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By Nick, May 24, 2013 6:26 pm

The Canadian dollar fell today as commodities declined on talks that riskier assets have gained too much in the previous days. Such speculations reduced the appeal of currencies tied to performance of raw materials.

US durable goods orders grew 3.3 percent in April, adding to evidences of economic growth in the United States and fueling speculations that the Federal Reserve will reduce stimulus. Such talks boosted the US dollar.

Stronger greenback led to the drop of commodity prices. The Standard & Poor’s GSCI Index of 24 raw materials dropped 0.1 percent today, while the weekly decline was at 1.2 percent. Futures for crude oil (the major Canadian export) lost 0.4 percent to $ 93.87 per barrel in New York.

USD/CAD GMT was up from 1.0301 to the closing price of 1.0319, while its daily high was at 1.0354. EUR/CAD closed at 1.3348 after jumping from 1.3324 to 1.3436 (the highest level since April 19) intraday. CAD/JPY went down from 98.94 to 97.92.

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By Nick, May 21, 2013 8:46 am

Canadian dollar is losing ground today, dropping as the the US Federal Reserve considers reducing its economic stimulus efforts. It’s also not helping the loonie that oil prices are dropping again.

Dollar strength is the story across the board today, and that is affecting the loonie as well. The news that the Federal Reserve might reduce its quantitative easing program is contributing to dollar strength today, and the Canadian dollar is following those flows.

With the dollar stronger, commodities are struggling. Oil prices are lower today, and that affects the loonie as well. Oil is Canada’s main export, and lower oil prices mean a weaker Canadian dollar. As a result, it is little surprise that the Canadian dollar is a little bit lower, too.

Many Forex traders are also looking forward to changes coming in Canada and speculating about what’s next. Bank of Canada head Mark Carney will soon move across the Atlantic to take over as the head of the Bank of England, and there is interest in what happens next for policy after he is gone.

At 13:10 GMT USD/CAD is up to 1.0283 from the open at 1.0242. EUR/CAD is up to 1.3231 from the open at 1.3194. GBP/CAD is little lower, moving down to 155.6145 from the open at 1.5625.

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By Nick, April 23, 2013 10:17 pm

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By Nick, April 18, 2013 11:39 am

Canadian dollar is getting a little help today, heading higher after recent losses. The loonie’s success against the greenback is being helped along by higher commodity prices.

Canadian dollar is getting a boost against the US dollar today, following a few days of relative weakness. The Bank of Canada recently lowered its economic growth forecast for the country, and it wasn’t helping that commodities were heading lower, either. With oil prices struggling, the Canadian dollar was displaying difficulty, since oil is a major export, and a major source of economic support.

Commodity prices are on the rise again, though, and that is helping the Canadian dollar. Loonie is a commodity currency, and sensitive to price changes. With gold trying to regain the $ 1,400 an ounce level, and with oil prices back above $ 87 a barrel, loonie is getting some help.

However, the help might be short-lived. If concerns about the global economy continue, high beta currencies like the loonie will be sold in favor of safe haven currencies like the US dollar. For now, though, Canadian dollar is working on a recovery.

At 16:35 GMT USD/CAD is down to 1.0254 from the open at 1.0266. EUR/CAD is up to 1.3427 from the open at 1.3378. GBP/CAD is up to 1.5695 from the open at 1.5643.

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By Nick, April 17, 2013 1:53 pm

The Canadian dollar dropped against safer currencies today as both the Bank of Canada and the International Monetary Fund revised negatively their projections of Canada’s economic growth. The loonie managed to outperform the euro.

The Bank of Canada kept its main interest rate at 1 percent during today’s monetary policy meeting. The central bank said that the average growth in 2013 will be at 1.5 percent, down from the previous projection of 2 percent. Despite the negative news, BoC Governor Mark Carney mentioned that an interest rate hike is likely in future.

The hawkish stance of Carney was already known to traders, so they paid more attention to the downside revision of the projected growth. The IMF added to the woes of the Canadian currency as it has revised its forecast in the same manner, promising an annual growth by 1.5 percent.

USD/CAD went up from 1.0206 to 1.0267, while its daily high of 1.0292 was highest since March 13, and CAD/JPY ticked down from 95.50 to 95.20 as of 19:09 GMT today. Meanwhile, EUR/CAD declined to 1.3368 from the opening of 1.3448 and the intraday high of 1.3521 (the strongest since March 8).

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By Nick, April 15, 2013 10:12 am

Commodities are taking a plunge today, and commodity currencies like the Canadian dollar are falling right along with them. Loonie is especially impacted by the drop in oil prices.

Commodity prices are much lower as the US session moves into mid-morning trading. Gold has dropped below $ 1,400 an ounce, and oil prices are heading toward $ 88 a barrel. This bad news for commodities is weighing on currencies, like the Canadian dollar, that are tied to commodities.

Loonie is being especially affected by lower oil prices. Oil is Canada’s biggest export, and the drop in prices is having a big effect, especially against the US dollar.

General risk aversion is dominating all markets today, including equities. Forex traders are reluctant to invest in high beta currencies and commodity currencies, and that is weighing on the loonie quite a bit.

The future might see a different result, especially if all the recent stimulus in Europe and the United States spurs inflation, but for now the fear is driving the markets, and that means a preference for less risky assets. The loonie just doesn’t fit that bill today.

At 13:39 GMT USD/CAD is up to 1.0203 from the open at 1.0144. EUR/CAD is up to 1.3350 from the open at 1.3306. GBP/CAD is up to 1.5626 from the open at 1.5566.

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By Nick, April 12, 2013 8:43 am

After enjoying a solid performance earlier, the Canadian dollar is now heading much lower on a variety of economic concerns and a drop in commodities.

Loonie is headed lower today as the latest US economic data bodes ill for Canada’s largest trading partner. On top of that, there are concerns about the eurozone, and that is weighing on risk appetite in general. Cyprus is once again throwing a wrench into the workings of the eurozone, and there is more talk of euro exit. With risk appetite fading, high beta currencies like the Canadian dollar falter in Forex trading.

Also not helping the situation is a drop in commodities, particularly oil. With gold prices heading down toward $ 1,500 an ounce, and with oil prices dropping toward $ 90 a barrel, commodity currencies like the loonie are in a tough spot. Canadian dollar is particularly dependent on oil prices for support. The latest IEA report about lower demand for the rest of this year isn’t helping oil prices, and neither is the risk aversion.

For now, Canadian dollar is likely to struggle. There’s just too much uncertainty, and not a lot of news that’s positive for the loonie.

At 15:17 GMT USD/CAD is up to 1.0134 from the open at 1.0105. EUR/CAD is up to 1.3272 from the open at 1.3238. GBP/CAD is up to 1.5571 from the open at 1.5546.

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By Nick, April 2, 2013 8:09 pm

The Canadian dollar continued to rise today as positive macroeconomic data from China and the United States invigorated performance of commodity currencies and made them more attractive to Forex traders.

China’s non-manufacturing Purchasing Managers’ Index rose from 54.5 to 55.6 in March. US factory orders jumped 3 percent in February after falling 1 percent in January. The favorable reports added to the positive market sentiment, making investors seek higher yield.

Not everything was positive for currencies related to raw materials though. The Standard & Poor’s GSCI Index of commodities declined 0.2 percent. Crude oil, Canada’s major export, was among losers, falling by 0.2 percent.

USD/CAD was near 1.0149 as of 2:03 GMT today after falling from 1.0166 to 1.0145 yesterday. EUR/CAD went down from 1.3006 to 1.2991, while CAD/JPY advanced from 92.03 to 92.21.

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By Nick, March 28, 2013 9:33 am

Loonie is losing ground against its major counterparts today, thanks in large part to disappointment over the latest US employment data. Earlier, the Canadian dollar was fluctuating against its counterparts, but it appears that the loonie is moving solidly lower now.

The latest initial unemployment claims in the United States has put a bit of a damper on the loonie’s gains. The Canadian dollar often does well when there are indications that its largest trading partner, the United States, is economically strong. However, the latest labor data out of the United States represents something of a setback.

Even though Canadian data issued earlier in the week provided some pleasant surprises, the loonie is struggling. Additionally, in the background, is the sneaking suspicion that there is a housing bubble about to burst in Canada. All of this is weighing against the Canadian dollar, and the fact that oil prices are paring their earlier gains isn’t helping, either.

For now the loonie is likely to continue to show relative weakness against its major counterparts.

At 14:47 GMT USD/CAD is up to 1.0169 from the open at 1.0164. EUR/CAD is also higher, rising to 1.3046 from the open at 1.2988. GBP/CAD is up to 1.5418 from the open at 1.5376.

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By Nick, March 20, 2013 8:19 am

Canadian dollar is on the rise today, gaining against the US dollar as better economic data is expected, and as the situation in Cyrpus eases some. Today it’s about risk-on in Forex trading, and loonie is reaping some of the benefits.

For the first time in three days, the loonie is gaining ground against the greenback. Concerns about Cyprus are fading, since the European Central Bank has agreed to continue providing liquidity to Cyprus until it can renegotiate a bailout. The news has eased a number of fears about the eurozone and the euro, and that is helping general risk appetite today.

Canadian dollar is also getting help from the fact that January retail sales are supposed to see an increase. When the report is issued by Statistics Canada tomorrow, many expect good things. On top of that, the Federal Reserve is expected to keep things in stimulus mode, supporting the US economy, and oil prices are inching higher.

There’s just enough good news to go around, and that is providing Canadian dollar an edge against the US dollar.

At 14:51 GMT USD/CAD is down to 1.0265 from the open at 1.0275. EUR/CAD is up to 1.3292 from the open at 1.3221. GBP/CAD is up to 1.5563 from the open at 1.5508.

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