Yes, hard for most people who have ONLY lived through the markets with a strong commodity foundation to believe that the Canadian Dollar was once trading at 1.60/USD
Copper remains range-bound going into the weekend. The red metal seems to be contained, and not necessarily by U.S. data.
Most of the market chatter about the decision to extend Canadian oil pipelines down to the Gulf of Mexico has been on the commodity side of the trade, but currency markets have a huge stake in this story as well.
The USD/CAD is trending up this afternoon as the U.S. currency mounts a counteroffensive from yesterday’s slaughter. As it is, price has already bounced off the short-term support at $0.9875 established during the European trading session.
Currency traders and a like will be watching the latest British unemployment rate and Claimant Count Change announcements — essentially “jobless benefit claims” — this Wednesday at 5:30 EST. The numbers not only provide insight not only how the UK is faring but also can act as a health check on the euro zone.
As U.S. traders start their first trading day in 2012, price action thus far has been risk-positive with moves likely to bring short term profit taking on flight to safety trades left over from the final weeks in 2011.
The Canadian dollar or “loonie” is performing nicely against the U.S. dollar with an advance of 0.16% this afternoon. Stronger-than-expected Canadian wholesale inflation of 0.9% — beating the previous read of 0.5% — combined with stronger crude oil prices is fueling an interesting technical situation.
After months of central banks worrying that their currencies were too strong, it is still amazing just how much pressure they are now bringing to bear on the resurgent dollar.
Currencies for Australia, New Zealand and Canada, which have been beaten down amid a flight to the U.S. dollar, may rally against the dollar.
The U.S. dollar rose against many major currencies as investors fled stocks on fears sparked by the U.S. Federal Reserve, and signs of a slowdown of industrial production in China.