The Canadian dollar continued to rally higher on raging energy prices, as crude oil jumped to $75/bbl in New York, helping boost the Canadian currency. Meanwhile, the run-up to tomorrow?s inflation report has been bullish for the Loonie, as USDCAD holds below 1.0450.
United Steelworkers, a Labor union, served two more 72-hour strike notices to forestry companies Island Timberlands and Timber West Forest Company. Union strikes could curtail raw log exports by 90 percent.
http://www.cbc.ca/money/story/2007/07/17/bcforestlabour.html[I]Source: CBC[/I]
Brent crude in London retreated to $76/bbl, driving the Canadian dollar lower against the US dollar. Because Canada is a major exporter of oil, the Canadian dollar is somewhat correlated to oil prices.
http://www.canada.com/nationalpost/financialpost/story.html?id=68f86170-de6e-4ba0-8ec4-6990c12bc800&k=22499
[I]Source: Financial Post[/I]
Uranium producer Paladin Resources Ltd. denied talks of a possible takeover from Canada based Cameco Corp. Acquisition rumors followed a drop in Paladin shares.
http://www.bloomberg.com/apps/news?pid=20601082&sid=a07D2MWCicCw&refer=canada
[I]Source: Bloomberg[/I]
[B]Currency Markets: USDCAD[/B]
The Canadian dollar continued to rally higher on raging energy prices, as crude oil jumped to $75/bbl in New York, helping boost the Canadian currency. Meanwhile, the run-up to tomorrow?s inflation report has been bullish for the Loonie, as USDCAD holds below 1.0450. Analysts are expecting a lower month over month print, but a surprise to the upside could fuel the Canadian dollar?s ascent. Interest rate futures are still calling for two more rate hikes by year end. The USDCAD was most recently quoted at 1.0433.
[B]Equity Markets: S&P/TSX Index[/B]
Currency was not the only market to get moved by surging oil prices; the S&P/TSX rode the wave for the most recently quoted gain of 37.76 points. Energy company Suncor was among today?s index leaders gaining C$1.93 to C$99.31. Meanwhile, Research In Motion Ltd. tacked on C$3.40 a share after one of Japan?s largest phone distributors agreed to sell RIM?s BlackBerrys in Japan next week. The S&P/TSX Index was most recently quoted up at 14,376.01.
[B]Fixed Income Markets: Canadian Government 10-Year Bond[/B]
The government bonds are losing appeal as equity and currency markets continue to thrive. Tomorrow?s consensus of lower inflation figures dragged down the yield, giving little hope of tightening at the Bank of Canada?s next meeting. The Canadian government 10-year bond was most recently quoted at 65.5 yielding 4.62
