comdoll some boost.
Good luck trading today, kids!
Oh, what a rally! The Loonie had a blast yesterday as risk appetite popped its head back in the markets. USD/CAD dipped to a low of 1.0263 before closing at 1.0303, 83 pips down from its day open price. Can the Loonie hold on to its gains today?
Good news from the euro zone, namely strong German data and better than expected Spanish bond auctions, encouraged traders to pursue higher-yielding assets yesterday. Make sure you check out my euro zone economic commentary for the rest of the details!
As for Canadian data, their inflation reports came in worse than expected as both headline and core CPI posted mere 0.1% upticks. These were less than the consensus of a 0.2% increase for both figures. Still, the Loonie seemed to be indifferent to these weak figures as it joined the risk rally.
Today, Canada is set to release its retail sales figures for November. The headline figure is expected to show a 0.4% increase while the core figure could post a 0.3% rise. Better than expected data could give the Loonie another boost so keep an eye out for the actual release at 1:30 pm GMT.
What an up and down day for the Loonie! After sprinting to as low as 1.0210 midway through the London session, the pair reversed course and made its way back up to the 1.0300 handle. By the end of the day, the pair was trading at 1.0260, marking a 40-pip loss on the day.
One set of data that boosted the Canadian dollar early were retail sales figures that were released in the New York session. Headline sales growth was at 1.0% in November, while core retail sales were up by 0.7%. These figures were much better than the expected 0.3% and 0.4% that experts were predicting. I guess the Thanksgiving shopping spirit spilled over on to the Great White North!
Nothing coming out today from Canada, so we may see less movement on the Loonie. In any case, just be careful out there as you never know when we’ll see an exaggerated move for no reason other than that liquidity is pretty thin right now. Good luck!
It looks like Loonie bulls will indeed have a merry Christmas this year. That is, if risk appetite lingers! Yesterday, the Loonie closed with a 49-pip win against the dollar at 1.0211 thanks to the positive vibes brought about by better-than-expected U.S. data.
With that said, it would probably be a good idea to keep tabs on the reports we have on tap from the U.S. as well as the GDP report coming from Canada. The consensus is for the economy to have grown by 0.1% in October. A better-than-expected figure will probably send USD/CAD even lower on the charts so watch out!
Though risk aversion threatened the Loonie in the last days of the year, the comdoll was pretty much able to maintain its footing against the Greenback. USD/CAD consolidated after experiencing wild swings, eventually ending the year just below the 1.0200 handle.
If you want a quick recap of the rollercoaster ride that the Loonie went through in 2011, I suggest you take a look at Forex Gump’s year-end review of the Loonie’s price action. It’s a sweet read and checking it out would be a wise way to spend your time considering that many markets will still be closed today!
The week ahead looks promising, as Canada will be rolling out some hard-hitting reports to start the year. On Thursday, we have the Ivey PMI coming out. The index is expected to slip from 59.9 to 56.7.
Then on Friday, we’ll take a look at Canadian employment data. According to economic fortunetellers, the unemployment rate probably remained 7.4% last month. However, expect December to show an increase of 15,300 jobs, a nice reversal to the 18,600 jobs that were lost in November. Good luck and may you all have an awesome 2012!
All throughout yesterday’s trading, USD/CAD was just chillin’ like a villain at the 1.0200 handle due to the absence of economic data. Luckily, the Loonie was able to hustle some muscle before the day’s close, ending it with a 17-pip win at 1.0194.
Our forex calendar is still blank for reports from Canada today. However, that doesn’t necessarily mean that we won’t see any action on USD/CAD. As Forex Gump pointed out in his blog yesterday, we may see volume pick up and affect the fate of currencies on the charts as traders go back to their desks after the holidays. So be careful!
Guess who’s 2-0 for 2012! That’s right, the Loonie! For the the second straight day, the Canadian currencyposted gains against its American counterpart as a round of risk taking boosted the comdoll. This saw USD/CAD post its biggest daily slide since November of last year as it fell from 1.0194 to 1.0110.
Risk appetite was about as healthy as ever yesterday. A downpour of positive reports from around the world caused it to rain pips across several markets. With upbeat data from the euro zone and the U.S. fueling demand, the comdolls were able to extend their rallies for another day!
Today, it looks like we won’t be getting any Canadian reports again, so in the meantime, I suggest you keep tabs on risk sentiment. After yesterday’s surprising risk rally, it’ll be interesting to see if the Loonie can hold onto its gains. Stay sharp, fellas! Let’s see if this bullish momentum will carry the Loonie higher!
With risk-taking taking a backseat yesterday, the Canadian dollar reversed some of its gains made early in the week. USD/CAD traded as high as 1.0163 before settling at 1.0123, marking just a 13-pip gain on the day.
The Loonie rose on overall risk aversion yesterday, as higher yielding currencies faltered a bit. Interestingly, the losses were much smaller on the comdolls as compared to the euro, indicating that fundamentally, the Canadian dollar might be a bit stronger than some of its other counterparts.
Later today at 3:00 pm GMT, the Ivey PMI is scheduled to hit the airwaves. Expectations are that the index will print at just 57.5, down from the 59.9 reading we saw last month. Should this report come in much worse-than-expected, it could lead to another round of losses for the Canadian dollar.
All was not good in the Loonie’s hood yesterday as it ended up erasing what was left of its big gains from Tuesday. With risk appetite turning sour, USD/CAD was forced to close at 1.0192, 69 pips above its opening price.
Traders paid little attention to yesterday’s Ivey PMI report as they ditched the Loonie although the index printed upbeat results. Analysts had initially predicted the index to fall from 59.9 to 57.5, but instead, it surprisingly rose to 63.5! But this did little to improve demand for the Loonie as traders were in hardcore risk aversion mode yesterday.
Today we have more data coming out at 12:00 pm GMT in the form of employment reports. The Canadian unemployment rate is expected to chill at 7.4%. However, survey says that we’ll likely see an increase of 17,800 jobs for the month of December, a nice reversal to the 18,600 jobs lost in November.
As big as these reports are, you have to keep in mind that within two hours of their release, the U.S. will be publishing employment data of its own. Y’all better factor in the U.S. NFP report when you trade, folks! You don’t wanna get blindsided, do ya?!
I guess people aren’t that looney for the Loonie eh? The Canadian dollar was one of the biggest losers last Friday, as poor economic data sent it much lower. USD/CAD rose 88 pips from its opening price to finish at 1.0270. Can the Candian dollar make a comeback, or will it take more hits this week?
One reason why the Canadian dollar may have took some hits last Friday may have been due to some employment figures. While 17,500 jobs were added to the economy, the unemployment rate ticked up to 7.5%. Moreover, Canadian businesses remain cautious, we may mean only modest jobs gains in the coming months.
Later today at 1:30 pm GMT, building permits figures will be made available. Expectations are that building permits dropped by 3.1% in November, after they rose by 11.9% in October. Remember, obtaining a building permit is the first step in the construction of a new building. Falling permits would indicate that construction activity may tick down, which wouldn’t bode well for the construction industry.
After tapping a low of 1.0320 against the dollar, the Loonie hustled its muscles to a rally and ended the day with a 51-pip win at 1.0229. Now that’s how you start the week right!
Luckily for the Loonie, market sentiment improved following positive developments in the euro zone and allowed traders to somehow overlook the worse-than-expected building permits report for November. The total value of new building permits issued dropped by 3.6% during the month after growing by 11.6% in October. It also disappointed expectations as markets only priced in a decline of 3.1%.
With that said, be sure you keep tabs on market sentiment in today’s trading to help you gauge the Loonie’s fate on the charts. The Chinese trade balance report is due sometime today and it could affect the moods of investors. Remember that an 8.3 billion trade surplus is anticipated. Good luck!
Like the rest of Happy Pip’s comdolls, the Loonie chalked up another win against the Greenback yesterday. USD/CAD dropped by another 60 pips after reaching an intraday low of 1.0154, ending the day at 1.0169.
As it turned out, the lack of bad news from the closely-watched euro zone as well as positive earnings report from the U.S. supported risk appetite. Not only that, Canada also released a better-than-expected housing starts report.
The data printed at 200,000 in in December, a 7.9% improvement from the 186,000 figure we saw in November. Heck, even Canada’s Finance Minister Flaherty is feeling the love for the Loonie! In his speech yesterday, he announced that while the government is planning on pursuing employment and economic growth, they’re also not planning on implementing austerity measures anytime soon. How’s that for good vibes, eh?
No economic report is scheduled for release in Canada today, but make sure you keep close tabs in your economic calendar to see if there are any news events that could move your favorite Loonie pairs!
Good luck in your trades, kids!