Tag Archive: $CAD

Great Graphic: Is the Canadian Dollar a Buy Soon against the Mexican Peso?

2018-03-06

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2018-03-06

This Great Graphic composed on Bloomberg shows the Canadian dollar against the Mexican peso since the start of last year. There have been three big moves. The Canadian dollar trended lower against the peso as it corrected from the sharp sell-off induced in great measure to the candidate Trump's rhetoric against Mexico. However, shortly before the inauguration, the peso began recovering continued through H1 17.

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FX Daily, March 05: Italian Election Weighs on Italian Assets, but Little Systemic Risk Seen

2018-03-05

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2018-03-05

The US dollar is narrowly mixed. The Japanese yen remains firm. The dollar appears stuck in a narrow range. Near JPY105.20 the seems to be some short-covering pressure in front of JPY105. On the top side, the greenback is encountering offers in front of JPY105.80. Sterling is firm against the dollar as it recovers against the euro. Before the weekend, the euro reached GBP0.8950, its best levels since last November. The euro is testing GBP0.8900...

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FX Daily, February 28: It Takes Powell to Convince the Market that Yellen was Right

2018-02-28

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2018-02-28

Many market participants think they heard Fed Chair Powell give a fairly strong signal that he favored a more aggressive course. The implied yield on the December Eurodollar futures rose five basis points to 1.535%. The December Fed funds futures contract rose three basis points.

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FX Daily, February 27: Markets Tread Water; Powell is Awaited

2018-02-27

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2018-02-27

The capital markets seem unusually subdued. The US dollar is mostly slightly firmer, except against the euro and Swiss franc among the majors. The MSCI Asia Pacific Index managed to eke out a small gain (0.2%), for a third advancing session, without the help of China, Taiwan, Korea or India. It was really a Japanese story. The Nikkei rallied 1.1%, while excluding Japan the MSCI benchmark was off 0.25%.

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FX Daily, February 26: Dollar Slides as Equities Extend Recovery

2018-02-26

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2018-02-26

The US dollar has begun the new week on heavy footing. It is being sold against virtually all the currencies, major and emerging market currencies. There is one exception, and although the local market is not open, the Mexican peso is under some pressure that could be linked to a dispute between the President of Mexico and the US that prompted the former to cancel a visit to the latter.

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FX Daily, February 23: Dollar Firms; VIX Set to Close Lower for Second Week

2018-02-23

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2018-02-23

A light economic schedule in North America may help the markets close the week on a quiet note. Perhaps if there is one number that captures this sense, it may be the VIX. It is soft and barring a new disruption today, it is poised to close lower for the second consecutive week, for the first time this year. The US dollar is steady to higher today and barring a reversal, will close stronger on the week against the major currencies.

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FX Daily, February 22: All Eyes on Equities

2018-02-22

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2018-02-22

The dramatic reversal of US shares yesterday in the last hour of trading has once again pulled the proverbial rug beneath the feet of investors. The turn down, moreover, occurred near important technical levels, seemingly adding to the significance. Global equities have followed suit.

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FX Daily, February 16: Worst Week for the Dollar since 2015-2016, While Stocks Continue to Recover

2018-02-16

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2018-02-16

Nearly all the major currencies have risen at least two percent against the US dollar this week. The Canadian dollar is an exception. It has risen one percent this week ahead of today's local session. Sterling is becoming another exception after disappointing retail sales. It is up just shy of two percent. The Dollar Index is off 2.3% on the week, which would be the biggest weekly loss since 2015.

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FX Daily, February 13: Tuesday’s Two Developments

2018-02-13

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2018-02-13

There are two important developments today. First, the recovery in the global equity markets is being challenged. Second, the yen has strengthened across the board, and is now at its best levels against the dollar since last September's low. The MSCI Asia Pacific Index extended Monday's recovery with another 0.5% gain. However, looking closer, the momentum faltered.

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FX Daily, February 12: Equity Markets Find Firmer Footing, Dollar Softens

2018-02-12

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2018-02-12

The most important development today has been the stability in the equity markets after last week's meltdown. The recovery from new lows in the US before the weekend set the tone for today's moves. Tokyo markets were on holiday, and the MSCI Asia Pacific Index excluding Japan snapped a seven-day slide with a nearly 0.6% gain.

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FX Daily, February 09: Equity Sell-Off Extends to Asia, but More Muted in Europe

2018-02-09

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2018-02-09

The 100-point slide in the S&P 500 and the 1000-point drop in the Dow Jones Industrials yesterday spurred more bloodletting in Asia. The 1.8% drop in the MSCI Asia Pacific Index (for a 6.7% loss for the week) may conceal the magnitude of the regional losses. At one point the CSI 300 of the large Chinese mainland shares was off more than 6% before closing off 4.3% (and 10% for the week). The H-shares index was down 3.9% and 12% for the week.

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Great Graphic: Major Currencies Year-to-Date

2018-02-08

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2018-02-08

This Great Graphic was created on Bloomberg. It shows five major currencies against the US dollar this year. To avoid giving a misleading impression, the currencies are index to start this year at 100 and all the currencies are quoted in the European style of how many dollars the currency purchases. These kinds of charts are not so much for trading, but they help illustrate the relative moves that can be masked by nominal price changes.

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FX Daily, February 07: Guns and Butter May Resolve US Legislative Logjam

2018-02-07

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2018-02-07

After a volatile session in North America, the major equity indices closed higher. In fact, the 1.75% rise in the S&P 500 was the best since November 2016. Asian equities stabilized, and the MSCI Asia Pacific Index was able to eke out a small gain. The European markets are moving higher is also posting early gains and the Dow Jones Stoxx 600 is about 0.45%, which threatens to snap the seven-day slide. However, the main challenge now is that the S&P...

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FX Daily, February 05: Dollar Consolidates while Equity Rout may be Ebbing

2018-02-05

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2018-02-05

Asian equity markets were weighed down by losses in the US markets ahead of the weekend. The MSCI Asia Pacific Index was off 1.4% after the 1.0% pre-weekend loss. The Nikkei gapped lower and shed 2.5% and has fallen in eight of the past nine sessions. The notable exception in Asia was the Shanghai Composite. The 0.75% was led by the financial sector amid talk that a report later this week will show a strong jump in yuan lending from banks, which...

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FX Daily, February 01: Fed’s Hawkish Hold Keeps Dollar Consolidation Intact

2018-02-01

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2018-02-01

The Yellen Fed ended on a high note. She took over the reins the of Federal Reserve an implemented a strategic normalization process monetary policy, and helped engineer not only the first post-crisis rate hikes but also the beginning of unwinding its balance sheet. Most reckon she has done an admirable job at the Federal Reserve, not only in terms of the economic performance on her watch but also the nimble execution policy.

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FX Daily, January 24: Dollar Takes Another Leg Lower

2018-01-24

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2018-01-24

North American session sold into the dollar's upticks and Asia followed suit, taking the greenback to new multi-year lows against the euro and sterling while pushing it below the JPY110 level for the first time since last September. US trade action has become latest element of the narrative the seeks to explain the dollar's slide and the decoupling of the greenback from interest rates.

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FX Daily, January 23: Dollar Stabilizes Near Recent Lows

2018-01-23

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2018-01-23

The US dollar has come back better bid in late Asian activity. The session highlight was the BOJ meeting. BOJ maintained forecasts and policy. There was a small tweak to the inflation assessment, noting that prices were skewed to the downside, and said there was no change in inflation expectations. Last time it has said expectations were weakening. It also reiterated that there was no policy implication to the bond operations.

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FX Daily, January 22: Dollar Remains Heavy

2018-01-22

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2018-01-22

The US dollar closed last week on a firm note, but it has been unable to build on its gains to start the new week. News that Germany's SPD agreed to enter formal negotiations with Merkel's CDU/CSU alliance saw the euro open in Asia around a half a cent higher. However, sellers emerged near $1.2275 but seemed to lose their nerve as the pre-weekend low near $1.2215 was approached.

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FX Weekly Preview: ECB and BOJ Meetings Could be Key to Dollar Direction

2018-01-22

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2018-01-22

The US dollar has been marked lower since the middle of last month. It flies in the face strong growth, rising inflation expectations, and greater conviction that the Fed will continue to raise interest rates this year. Moreover, an oft-cited knock on the dollar, the widening current account, may be offset this year by the impact from US corporations repatriating earnings that have been kept offshore.

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