Currencies Like The Loonie

Risk aversion is the Forex market driver today, thanks to the Fitch downgrade of Japan. Even though equities aren’t being much affected by the latest news, currencies are. High beta currencies like the Canadian dollar are dropping, thanks to a desire for safe haven. Loonie is headed lower against the US dollar today, even though its own credit rating is remains solid. Canada retains the highest credit rating with all the agencies, but that isn’t helping the Canadian dollar today on the Forex market. The Japan downgrade has shaken things up a bit, and the US dollar is gaining against the loonie today. However, even though the Canadian dollar is down against the greenback, it is up against other high beta currencies, including the UK pound. With the situation in Europe so uncertain, it isn’ ...

The Canadian dollar had a pretty bad week as talks about the European debt crisis plagued the Forex market, driving traders away from riskier commodity currencies. Fears that Greece would exit the eurozone and that the crisis is spreading to Spain hammered the loonie, as the Canadian currency is usually nicknamed. Domestic fundamentals were actually good for the currency. Manufacturing sales climbed 1.9 percent in March and consumer price inflation was 0.4 percent in April. Economists believe that Canada would the first country from the Group of Eight to raise its interest rates. The loonie is likely to strengthen then, but for now the currency remains depressed. The Canadian dollar posted losses against the greenback each day of this week. The currency was flat one day against the yen, ...

Canadian dollar is getting a boost today against the US dollar as employment news turns out more positive than expected. Loonie is higher against its US counterpart on the good news, even as risk aversion in general weighs on other high beta currencies. Canadian dollar is heading higher today, thanks to a strong employment report. According to Statistics Canada, employment rose to 58,200 in April. This came on the heels of a jump of 82,300 in March. The good news is supporting the idea of a relatively strong Canadian economy — especially when compared against the US economy. Additionally, some analysts and Forex traders are seeing this news as an argument in favor of boost the interest rate. So far, the Bank of Canada has been reluctant to raise borrowing costs. Now, with evidence of ...

USD trading broadly higher (except against the JPY) as the Greek political impasse is raises concerns and increases risk aversion. The IMF remained firm saying that Greece must deliver necessary economic reforms and that it is not acceptable for the country to seek laxer loan terms. German officials are speaking out as well calling the latest developments ‘very worrying' and saying that Greeks must decide whether or not they want to stay in the euro. It is another light day for economic data in the US with weekly mortgage applications rising by +1.7% and March wholesale inventories due out at 1000ET. UST yields continues their descent across the curve with the 10-year yield falling below the 1.80% level as a result of both increased risk aversion and increased speculation of QE3. The ...

USD is trading firmly against the majors (except the JPY) with the Dollar Index advancing to approach the pivotal 80.00 level. With little economic data due out today, the market's focus remains on political developments in Europe and the elevated uncertainty is seeing traders shift away from risky assets and into safe havens. US Treasury yields are lower with the 10-year yield currently around 1.84% and US equities are lower with the DJIA and S&P 500 currently down by -0.60% and -0.68% respectively. The dollar is strongest against the commodity currencies (AUD, NZD, CAD) amid growth concerns and significant technical declines in commodities. Gold (XAU/USD) is currently trading below a long term trendline support which began at the lows in Oct. 2008 and crude oil is currently below its 200- ...

The Canadian dollar climbed against the euro today as declining manufacturing of the eurozone weakened the shared 17-nation currency. Canada’s currency erased losses versus the US dollar and was flat against the Japanese yen. It is not surprising that the Canadian currency gained against the euro, considering the shrinking eurozone manufacturing and the unexpected growth of German unemployment. Yet it is surprising to see the growth-related loonie to hold ground versus the safe currencies of the United States and Japan, considering the negative sentiment of Forex traders. The slower-than-expected growth of US employment worsened already sour mood of investors, but somehow the Canadian dollar was able to withstand the impact of the bad news. Bank of Canada Governor Mark Carney was ...

Dollar Weaker ahead of FOMC USD softer against all of its major counterparts except for the British pound. Sentiment is improving today as global equities are broadly higher and yield spreads in Europe continue to ease. US Treasury yields are up with the 10-year yields approaching the pivotal 2.00% and the dollar index is lower as it remains below its daily cloud and Kijun line. Due out shortly at 0830ET are March durable goods orders which are expected to decline by -1.7% from the prior +2.2% on the headline print. The Federal Open Market Committee (FOMC) concludes its 2-day meeting today and with no change expected on policy, the focus will be on the bank’s updated projections and Chairman Bernanke’s press conference. With recent commentary from some of the more hawkish Fed officials ( ...

Fundamental Analysis EUR Spain's EUR 10 billion austerity measures did not ease investor worries the country is likely to be the next to demand a bailout. The borrowing costs for Spanish benchmark 10-year bills rallied almost 20 basis points to 5.94% on Tuesday after Miguel Angel Fernandez Ordonez, the Governor of the Bank of Spain said the country's financials may need extra capital in case the economy slows more than predicted. USD Canadian currency declined reaching a 6-week record low against US Dollar on concern European crisis is regaining momentum amid slowing US recovery. The loonie fell 0.7% to CAD 1.0045 on Tuesday, the lowest figure since February 27. Currently USD/CAD is trading at CAD 1.0018. GBP After a steep loss of 2.2% on Tuesday, FTSE 100 index recovered on Wednesday ...

Canadian dollar is heading lower as commodities struggle today. Oil prices are having an especial effect on the loonie today, as they are very connected to the performance of the Canadian currency. Also weighing on the Canadian dollar is the disappointing employment news reported by the government. Canadian dollar is struggling against the US dollar as worries about the global economy, as well as specific concerns in Canada, weigh on the loonie. The loonie is sensitive to commodity prices, and struggling commodities translate into difficulties for the Canadian dollar. As its major export, oil is especially influential when it comes to forex trading with the Canadian dollar. A drop in oil prices has been pressuring the loonie. Also causing problems for the Canadian dollar is the ...