- 22 February 2012
USD gains on loonie following retail sales figure
The loonie took some losses against the US dollar in trading yesterday, after negative euro-zone news and a worse than expected Canadian Core Retail Sales figure caused investors to revert back to safe havens. The indicator came in at 0.0% following last month's reading of 0.4%. The USD/CAD extended its upward momentum following the indicators release before stabilizing right around the 0.9970 level.
- 18 January 2012
BOC leaves interest rates unchanged; CAD takes slight losses
News that the Bank of Canada (BOC) would leave national interest rates at 1% did not come as a shock to many traders as the move was widely expected. Still, the assumption that weak global data and the euro-zone debt crisis would prevent Canada from raising interest rates for at least another year led to some losses for the loonie in trading yesterday.
- 11 January 2012
Loonie moves up vs. USD amid risk taking
The Canadian dollar saw some fairly substantial gains against its American counterpart in trading on Tuesday. The loonie was bolstered following meetings between euro-zone leaders which led to risk taking among investors. The CAD, which is largely linked to commodity and equity prices, tends to move up following positive euro-zone news.
- 07 February 2012
Ivey PMI boosts loonie
The Canadian dollar saw some positive gains against its safe-haven counterparts yesterday, following the release of a better than expected Ivey PMI. The PMI is considered one of the leading indicators of Canadian economic health. The figure, which analysts were originally predicting to come in at 58.6, came in at a surprisingly strong 64.1. While gains were recorded against both the USD and JPY, investor risk taking following the release of the indicator caused the euro to gain on the loonie.
- 17 January 2012
Canadian rate statement may boost loonie
The Canadian dollar saw a very bullish day yesterday, as gains were recorded against the euro and US dollar. The closure of US markets yesterday, combined with continued negative news out of the euro-zone, fuelled the loonie's upward trend. With significant Canadian news set to be released today, the CAD will likely see another volatile day.
- 02 January 2012
Loose BoC monetary policy to weigh on CAD
A worsening global economic background does not bode well for the CAD. Economists have begun to downgrade their 2012 Canadian outlook and GDP forecasts as the gloom from Europe spills over into Canada. This hints that the BoC will loosen monetary policy in Q2 as events outside of Canada begin to influence the local macroeconomic outlook. Continued declines in commodity prices may also have a negative effect on the CAD. Since its peak in April the Thomson Reuters/Jefferies CRB Commodity Index has declined 17.8%. Crude oil prices have risen to close out the year near the $100 level, though any drop in prices will likely limit CAD gains. Perhaps in H2 the CAD will perform well should global growth and risk sentiment bounce back.