In the absence of economic data from Canada?s calendar, the Canadian dollar slid against the US dollar while investors looked ahead at FOMC?s meeting tomorrow. Speculation of carry trade liquidation may also have played into a falling Canadian dollar, especially against the yen.
As energy prices rocket, Canadians are cutting back on air conditioning and heating. High energy prices continue to dampen consumer spending across the board. Housing and transportation are increasingly coming under the focus of energy-savers.
http://www.canada.com/nationalpost/financialpost/story.html?id=fa53db3d-acf2-46e6-8686-458365f7a52c&k=58774[I]Source: Financial Post[/I]
Declining oil prices continue to push the CAD lower. Fifty percent of Canada?s exports consist of commodities which includes oil. Additionally, the CAD lost ground as conservative investors parked their money in the USD for protection.
AGF, one of Canada?s biggest publicly traded fund management firms, announced a 62% advance in their second quarter earnings. AGF?s net income was reported at C$53.6 million. High profits resulted from strong mutual fund sales.
[I]Source: Yahoo Finance[/I]
[/B]In the absence of economic data from Canada?s calendar, the Canadian dollar slid against the US dollar while investors looked ahead at FOMC?s meeting tomorrow. Speculation of carry trade liquidation may also have played into a falling Canadian dollar, especially against the yen. The USDCAD remains in a tight trading range, looking for a possible breakout on the release of Canadian GDP this Friday. The USDCAD was most recently quoted up at 1.0712.
[/B]The TSX saw little movement today as energy companies such as Suncor Energy Inc. and EnCana Corp. rose together with oil. Oil jumped 51 cents today while a US report unexpectedly showed a drop in oil inventories. Offsetting energy gains, Canadian National, Canada?s biggest railroad company, fell 40 cents to C$52.85. The benchmark Toronto Stock Exchange was most recently quoted down 3.18 points at 13,660.70.
[/B]Speculation that investors were lightening their portfolios of high risk assets sent Canadian 10-yr bond prices soaring. The 10-year bond?s yield, along with government debt yields around the world, dipped as investors flocked to safer investments. The Canadian 10-yr yield was quoted down at a three week low of 4.58 with a price of 95.710.