Forex Trading - Canadian Dollar

Which Forex Currency Tracks What?

Fri, 27 Jun 2008 18:10:37 -0700

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The US Dollar is the most common currency that is commonly quoted in trade across the globe. It is one of the most popular currencies in the world. However, there are several other currencies that are actually not affected by the US Dollar movements in the forex market. These currencies may not be as popular as the US Dollar; nevertheless, they hold their own importance and are backed by several factors in their own countries that make them hold their ground strongly, in case of Dollar fluctuations.

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Canadian Dollar at a 1-Month High

Wed, 30 Jan 2008 19:44:37 -0800

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The Canadian Dollar traded at a 1-month high after the US Federal Reserve cut interest rates by half a percentage point to 3 percent increasing Canada's interest rates advantage over the US. ''The Canadian dollar looks good on a short-term basis,'' said Steve Butler, director of foreign exchange trading at Scotia Capital Inc. in Toronto. ''We'll see a little bit of a boost just on an interest-rate differential. I don't see the Canadian dollar doing a whole lot better. It may touch 98.50 cents per US dollar in the next day or so.'' The Bank of Canada cut its interest rate by a quarter of a percentage point to 4 percent on the 22nd of January. In an emergency move the same day, the Federal Reserve cut its federal funds target by three-quarters of a percentage point, prompting the Canadian Dollar to hit a 1-month high. The US borrowing rate is lower than Canada's for the first time in three years.

Canadian Dollar declines to a 5-week low on Subprime losses

Thu, 15 Nov 2007 16:01:16 -0800

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The Canadian Dollar hit a 5-week low in forex trading as investors sold higher yielding assets as concerns increased on slowing economic growth amid weaker manufacturing shipments and a continuation of the U.S. subprime issue. The Canadian Dollar, alongside the Australian Dollar, fell its second time in a week as government bonds rose as traders sold stocks and commodities such as gold. Barclays Plc, the United Kingdom's third largest bank, said it wrote down about 2.7 billion U.S. Dollars on credit related securities tied to the U.S. subprime mortgage collapse. ''The general theme of risk aversion will continue to push the Canadian dollar lower,'' said Jonathan Gencher, a vice president of foreign exchange sales in Toronto at BMO Capital Markets. ''The market continues to off-load some very long Canadian dollar positions.''

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The Canadian Dollar hits its highest in 30 years amidst commodity boom

Sun, 16 Sep 2007 04:56:53 -0700

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The Canadian Dollar reaches its highest level in 30 years as surging commodity prices increased the nation's exports and increased its economic growth. The Canadian Dollar also posted its biggest weekly advance against the the U.S. Dollar since September 1998 as crude oil rose to a record and gold traded at more than $700 an ounce. The strength in the Canadian Dollar has prompted speculation that it may trade on the same level as the U.S. Dollar for the first time since November, 1976. ''Parity is in the cards if the strength in commodities remains firm,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. In this past week, the Canadian Dollar advanced against the 16 most actively traded currencies except the Brazilian Real and the N.Z. Dollar. Alongside the Australian Dollar, the Canadian Dollar may continue its gains through to the second week as The U.S. Federal Reserve is set to cut its borrowing rate from 5.25 percent on September 18, making these currencies more attractive.

The Canadian Dollar rises on stronger than expected trade surplus

Fri, 08 Jun 2007 21:22:37 -0700

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The Canadian Dollar is stronger after a government report revealed that its trade surplus has increased to its highest level since December 2005. The Canadian Dollar's strengthened despite another government report revealing that there were fewer jobs created last month. Canada's trade surplus increased to 5.76 billion Canadian Dollars from 5.1 billion earlier in March. ''Today's economic data is net positive for the Canadian dollar,'' said Dustin Reid, a senior foreign-exchange strategist at ABN Amro Inc. in Chicago. ''In an environment where people are avoiding risk and readjusting their portfolios, we shouldn't expect bigger gains.''

Canadian Dollar hits 30-year high as commodities gain

Fri, 25 May 2007 22:04:43 -0700

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The Canadian Dollar has reached a 30 year high, riding on the strong prices of their commodity exports. Crude oil delivery rose 1.6 percent to $1.02 to settle at $65.20 a barrel. The value of gold, silver and copper also rose. Commodity trade accounts for 54 percent of Canadian exports. ``The price of commodities provides a long-term support for the Canadian dollar,'' said Francois Barriere, vice president for foreign exchange services at Laurentian Bank of Canada in Montreal. ``Long-term fundamentals are still very, very good for Canada. I see no reason why we shouldn't go to parity in the next 12 to 15 months.'' Weak U.S. home sales had caused the U.S. Dollar to fall, thus giving the Canadian Dollar a boost.

Canadian Dollar Rises on decreased jobless report

Sun, 11 Jun 2006 18:36:06 -0700

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The Canadian dollar has surged to 90.45 cents as the may jobless report shows that the unemployment rate has done down to 6.1%, which is the lowest point since December 1974.

The Canadian economy aquired 97,000 jobs in May which helped push down unemployment.

The dollar took off on the feeling that the positive employment news could support tighter interest rates in the months to come, BMO Nesbitt Burns economist Douglas Porter said in a research note.

"With U.S. growth clearly losing momentum and equity markets stumbling, the bank is likely to stay on hold for the next meeting in July, but the drum-tight labour market will keep their tightening bias very much intact and a post-Labour Day tightening is now a distinct possibility", BMO Nesbitt Burns economist Douglas Porter said.