Tag Archive: $CAD

FX Daily, May 12: Markets Becalmed Ahead of US data and Weekend

2017-05-12

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2017-05-12

The foreign exchange market is becalmed, and the major currencies are little changed. The US dollar is mixed, but mostly a little lower. Sterling is the weakest of the majors, off 0.3%, near $1.2850, having been rebuffed by offers in front of $1.30 several times. It has not recovered from the quarterly inflation report and Carney's press conference.

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FX Daily, May 10: Markets Adjust to North Korean Threat, Fifth Fall in US Oil Inventories and Trump Drama

2017-05-10

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2017-05-10

Investors absorbed a few developments that might have been disruptive for the markets with little fanfare. North Korea's ambassador to the UK warned that his country would go ahead with its sixth nuclear test, as South Korea elected a new president who wants to reduce tensions on the peninsula.

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FX Daily, May 08: Euro Bought on Rumor, Sold on Fact

2017-05-08

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2017-05-08

The euro initially opened higher in Asia following confirmation that Macron was elected the next president of France, but quickly fell below $1.0960 before bouncing back toward $1.10 only to be sold again in early Europe below the pre-weekend low near $1.0950. A break now of $1.0930 could signal a return to the lower end of the range seen since the first round of the French election near $1.0850-$1.0870.

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FX Weekly Preview: Dollar Drivers

2017-05-08

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2017-05-08

US retail sales and CPI should help bolster confidence that the Fed was right about the transitory nature of Q1 slowdown. Bank of England meets; Forbes will likely continue with her dissent, but likely failed to convince her other colleagues of the merit of an immediate rate hike. French politics are center stage, but German state election and South Korea's national election are also important.

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NAFTA Trade Update

2017-04-30

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2017-04-30

The trade tensions between the US and Canada set the Canadian dollar to lows for the year. The dollar's downside momentum against the Mexican peso has eased. The Canadian dollar looks attractive not against the US dollar but against the peso.

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FX Daily, April 26: Dollar Stabilizes Ahead of Trump and ECB

2017-04-26

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2017-04-26

The US dollar was marked down in response to the French election and saw some follow through selling yesterday, but the momentum had slowed, and now it is stalled. The greenback is posting upticks against nearly all the major currencies. There is a good reason to be cautious.

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FX Daily, April 25: Euro Consolidates Gains, Bond Market Sell-Off Continues

2017-04-25

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2017-04-25

The US dollar is again at the fulcrum of the foreign exchange market. The dollar-bloc currencies are under pressure, along with the Japanese yen, while the European complex is posting modest gains. The euro is consolidating in the half cent below $1.09. Yesterday's marked up in early Asia saw the euro complete the 61.8% retracement of the losses since the US election, which was found near $1.0935

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FX Daily, April 20: Dollar and Yen Push Lower

2017-04-20

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2017-04-20

With the exception of the yen, the US dollar is lower against all the major currencies. US Treasury yields are firm, extending yesterday's rise a little. This may help keep the dollar straddling JPY109, but unwinding long yen cross positions is helping underpin the other major currencies. The Dollar Index is making a new low for the week and appears poised to test support around 98.85-99..00.

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FX Daily, April 18: US Dollar Consolidates Yesterday’s Gains

2017-04-18

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2017-04-18

The US dollar is consolidating the gains scored late in the US session yesterday in response to a Financial Times interview with US Treasury Secretary Munchin who seemed to play down the strategic importance of Trump's recent complaint about the greenback's strength.

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US Jobs Growth Disappoints

2017-04-08

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2017-04-08

The US jobs growth slowed considerably more than expected in March and the disappointment pushed the dollar and equities initially lower. The US created 98k jobs in March, well below market expectations for around 175k jobs.  Adding insult to injury, revisions to the January and February data took off another 38k job.

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FX Daily, April 05: Dialing it Up on Hump Day

2017-04-05

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2017-04-05

he dollar is practically unchanged against the euro and yen in the first two sessions of the week. The pace can be expected to pick up starting Wednesday. Although the euro slipped through $1.0650, it was not sustained, and on Monday and Tuesday, the euro finished near its highs.

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Inclusion in SDR Does Not Spur Official Demand for the Yuan

2017-04-04

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2017-04-04

China's share of global reserves is in line with expectations prior to its inclusion in the SDR. Three factors influencing allocated reserves - valuation, portfolio decisions, and China's gradual inclusion in allocated reserves. The Swiss franc's as a reserve asset diminished, but the "other" category appeared robust.

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FX Daily, March 31: Greenback Finishing Weak Quarter in Mixed Fashion

2017-03-31

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2017-03-31

The US dollar fell against all the major currencies in the first three months of 2017. The weakness initially seemed to be a correction to the rally, which began before the US election last year. The dollar recovered in February, in anticipation of a hawkish Fed in March.

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FX Daily, March 23: Some Thoughts about the Recent Price Action

2017-03-23

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2017-03-23

The gains the US dollar scored last month have been largely unwound against the major currencies. The dollar's losses against the yen are a bit greater, and it returned to levels not seen late last November. The down draft in the dollar appears part of a larger development in the capital markets that has also seen the US 10-year yield slide 25 bp in less than two weeks. The two-year yield is off 17 bp.

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FX Daily, March 16: Greenback Consolidates Losses as Yields Stabilize

2017-03-16

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2017-03-16

The US dollar remained under pressure in Asia following the disappointment that the FOMC did not signal a more aggressive stance, even though its delivered the nearly universally expected 25 bp rate hike. News that the populist-nationalist Freedom Party did worse than expected in the Dutch elections also helped underpin the euro, which rose to nearly $1.0750 from a low close to $1.06 yesterday.

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FX Daily, March 13: Bonds and Equities Rally, Dollar Heavy

2017-03-13

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2017-03-13

Hit by profit-taking ahead of the weekend, despite US jobs data that remove the last hurdle to another Fed hike this week, the greenback remains on the defensive. It has softened against all the major currencies and many of the emerging market currencies. The chief exception is those in eastern and central Europe.

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FX Daily, March 10: US Jobs Data: Deja Vu All Over Again?

2017-03-10

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2017-03-10

A week ago, after nine Fed officials had spoken, the market widely expected Yellen and Fischer to confirm that the table was set for a rate hike later this month. They did, and the dollar and US interest rates fell. Now, after a strong ADP jobs report (298k), everyone recognizes upside risk to today’s national report, and the dollar has lost its upside momentum against most major currencies, but the Japanese yen.

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FX Daily, March 09: Pre-ECB Squaring Lifts Euro in a Strong USD Context

2017-03-09

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2017-03-09

The euro tested the lower of its range near $1.05 in Asia before short covering in Europe lifted back toward yesterday's highs near $1.0575. However, buoyed by the upside surprise in the ADP estimate of private sector jobs growth, the dollar is firmer against most other currencies today. The US 10-year yield is up 20 bp this week.

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FX Daily, March 08: Dollar Bid as Rates Firm

2017-03-08

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2017-03-08

The US dollar is moving higher against nearly all the other major foreign currencies today. As far as we can tell, the driving force remains interested rate considerations. US rates are rising in absolute terms and about Europe and Japan. The US 10-year yield is moving above the downtrend that has been in place since the day after the Fed hiked rates last December.

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