Back-to-back win, baby! With no major data released from Canada and the U.S., the Loonie traders traded on expectations for the week ahead. USD/CAD fell by another 10 pips yesterday as it finished at .9908. What’s in store for the oil-related comdoll today?
Only the quarterly corporate profits report at 12:30 pm GMT is scheduled for release in the land that’s famous for maple syrup. That means that we have more room for QE3 or even ECB bond-buying speculations!
Be careful though, as market players are pretty evenly divided on whether or not the Fed will actually announce its QE3 plans later this week. For the newbies out there, you should know that high-yielding currencies like the Canadian dollar usually go up against the Greenback whenever the Fed announces its plans to actively stimulate the economy.
The Loonie continued to get more lovin’ in yesterday’s trading. Before closing the day with a 30-pip win against the dollar at .9878, it was able to tap an intraday high of .9842.
Aside from the slight pick-up in risk appetite, it also helped that oil prices continued to trade higher. If Forex Gump is right and crude oil continues to rise, we could see the Loonie extend its gains. Remember that the currency shares a positive correlation with the commodity because oil is Canada’s biggest export.
With that said and given that there are no major reports on tap for the Loonie today, be sure you keep tabs on the commodity markets! Good luck!
Due to the contrasting results between U.S. and Canadian economic data, the Loonie was unable to hold its ground versus the haven Greenback. USD/CAD, which had started the day at .9878, was sitting at .9894 by the end of the U.S. trading session.
The Raw Materials Price Index (RMPI) from Canada only showed a 0.9% increase, notably worse than the 2.1% gain forecast. On the other hand, the U.S. the Preliminary GDP confirmed that the country indeed grew 1.7% during the second quarter while the Pending Home Sales beat forecast by more than twice the expected amount.
Today, the only report coming out of Canada is its current account balance. It’s predicted to show a 15.2 billion CAD deficit, 48% higher than the deficit seen the previous month. A rising deficit is normally seen as bearish for the currency as it could mean that foreign demand for the Loonie-denominated assets is falling.
Is the Loonie losing its luster? The comdoll extended its losses against the dollar yesterday as risk aversion kicked in. USD/CAD traded higher after opening at .9894. By the New York session close, the pair was up at .9924.
Aside from market sentiment turning sour, it also did not help the Loonie that Canada’s current account for Q2 2012 printed a 16 billion CAD deficit. Analysts had only braced for a 15.2 billion discrepancy.
But fret not, Loonie bulls! Who knows, the monthly Canadian GDP report may just give the Loonie its much-needed boost. Due to be released at 12:30 pm GMT today, the market is eyeing the economy to have grown by 0.1% in June.
Forex Gump wrote an article on how the report could affect the currency, so make sure you give it a read if you decide to trade the news. Good luck!
The Loonie flexed its muscles at the end of the week versus the safe haven Greenback amid the signs of another round of stimulus measures by the Federal Reserve in the near future. USD/CAD closed out Friday at .9858, 65 pips lower from its opening price that day.
The Loonie also received a huge boost from the better-than-expected Canadian GDP. It showed that Canada’s economy expanded by 0.2% in July, which was twice the expected amount.
No data coming out of Canada today, the rest of the week is filled with high profile reports.
On Wednesday, the Bank of Canada (BOC) will announce its decision on interest rates. The market widely expects the central bank to keep rates unchanged at 1.00%. This means that any deviation from market forecast will have a big effect on the Loonie’s price action. A surprise rate cut could result in a sell-off in the Loonie while a rate hike could lead to a strong rally.
On Friday, the building permits report, employment data, and the Ivey PMI will be published. Individually, these reports are already market-movers, so expect a lot of volatility once they are released on Friday.
With Canada enjoying a Labor Day holiday, USD/CAD’s price action was limited to a 30-pip range. The tug-o-pip eventually ended with the pair closing 19 pips lower than its open price. What’s in store for the Loonie today?
There are no economic reports scheduled from Canada today, so the Loonie bulls and bears will have to turn to the other major economies for market-moving reports. Take note of a possible return of volume and volatility in the charts as traders come back from their summer vacations.
The RBA is also set to announce its interest rate decision today, so hang tight in case the comdoll traders decide to buy or sell the Loonie too!
Looks like someone’s not ready to end his vacation! USD/CAD was still a dead market yesterday even though Canadian and U.S. bankers had returned from a three-day weekend. After a bit of sideways action that saw the pair trade within a 25-pip range, USD/CAD settled at .9858, just 1 pip below its opening price.
I know what you’re thinking… What a bore, right? But without any major reports on the calendar from Canada, the Loonie’s inactivity shouldn’t have been too much of a surprise.
Plus, you have to remember that the BOC is set to hold its rate decision later today (1:00 pm GMT), so traders might have been apprehensive about committing to new Loonie positions right before the big event.
So what should we expect from the central bank later on?
Well, for one, you can expect it to keep interest rates unchanged at 1.00%. Also, most believe the BOC will maintain its hawkish stance, but there is a chance that BOC head Mark Carney will change his tone. After all, Canada’s recent reports haven’t been all too good as of late. Still, the markets are expecting Carney to repeat his talk of withdrawing stimulus, so if his statement later on turns out weak, it could finally lead to a correction on USD/CAD.
Ouch! After lollygagging at the .9850 level, USD/CAD powered higher and capped the day 51 pips above its open price. Did the BOC’s interest rate decision have anything to do with the price action?
Not really. In fact, the Loonie even strengthened minutes after the BOC printed its decision. Market players were surprised that the central bank stuck to its hawkish tone, saying that gradual removal of stimulus might still be needed in the future.
Unfortunately for the comdoll bulls, investors quickly took profit as they wait for the ECB to take its spot in the forex scene. No report will be released from Canada today, so you might want to focus on what the ECB has to say.
Word on the hood is that a rate cut is expected, along with some sort of bond-buying program. Comdolls like the Loonie could take hits if the ECB disappoints, so make sure you watch your trades closely!
What a rally by the Loonie! The Canadian currency took advantage of the improvement in risk sentiment yesterday, allowing USD/CAD to dip to a low of .9809 before closing at .9828. Will it be able to hold on to its gains this NFP Friday?
Although Canada didn’t release any data yesterday, the Loonie didn’t get left behind on the risk rally which stemmed from the ECB’s decision to implement more bond purchases.
While most of the Loonie’s gains could be attributed to risk sentiment, today is a different story. The Loonie has a lot on its plate as Canada is set to release it jobs data and its Ivey PMI. After dipping by 30.4K in July, Canada’s employment change figure is expected to show a 9.9K rebound in hiring for August. This should be enough to keep their jobless rate steady at 7.3% for the month. Keep an eye out for the actual release at 1:30 pm GMT because another disappointing figure might force the Loonie to return its recent gains.
Meanwhile, their Ivey PMI is expected to drop from 62.8 to 61.2 in the same month, suggesting that the expansion in the manufacturing industry slowed down in August. If you’re trading the Loonie, note that the actual release of the Ivey PMI is at 3:00 pm GMT and that a weaker than expected reading might be negative for the Canadian currency.
Don’t forget that today is also NFP Friday, which means that we should brace ourselves for a lot of action during today’s U.S. session. Do drop by my U.S. economic commentary and check out Forex Gump’s NFP predictions if you’re brave enough to play this release!
Chalk up another one for the Loonie! Thanks to contrasting jobs figures reports, the Canadian dollar drilled the greenback, as USD/CAD sank 45 pips lower to finish at .9783.
An additional 34,300 jobs were added to the Canadian economy last month, which was more than three times greater than the projected 9,900 increase. Meanwhile, the unemployment rate remained steady at 7.3%.
Combining this with the news that Uncle Sam posted jobs gains of just 96,000 – way below the 123,000 forecast – it’s no surprise that the Canadian dollar ruled the day!
Meanwhile, the Ivey PMI came in at 62.5, a slight decrease from the previous month’s 62.8, but still above the anticipated reading of 61.2.
The Canadian dollar’s rally could have even been more impressive had it not been for the dismal building permits report, which indicated that permits granted dropped by 2.3%. It was projected that permits would decrease by just 1.5%.
Nothing on tap today, but you’d best be served keeping a close eye on risk sentiment, as this will most likely be the major driving theme in the markets over the next couple of days.
The Loonie may have slammed on the brakes after its strong rally last Friday but the Canadian currency still managed to outpace the Greenback by a small margin during yesterday’s trading. USD/CAD closed at .9775, 5 pips below its .9780 open price.
Even though most major currencies got hit by profit taking yesterday, the Loonie was able to hold its ground as it still ended up higher against the lower-yielding Greenback. Canada didn’t release any top-tier reports yesterday but positive interest rate expectations from the BOC, combined with speculations of QE3 from the Fed, provided downward pressure on USD/CAD.
Only the trade balance is set for release from Canada today and their deficit is expected to have narrowed from 1.8 billion CAD to 1.4 billion CAD in July. A smaller than expected deficit could mean that Canada’s export industry is starting to gain momentum, which would be positive for the Canadian economy and the Loonie. Keep an eye out for the actual release at 12:30 pm GMT.
Once again, the Loonie outperformed the Greenback! With Moody’s threatening to downgrade U.S. debt, USD/CAD slipped another 44 pips as it fell to .9731 and recorded its fourth straight slide. When will USD/CAD’s downtrend end?
The Loonie had no trouble rising up the charts yesterday, even though Canada published a not-so-upbeat trade balance report. Canada’s trade deficit expanded from 1.9 to 2.3 billion CAD in July, instead of shrinking to 1.4 billion CAD. As it turns out, merchandise exports fell 3.4% that month, led by a huge drop in energy exports. Energy exports experienced dropped 8.5% as both the volume of exports and oil prices slid in July. Still, the markets didn’t seem to be too bothered by these figures, as they kept buying up the Loonie anyway!
No reports from Canada today, but there’s a good chance the markets will be dancing to the tune of risk sentiment. With the euro zone set to hold three major events today and the FOMC statement just a day away, things could get messy. Don’t forget to practice smart risk management if you plan to trade today!
Poor Loonie! Among the commodity currencies, it was the only one that scored a loss to the dollar in yesterday’s trading. USD/CAD rallied after it hit an intraday low at .9715, closing the day 34 pips above its opening price at .9766.
There wasn’t any piece of economic report released from Canada and oil prices remained steady. So what caused the Loonie’s loss?
Nothing.
Market analysts say that the currency’s price action yesterday was nothing more than a correction or a pullback. After all, the Loonie has been on a strong run lately. So with our forex calendar still blank for market-moving reports for the Loonie, keep that in mind when you trade today. Peace out!
And just like that, USD/CAD makes a new yearly low! The pair broke down from consolidation after the Fed announcement yesterday and dipped below the .9700 major psychological level. What the heck happened?
The Fed finally announced another round of quantitative easing during the FOMC statement yesterday, but this time their program was kept open ended. The U.S. central bank said that they would buy $40 billion worth of mortgage-backed securities each month, but did not state until when. By the looks of it, Bernanke and his men must be really worried about the U.S. economy’s performance and are willing to do everything in their power to boost the economy.
There were no major releases from Canada then, but the Loonie sure took advantage of the sharp U.S. dollar selloff that took place!
Up ahead, Canada is set to print its manufacturing sales data for July. After dipping by 0.4% in June, a 0.4% rebound is expected for the following month. But if the actual figure misses the mark, the Loonie might be forced to return its recent gains. Be careful of potential profit taking today, too!
This is why you don’t count your chickens before they hatch! The Canadian dollar looked like it was gonna continue dominate the dollar, as USD/CAD set a new low at .9633 last Friday. However, the Canadian dollar lost all momentum, as the dollar came roaring back during the New York session. By the end of the day, USD/CAD closed at .9706, up 23 pips from its opening price.
One reason why the Canadian dollar may have lost a step was due to worse-than-expected manufacturing sales figures. A report released last Friday indicated that sales dropped by 1.5% last July, after it was expected to increase by 0.4%. Furthermore, June’s sales were revised lower to reflect a decrease of 0.8%, after initial reports printed flat growth.
With these new figures, manufacturing sales have now dropped three consecutive months! So much for the summer boom!
For today, all we’ve got lined up is foreign securities purchases figures at 12:30 pm GMT. This report measures the net amount of Canadian financial assets purchased by foreigners. Early forecasts are saying that 11.3 billion CAD worth of assets were bought last July, which would be a nice turnaround from the -7.89 billion CAD we saw the month before. This would indicate that demand for Canadian assets has picked up, which should bode well for the Canadian dollar.
Ah, do you taste that? It’s the sweet taste of victory! For the second straight day, the Loonie bears were able to pummel the bulls to the ground. From its opening price at .9706, the bears took USD/CAD higher to .9748.
The Foreign Securities Purchases report was the only economic data published yesterday. It showed a 6.67 billion CAD figure (the total value of stocks, bonds, and other money-market assets purchased by foreigners), significantly lower than the 11.30 billion CAD the market had initially expected.
Canada’s economic cupboard is completely empty today. This means market sentiment will be key in determining where the Loonie will be headed today.
“Chillin’ like a villain, baby!” That was the motto for USD/CAD yesterday, as it stuck within a tight range of just 30 pips. Will the consolidation continue or is a breakout on the horizon?
Unfortunately for all you breakout fans, we’ve got nothing lined up from Canada today. Nevertheless, make sure you hit up my U.S. commentary, as we’ve got potential FX market catalysts from the US housing data on tap. If those reports come in far from forecast, we could see the loonie move as well during the New York session.
Without any economic data from Canada, the Loonie just continued to range like a Range Rover against the dollar. USD/CAD traded sideways all throughout yesterday’s trading before ending the day 3 pips below its opening price.
Our forex calendar is still blank for reports for the Loonie today. However, we do have a few top-tier data from the U.S. and euro zone that could affect market sentiment and move the comdoll. Just keep in mind that the Loonie usually rallies when risk appetite is up, okay? Good luck!
Like the Aussie, its comdoll buddy, the Loonie fell victim to risk aversion in the markets yesterday. USD/CAD rocketed to an intraday high of .9817 before it levelled off to close only 21 pips higher than its open price. What gives?
As I mentioned in my AUD piece, China’s manufacturing data released yesterday didn’t do the comdolls any favors. It showed another contraction, which signals potential lack of commodity demand from the world’s second largest economy. Of course, it might have helped that oil prices finally put a plug on its slipping prices.
Canada is set to release its CPI reports today at 12:30 pm GMT. The headline figure is expected to come in at 0.4% in July while the core figure is seen at 0.3%. Both figures were at 0.1% in June. Meanwhile, the wholesales data also scheduled to come out at the same time is expected to print a 0.1% contraction for June.
There was no partyin’ for the Loonie on Friday. It ended the week with a 3-pip loss for the day as USD/CAD closed higher at .9767 from .9764.
Worse-than-expected inflation data from Canada might have weighed down the currency. Excluding volatile items, the core CPI reading for August came in just as expected at 0.3%. However, the headline figure came in lower than expectations at 0.2% versus the 0.4% forecast.
The report may not sound that disappointing. However, some market junkies argue that it could give the BOC one more reason to shed its hawkish feathers for dovish ones. (Remember that the BOC talked about increasing rates earlier this month.)
If you wanna get a deeper insight in the central bank’s future monetary policy decisions, you should tune in to BOC Governor Mark Carney’s speech later at 8:00 pm GMT. Hints about a shift in the BOC’s hawkish stance to a dovish one may send the Loonie trading lower agains the dollar so be on your toes!