December 31, 2013

    CAD Strength to Close Out 2013

    By / December 31, 2013

    Good morning, The US dollar and Euro are underperforming this morning on low trading volumes. The Canadian dollar gained 2/3 of a cent yesterday, though is closing out the year down nearly 7% against the USD. Most economists/analysts believe we should see further strength in the US dollar into mid-year on anticipation of an end in US QE, followed by stabilization thereafter. Spain has announced plans to exit the European Stability Mechanism (ESM), started one… Read more

    CAD Remains Weak on Quiet Trading

    By / December 30, 2013

    Good morning, The Canadian dollar is unchanged though remains near the bottom of its recent trading range against the US dollar as markets continue to trade on light holiday volume. It will be a quiet news week, with much of the world celebrating scattered holidays. US pending home sales are expected to rise 1.1% in today’s November release, up from October’s 0.6% drop. Manufacturing PMI out of China, the US and Britain are the key… Read more

    CAD Gains on GDP and Low Volumes

    By / December 23, 2013

    Good morning, The USD is weak and CAD strong leading into the holiday week that will bring minimal economic news and low trading volumes. Expect rates to remain vulnerable to any large flows/position-balancing throughout the week. The Canadian dollar has caught a bid on the back of better than expected GDP in October, coming to print at 0.3% vs. the expected 0.1%. The Canadian dollar has gained over one-cent this morning from last week’s lows… Read more

    CAD Sinks on Weak Inflation, Retail Sales

    By / December 20, 2013

    Good morning, The Canadian dollar has dropped substantially and remains near a 3.5yr low against the US dollar following worse than expected inflation and retail sales data today. Core CPI dropped 0.1% on expectations of a 0.1% rise, while retail sales dropped 0.1% on expectations of a 0.3% gain. Further weakness in Canadian fundamentals could open up the door for an interest rate cut in 2014. The Canadian National Energy Board recommended that the government… Read more

    Fed Announces Cut in Stimulus, USD Gains Over 1%

    By / December 19, 2013

    Good morning, The Federal Reserve announced yesterday they would begin cutting monthly stimulus to $75B from $85B beginning in January, as market participants had largely anticipated; the move sent the US dollar surging 1%, though they have stabilized today. News of the taper was somewhat offset by the announcement that interest rates will remain at record lows until unemployment falls to well past 6.5% (the original employment level threshold). The net result of the Fed… Read more

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