The Loonie was no match to the dollar in yesterday’s trading. But it wasn’t any surprise. Heck, a less-dovish-than-expected FOMC meeting minutes, what did you expect? USD/CAD finished the day higher at 1.0169 from 10.0164.
Minutes of the most recent FOMC meeting showed that the Fed may actually end QE sooner than expected. Of course, without any economic data from Canada, the Loonie was as vulnerable as a puppy to market sentiment.
Our forex calendar still won’t have anything from Canada today so make sure you keep tabs on reports from its counterparts. Data from the U.S. and euro zone could move the currency today so don’t miss them!
Another day, another loss! The Loonie extended its losing streak to a fifth straight day as USD/CAD inched 12 pips higher to close at 1.0194. What fueled the selloff this time?
Blame it on oil prices, homie! With the price of “black crack” sinking sharply yesterday, demand for the Loonie died down as well. Remember, oil is one of Canada’s top exports, so where oil prices go, the Loonie usually follows.
Hopefully, today’s CPI and retail sales reports (due at 1:30 pm GMT) will bring better news. Who knows, they might even serve as a catalyst for a reversal!
The headline CPI is expected to show a 0.3% increase in prices, partially reversing the 0.6% decline we saw in December. Meanwhile, core CPI is anticipated to print a 0.2% uptick following the 0.6% slide in December.
As for retail sales, survey says that we can expect to see a 0.3% slide for the month of December, while the core retail sales figure is predicted to print a 0.1% uptick. Keep in mind that the wholesale sales report released earlier this week hinted at a possible downside surprise in retail sales, which could lead to further losses for the Loonie.
Make that a clean sweep! The CAD bulls got creamed last week, as USD/CAD closed higher every single day! USD/CAD finished Friday at 1.0230, up 26 pips from its opening price. When will the bleeding stop?!
We can thank poor data for the Canadian dollar’s poor performance to end the week, as retail sales figures failed to hit their targets. Headline sales printed a decline of -2.1% in growth last month, while retail sales recorded a -0.9%. This was after they were projected to print figures of -0.3% and 0.1%, respectively.
In other news, inflation remains subdued in Canada, as the headline and CPI reports printed rates of 0.1% on both accounts. This means that the Bank of Canada still has room to keep rates at low levels, which fundamentally weakens the Canadian dollar.
No bigges on the docket from the Rockies early in the week, but make sure you hit up my USD commentary for some potential market movers for USD/CAD!
Due to the political risks associated with the Italian elections, risk aversion was once again in vogue yesterday. As a result, the Canadian dollar, like most major currencies, gave up a lot of ground to the safe haven U.S. dollar and the low-yielding yen. USD/CAD, for instance, ended the day at 1.0265, 41 pips higher from where it was during the Asian trading session.
Early election polls in Italy showed that the race between the Bersani and Berlusconi camps is very tight. No one is in a clear lead, which has resulted in speculation that we could see a hung parliament. The uncertainty surrounding Italy’s next leadership has caused traders to seek the safety of the dollar and the yen.
Nothing on Canada’s economic calendar today so events taking place in other major economies will probably drive the Loonie’s price action. Also pay attention to market sentiment, as continued risk aversion could cause USD/CAD to rally again today.
Is that a doji I see on the daily chart of USD/CAD? Could this be the start of a comeback for the Canadian dollar?
With no hard data on tap from Canada yesterday, it’s no surprise that we saw USD/CAD stay in consolidation mode. Unfortunately, we may see more of the same as we’ve still got nothing coming up from Canada.
Still, make sure that you stay on your toes as we’ve got U.S. durable goods orders headed our way during the New York session, so this–along with broad market risk sentiment–may dictate USD/CAD price action.
Aha! Despite the lack of economic reports, the Loonie was still able to finish the day with a win against the dollar. USD/CAD closed lower at 1.0233 from its opening price of 1.0263. Where have all the Loonie bears gone?
They might be in hibernation, but some analysts warn that the move in the pair yesterday could be nothing more than just a pullback. After all, USD/CAD has been rising relentlessly for the past few weeks.
But I don’t know. That assumption still remains to be seen. Who knows, perhaps data due from Canada today will be able to give it enough boost to sustain its rally. The current account report, due at 9:30 am GMT, is seen to print a 16.9 billion CAD deficit. If you plan on buying the Loonie, keep your fingers crossed for a better-than-expected number!
Aaaand they’re back! The Loonie bears came back to town yesterday after Canada printed a weak economic report. USD/CAD is back above 1.0300, which is around 68 pips higher than yesterday’s open price.
The Loonie bulls didn’t have any chance yesterday especially when Canada’s current account deficit narrowed down to only 17.3 billion CAD instead of 16.9 billion CAD. Another possible reason why the Loonie weakened is that traders are getting cautious ahead of the GDP report today at 2:30 pm GMT. With consumer spending coming in weak lately, market players don’t have high hopes for this data.
But hey, you never really know what happens until it happens, right? Keep close watch for USD/CAD’s 1.0300 and 1.0400 levels if you’re planning to trade Canada’s growth report. A surprisingly strong reading could shock the markets and cause a USD/CAD selloff while another weak reading could push the pair all the way to 1.0400.
The Loonie is back in the green, baby! After giving up ground to the dollar on Thursday, the comdoll was able to pare some of its losses on Friday as USD/CAD closed 16 pips lower at 1.0285.
Analysts say that the Canadian GDP report which came in just as expected at -0.2% for December boosted the currency. I know some of you might be thinking that the figure doesn’t sound much good news, however, the figure actually translates to a 0.7% uptick for Canada’s annual GDP growth in December.
I wonder if the Loonie will be able to extend its gains today given that there won’t be any economic data released from Canada. Market sentiment will most probably dictate its direction, so make sure you gauge the market’s mood! Remember that the currency usually does well when risk appetite is up!
No data? No direction! Because there were no major economic releases in both Canada and the U.S., USD/CAD was unable to find a clear trend yesterday. It simply moved horizontally as it found resistance at the 1.0300 area and support around the week open at 1.0271. It closed the day at 1.0279, barely changed from its opening price.
No major economic reports from Canada again today, but I think we could possibly see USD/CAD break out of its consolidation if the ISM Non-Manufacturing PMI from the U.S. misses forecast. It’s predicted to print a reading of 55.0, slightly lower than the previous month’s 55.2. Be careful out there!
USD/CAD edged lower during yesterday’s trading as the pair dipped to the 1.0260 area. Is this a sign that USD/CAD is retreating from its recent rallies? Or will today’s economic reports from Canada push the pair back up?
Canada didn’t release any economic data yesterday but it seems that Loonie traders wanted to take profits off their USD/CAD long trades prior to today’s set of top-tier reports. The BOC is set to make its monetary policy decision at 3:00 pm GMT and outgoing BOC Governor Carney is expected to withdraw some of the hawkish statements he made in the past. The central bank isn’t expected to change interest rates but downbeat remarks from Carney could trigger another USD/CAD rally.
The Canadian Ivey PMI is also set for release at 3:00 pm GMT. The figure is slated to dip from 58.9 to 56.2, showing that the expansion in the manufacturing industry slowed down in February. A weaker than expected data could also set off Loonie selling. If you’re into trading the news, then USD/CAD could give you some opportunities to catch big pips today!
The Loonie loomed around its weakest level in almost three quarters versus the safe haven Greenback after the Bank of Canada (BOC) announced yesterday that it wouldn’t hike interest rate anytime soon since inflation slowing faster than initially anticipated. USD/CAD began the day at 1.0278, rose to 1.0337, and then settled at 1.0312.
According to central bank policymakers, inflation would probably remain low in the near term as the economy still has a lot of excess capacity. As such, they have decided to keep the benchmark interest rate at 1.00%.
The Ivey Purchasing Managers’ Index also failed to support the Loonie. It came in significantly worse than expected as it printed a reading of 51.1 for the month of February. The forecast was a reading of 56.2.
Today will be another big day for the Loonie as two major reports are scheduled to come out. The first one, the report on building permits, is projected to show a 5.4% rise, opposite the 11.2% decline seen the month before.
Meanwhile, the second one, Canada’s trade balance, is anticipated to show a 600 million CAD deficit for the month of January. Although that might sound huge, it’s actually notably lower than the December’s 900 million CAD deficit.
Let’s see if the positive forecasts on the reports will be able to help the Loonie pare its losses.
Who’s the weakling now? Thanks to positive risk sentiment and Canadian data, the Loonie was able to gain back most of its intraweek losses against its counterparts. USD/CAD fell to 1.0289 after hitting an intraday high at 1.0330.
Canada’s building permits printed a 1.7% growth for the month of January, which is a lot better than the 10.4% decline in December. Even its trade balance report surprised to the upside when it only showed a 0.2 billion CAD trade deficit instead of the 0.6 billon CAD deficit that many had expected.
Let’s see if the Loonie can get any support today. At 2:30 pm GMT Canada is set to release its employment numbers. While the employment change is expected to show that more workers found jobs, the unemployment rate is also expected to tick higher from 7.0% to 7.1%.
And don’t forget, the U.S. NFP report will also be released around the same time! Because lots of traders are paying attention to Uncle Sam’s employment numbers, the Loonie pairs could be influenced more by the NFP instead of Canada’s own figures.
Good luck trading today, fellas!
Let’s call it a stalemate! USD/CAD ended the day unchanged as the Loonie held its ground against the Greenback’s advances. After trading as high as 1.0316 and as low as 1.0234, the pair eventually settled right at its opening price of 1.0288.
Strong Canadian employment numbers helped the Loonie to combat the Greenback’s power, which stemmed from better-than-expected U.S. NFP results. Canada posted an increase of 50,700 jobs last month, which is absolutely insane considering forecasts were only anticipating growth of 7,800 jobs. Consequently, this was enough to keep in the unemployment rate at 7.0%, even though it was predicted to rise to 7.1%.
No doubt, this comes as great news and puts some concerns to bed, but y’all should be careful not to put too much weight on this single month’s worth of data. Remember, one month doesn’t make a trend!
Looking ahead, we don’t have much to work with this week; Canada doesn’t have a single red flag on the economic calendar. In the meantime, y’all should check out what the U.S. has to offer if you plan on trading the news with USD/CAD. Peace out and good luck, homies!
It was a good day for the Loonie as the lack of reports from the U.S. and Canada made traders remember that Canada also had good employment numbers last week. USD/CAD closed 23 pips lower than its open price after dropping to an intraday low of 1.0254.
Canada won’t be releasing any economic report today, so make sure you pay attention to reports from the other major economies that might affect the appetite for the high-yielding currencies. I hear that the U.K. is set to print its manufacturing production numbers today. Do you think that it will have an impact on the Loonie?
Good luck and good trading, kids!
That 1.0250 minor psychological level is still holding like a boss for USD/CAD! The pair moved sideways for almost the entire day as it spiked up to a high of 1.0284 then settled right back where it started for the day. Will we see more movement today?
The lack of economic data from both the U.S. and Canada kept USD/CAD stuck in a range for most of the day. Today could be a different story though as the U.S. is set to print its retail sales and core retail sales figures for February. Both headline and core figures are expected to show a 0.5% uptick for the month as a stronger than expected figure could boost USD/CAD. Keep an eye out for the actual data due 1:30 pm GMT.
As for Canada, its economic agenda is still empty for today. However, the Loonie could also be affected by the U.S. crude oil inventories release at 2:30 pm GMT. Stay on your toes!
The Loonie just couldn’t get any lovin’ past 1.0250! In yesterday’s trading, USD/CAD once again got rejected at the support area. At the end of the New York session, the pair settled at 1.0278 with the Loonie scoring a 22-pip loss for the day.
The lack of economic reports from Canada could be keeping the currency from rallying past the level. Unfortunately for the Loonie, our forex calendar is still blank for top-tier reports from the country today. With that said, it would be a good idea for you to continue keeping tabs on market sentiment. Remember that the currency usually rallies when risk appetite is up. Good luck!
Way to go, Loonie! USD/CAD was finally able to close below 1.0250, a level which it has gotten rejected off a few times. By the day’s close, the pair was down 49 pips below its opening price at 1.0224.
There wasn’t any market-moving data that fueled the Loonie’s move. Luckily for the comdoll, the dollar weakened across the board following the release of positive U.S. reports.
Are we seeing a bit of risk appetite dictate price action? Maybe. If this carries on in today’s trading, we’ll probably see the Loonie extend its gains when data from the U.S. continue to surprise to the upside. Read up more about them in my USD commentary.
Last Friday was a terrific day for the Loonie, which chalked up another impressive win over the Greenback. For the second day in a row, USD/CAD ended lower to greet the weekend 32 pips below its daily opening price at 1.0192.
With no Canadian reports to shake up Loonie price action, the Canadian currency traded with the tides of risk sentiment. Fortunately, they favored risk taking last Friday. But this week, it’s a totally different story! The Loonie has already erased all of its gains from last Friday, as risk aversion seems to be creeping back into the markets, thanks to renewed debt crisis concerns in the euro zone.
Looking ahead, we have foreign securities purchases coming out at 12:30 pm GMT. Word on the street is that we’ll see a 7.85 billion CAD figure for the month of January, a nice improvement from the -1.92 billion CAD reported in December. Though this release isn’t usually much of a market-mover, it could help take the heat of the Loonie if it prints a big upside surprise.
Slow and steady was the way of the Loonie in yesterday’s trading. The dollar had the upper hand in the earlier part of the day as USD/CAD tapped an intraday high of 1.0252. But the comdoll was able to put its A-game on during the New York session, closing with a 3-pip gain at 1.0222.
The better-than-expected Foreign Securities Purchases report allowed the Loonie to start the week off with a win. Data foe January showed that demand for Canada’s securities amounted to 13.34 billion CAD during the month, way more than the 7.85 billion CAD forecast and erasing the 1.92 billion CAD deficit that we saw for December 2012.
Later today at 12:30 pm GMT, we’ll get more data from Canada. The manufacturing sales report for January is eyed to come in at 0.7% while wholesale sales is anticipated to print at 0.4%.
Better-than-expected figures could help the Loonie extend its gains. But be careful, okay? With concerns about a contagion in the euro zone back in vogue, we could see the currency trade according to market sentiment.
With risk aversion dictating action in the markets, the Loonie stood no chance in its battle against the Greenback. Buyers dominated USD/CAD trading, pushing the pair up 49 pips to close at 1.0271.
As if euro zone contagion fears weren’t enough to scare traders away from the comdoll, Loonie traders also had to deal with some ugly reports on the domestic front. According to the most recent report, manufacturing sales fell by 0.2% in January. Not only is this figure quite the opposite of the 0.7% uptick that many had expected to see, but it was also revealed that the 3.1% decline in December was revised further down to 3.3%. Ay caramba!
No wonder the Bank of Canada has been sounding dovish as of late!
Nothing on the economic calendar for Canada today, but south of the border, the U.S. is set to hold the FOMC statement at 6:00 pm GMT. This event usually sets off fireworks for dollar pairs, so watch USD/CAD closely!