Make that four in a row baby! Thanks to the risk rally we saw yesterday, the Canadian dollar was able to edge higher versus the dollar. USD/CAD dropped 25 pips to finish the day 1.0019. Next stop parity?
Can the Canadian dollar continue to surge higher? Well, we’ll find out during the New York session as Canadian GDP figures are scheduled to hit the Great White North! Expectations are that the economy grew by 0.2% last May, which would be a nice follow-up to the 0.3% growth in April.
Seeing as how our buddies over at the Bank of Canada have been trying to stay optimistic, if today’s report prints to the upside, we could see another victory for the Canadian dollar.
The Loonie could only watch its comdoll comrades with envy as they traded higher yesterday. It got stuck in the bear lair following the disappointing GDP figures from Canada. USD/CAD ended the day 11 pips higher from its opening price at 1.0029.
In May, the Canadian economy only expanded by 0.1% when analysts predicted that it grew by 0.2%. Sure, the discrepancy between the actual and consensus figure is small. However, that may just give the BOC one more reason to stop being hawkish.
For today, our forex calendar is blank for reports from Canada. So be sure you keep tabs on market sentiment as it would probably dictate the Loonie’s price action in today’s trading. Good luck!
Down for the second day in a row! Like its comdoll buddies, the Loonie weakened against the Greenback following a disappointing statement from the Fed. USD/CAD dropped to an intraday low of 1.0004 before it capped the day 22 pips higher than its open price.
No data was released from Canada yesterday, but there were plenty of action for the high-yielding currencies as they reacted to the Fed’s refusal to pull the QE trigger. Instead of launching another bond-buying program as investors were hoping for, the Fed merely stated its readiness to intervene in case it’s needed. Boo!
There isn’t anything on Canada’s economic boards again today, so you better keep a close watch for any news that might affect risk appetite! Word on the hood is that ECB’s Draghi could provide fireworks when he announces the central bank’s plan for the euro region.
Without any economic data on tap, the Loonie fell victim to market sentiment yesterday. Sadly for the comdoll, ECB President Draghi’s speech had traders flocking away from higher-yielding currencies and into the safety of the dollar and the yen. USD/CAD ended the day 22 pips higher at 1.0073 after tapping a low of 1.0002.
As I said in my EUR commentary, the ECB head honcho failed to impress the markets. His speech consequently took a toll on market sentiment and sent higher-yielders like the Loonie to the bear lair.
Our forex calendar is still blank for reports from Canada today. This means that we’ll probably see the Loonie trade according to market sentiment. So with that said, make sure you keep tabs on the much anticipated U.S. NFP report as it would probably affect the market’s mood in today’s trading!
Thar she blows! The Loonie emerged victorious against the safe haven Greenback last Friday as risk appetite managed to make its way back into the markets. USD/CAD started the Asian trading session 1.0073, dipped below parity at .9980, and then closed the day at 1.0019.
The better-than-expected U.S. non-farm payrolls was the main reason behind the Loonie’s rally. It came in at 163,000, significantly higher than the 101,000 increase the market had initially anticipated.
Will the Loonie be able to break parity this week?
Brace yourself for another round of high impact economic releases starting on Tuesday, when the country’s Building Permits and Ivey PMI and publish. The Building Permits report is expected to show a 3.4% decline while the Ivey PMI is predicted to print a reading of 51.7.
The excitement peaks on Friday when Canada releases its employment report. The market expects the report to show that 10,200 jobs were created for July and that joblessness probably increased to 8.3% from 8.2%.
Parity is holding like a boss yo! USD/CAD kept its head above the 1.0000 mark as the pair moved sideways for almost the entire day yesterday. Now that Canadian traders will be back from their bank holiday today, what’s next for USD/CAD?
There were no economic reports released from Canada yesterday as the country was on a bank holiday. Today, Canada is set to release its building permits data at 12:30 pm GMT and its Ivey PMI reading at 2:00 pm GMT. Building permits are expected to be down by 3.5% in June, erasing part of the 7.4% jump seen last May. Meanwhile, the Ivey PMI is projected to jump back above the 50.0 mark and land at 52.0, signaling an expansion in Canada’s manufacturing industry.
If you’re planning to trade the Loonie today, make sure you keep a close eye on these red flags because they could determine whether USD/CAD could finally make a break below parity or not. Good luck!
It looks like the Loonie has been going to the gym! For the third straight day, the currency outmuscled the safe haven Greenback and post another winning day. USD/CAD ended the U.S. trading session at .9976, 21 pips lower from its opening price that day.
The Loonie received a huge boost from better than expected data. The Ivey PMI came in at 62.8 versus the 52.0 initially expected while the Building Permits report only showed -2.5% and not -3.5%. While they weren’t impressive, they were good enough to lift the mood of the bulls.
Will the Loonie continue its winning streak? With nothing on deck, we could see the Loonie take a breather. The pair has already made fresh 2-month lows, so it might be due for a retracement soon. Be safe traders!
There’s no stopping the Loonie bulls’ party! While other high-yielding currencies experienced choppy trading against the Greenback, USD/CAD registered its fourth consecutive decline in a row. Are Canada’s economic reports the reason for the Loonie’s strength?
Not exactly. Although the building permits and IVEY PMI reports that were printed early this week helped, it was actually the rising oil prices and increased possibility of a QE3 from the U.S. that boosted the oil-related comdoll. The question is, will the bulls extend their winning streak for the fifth day?
At 12:15 pm GMT today Canada will release its housing starts data, followed by the new housing price index (NHPI) and trade balance data at 12:30 pm GMT. Pay special attention to the trade balance report for any signs that the sluggish growth in the U.S., Canada’s largest trading partner, has affected the country’s economy.
Good luck trading today, kids!
And the streak goes on and on and on! The Loonie recorded its FIFTH straight win against the Greenback, pushing USD/CAD down 26 pips to a new three-month low at .9920. Will it keep its streak intact today?
Loonie bulls owe it all to BOC Governor Mark Carney, who caught the markets off guard when he declared that Canada’s recent economic strength may require interest rate hikes. Yowza! While other central banks are contemplating monetary easing, here we have the BOC actually considering tightening its policy… no wonder the Loonie was in such high demand!
Anyway, this bit of news managed to overshadow yesterday’s not-so-impressive reports. Housing starts (209,000 vs. 212,000 forecasts), trade balance data (-1.8 billion CAD vs. -0.9 billion CAD forecasts), and the NHPI (0.2% vs 0.3%) all fell short of expectations.
Today, we have more heavy releases coming out as Canada is due to publish its latest employment reports at 12:30 pm GMT. Look for the job pool to widen by 9,600 jobs and the unemployment rate to stay at 7.2%.
Phew, that was a close one! Though Canada’s employment data surprised to the downside, the Loonie was still able to continue its winning streak against the Greenback. USD/CAD hit an intraday high of .9971 before it settled 8 pips lower than its open price. Talk about being on a roll!
Just when we’re starting to believe BOC Governor Mark Carney’s talks about Canada being different from crisis-related countries like the U.K., Canada’s employment numbers sucker-punched the Loonie bulls.
Canada surprisingly shed 30,400 jobs in July, which pushed the jobless rate up from 7.2% to 7.3%. Analysts had expected a 9,600 increase in jobs.
But the disappointing data didn’t rain on the Loonie bulls’ parade! USD/CAD shot up to an intraday high of .9971 at the release of the report, but the pair soon erased all its gains and even capped the day 8 pips lower than its open price.
We won’t see any economic data on Canada’s docket until Thursday at 12:30 pm GMT when the foreign securities purchase and the manufacturing sales data are due for release, so make sure you keep an eye out for any major news report that might affect the Loonie’s price action!
Ho humm… Thanks to the lack of hard-hitting reports yesterday, USD/CAD was stuck in a tight range just above .9900 for almost an entire day. During the U.S. session, the pair broke slightly higher and reached a high of .9941 before closing at .9926.
Canada’s economic schedule is still empty for today, but that doesn’t mean that USD/CAD is in for another round of sideways price action! There are a bunch of red flags on the U.S. agenda which may set off some fireworks here and there.
The U.S. is set to release its retail sales data and PPI figures at 12:30 pm GMT today and these reports might have a huge impact on risk sentiment. Make sure you drop by my U.S. economic commentary if you plan to trade USD/CAD during these releases. Good luck!
Zzzzzz… what a snoozefest on USD/CAD! Once again, the pair remained within a range and failed to set any new highs or lows. Could we see more of the same today?
Despite the high impact reports released by Uncle Sam, USD/CAD continued to consolidate yesterday, as it traded within a tight range of less than 40 pips.
With no data lined up from Canada today, I wouldn’t be surprised if we get another day of ranging. Just be sure to practice good risk management techniques as you never know what might hit the markets!
Finally, some action! USD/CAD busted out of its tight consolidation above the .9900 handle and broke down to close at .9891. Does this mean that this pair is headed much further south?
Although Canada didn’t release any economic reports yesterday, the Loonie was able to take advantage of U.S. dollar weakness when Uncle Sam printed weaker than expected figures. U.S. CPI missed expectations of a 0.2% uptick and posted a flat reading while the core version showed a mere 0.1% increase instead of the projected 0.2% climb. Meanwhile, the Empire State manufacturing index posted a surprisingly negative reading of -5.9 when analysts were expecting to see a 6.6 figure.
Today, Canada is set to release its manufacturing sales report and foreign securities purchases data. Manufacturing sales are estimated to rebound by 0.3% in June after slipping by 0.4% last May while foreign securities purchases might fall from 26.11 billion CAD to 10.67 billion CAD. Bear in mind that weaker than expected Canadian data could force the Loonie to return some of its recent gains against the U.S. dollar.
Don’t forget that the U.S. is also set to release a few top-tier reports which could affect USD/CAD price action again. Building permits and housing starts, along with the initial jobless claims figure, are due 12:30 pm GMT while the Philly Fed index is set for release at 2:00 pm GMT. Drop by my U.S. commentary to see how those reports could turn out!
This is starting to get ugly! For the third day in a row, Loonie bulls trounced bears as USD/CAD slid further down the charts. Will it fall for a fourth straight day today?
Action on USD/CAD was actually pretty chill during the Tokyo and London sessions. It wasn’t until the New York session that Loonie traders really got things going.
The release of worse-than-expected manufacturing sales (-0.4% vs. 0.3%) and foreign securities purchases (-7.89 billion CAD vs. 10.67 billion CAD) data led to a strong Loonie sell-off. Apparently, the energy sector’s weak performance was to blame for the slump in manufacturing sales, as the month of June saw an unusual number of factory shutdowns.
In any case, demand for the Canadian currency returned in full force soon after the U.S. published disappointing Philly Fed manufacturing index results. Good save!
On the economic docket today is the July inflation report. According to economists, we’ll likely see both headline and core CPI print an increase of 0.2% in prices of consumer goods, up from the 0.4% decline we saw in June. Seeing as the markets have been responding to fundamentals as of late, if inflation comes in stronger than expected, it could lead to more gains for the Loonie. Make sure you tune in at 12:30 pm GMT to catch the action!
Where did all 'em Loonie bulls go? On Friday, the comdoll pared almost all of its gains from Thursday’s trading against the dollar. USD/CAD traded higher after it opened at .9867, closing the day at .9891.
The better-than-expected consumer confidence report from the U.S. encouraged dollar-buying among investors. Aside from that, it didn’t help the Loonie that the CPI reports from Canada came in lower than expected.
Government data showed that consumer prices (both the headline and core readings) contracted by 0.1% in July. It did not only mark the third consecutive month of decline, it also disappointed expectations which were for a 0.2% uptick.
Of course, the negative inflation report worried some traders that it may give the BOC enough reason to shed its hawkish feathers for dovish ones.
For today, we only have the wholesale sales report for June on tap from Canada at 12:30 pm GMT. It is anticipated to come in at 0.4%. Although it’s only a second-tier report, a better-than-expected reading may give the Loonie a little boost as it would imply stronger consumer spending among Canadians. So don’t miss it!
Like a sneaky little thief, the Loonie snatched a few pips away from the Greenback to start the week. With the newswires silent in Canada and the U.S., USD/CAD quietly dipped 9 pips to end the day at .9884.
USD/CAD might as well have been called Snoozeville with how boring price action on the pair was yesterday. It stayed within a very tight range and didn’t move more than 30 pips to start the day!
Hopefully, action will pick up later with the release of the wholesale sales report, which is expected to show an increase of 0.3%, down from 0.9%. Since this report gives us an early indication of retail sales performance, you might want to catch it when it comes out at 12:30 pm GMT.
After it looked like USD/CAD was headed for 4-month lows, the Canadian lost its grip and slipped versus the dollar yesterday. The pair hit as low as .9843 before reversing and finishing at .9897, 13 pips above its opening price.
Wholesale sales disappointed, as it showed a mere 0.1% uptick last month, after it was projected to have grown by 0.3%.
But the real reason why the Canadian dollar fell may have been due to oil trading. Brent crude also set off for new highs but couldn’t sustain its momentum and eventually closed just above its opening price. Don’t forget, the Canadian dollar is highly correlated to oil prices, so when we see oil prices drop, we normally see the same on the Canadian dollar.
For today, we could be in for more volatility as Canadian retail sales figures are scheduled for release at 12:30 pm GMT. Headline and core sales are projected to have increased by 0.2% and 0.3% respectively. If you plan to play this report, don’t forget to check out Forex Gump’s guide to play the Canadian retail sales report!
For the second day in a row, the Loonie lost in the battle for supremacy versus the safe haven Greenback. Apparently, commodity prices were generally weaker yesterday, which resulted in the Loonie being sold off. Oil was unable to rise and remained unchanged around $97 while gold fell to $1,639.
Economic data from Canada also disappointed. The retail sales report showed that sales fell 0.4% instead of rising 0.2%. The core version of the retail sales report was also weaker than expected as it showed a 0.4% decline versus the 0.3% increase initially expected.
Canada’s economic cupboard has nothing in it today. This means that the Loonie’s price action will most likely be dictated by events happening in other major economies like the U.S.
Tough luck, Loonie bulls! The Canadian dollar wasn’t spared from the scrilla bulls’ wrath yesterday as they bought the Greenback against the comdolls. USD/CAD rose for one more day thanks to mixed QE3 speculations.
Canada didn’t release any economic report yesterday, but the Loonie bears got busy as more and more traders doubted the Fed’s resolution to pull the QE3 trigger in the near future. Of course, Canada’s string of disappointing economic reports early this week probably made it easy for the Loonie bears to pay attention to the QE3 skeptics.
Canada’s economic boards are empty again today, which gives you a lot of room to trade the Loonie based on news reports from other major economies. Don’t forget to read up on what’s influencing price action and make sure you stick to your trading plan!
Enjoy your weekend, homies!
The Loonie bulls were able to breathe a collective sigh of relief last Friday as USD/CAD ended its 3-day winning streak by stepping back by 20 pips to .9916. No report came out from Canada, so what influenced the Loonie lovin’?
The comdoll bulls have ECB speculations to thank! Apparently, investors of high-yielding currencies like the Canadian dollar got their kicks when rumors went around that the ECB is making progress on its plans to buy peripheral bonds to limit their yields.
Don’t be so sure that the good vibes will continue though, as there are also a couple of reports circulating about a possible temporary Grexit. No data is scheduled to come out from Canada today, so any news about the euro zone or the Fed’s stimulus plans will most likely affect the Loonie today. Just be careful in trading the comdolls, aight?