Forex Investment and Currency Trading

The soft close in US equities set the scene for a cautious Asian session with regional bourses tumbling across the board (Nikkei -1.83%, HSI -2.28%) and JPY outperforming. However, risk aversion soon evaporated as Europe and London entered the fray with a more upbeat tone and US stock futures began to rally, while government bonds became offered, and commodity driven currencies outperformed across the board (AUD, NOK, NZD).
In terms of data, today’s advance release of US Q3 GDP may well be crucial in setting the general tone heading into month end.
USD/CAD drifted lower overnight. Oil consolidated yesterday’s losses as it [...]

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USD/CAD – While price action Tuesday suggested that the USD rebound may be slowing, the CAD failed to pick up any substantial support at all over the past 24 hours and the USD continues to look bid. Liquidation of long CAD positions and covering of USD shorts gave USD/CAD the initial leg up last week and now the market seems to be moving into outright USD bull trades with the market through some important resistance points. A daily close above the 55-day moving average (1.0755) will give the USD further impetus for a full retracement of the 1.09/1.02 drop in [...]

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USD/CAD
After yesterday’s broader market shake-out, it feels a bit like a back-to-the-drawing-board day. Price action was certainly hinting at the risk of a squeeze higher in USD generally Monday. With little on the domestic agenda today – apart from more commentary from Mr Carney and Mr Flaherty during their parliamentary testimony this afternoon (and really, what more can he possibly say on the CAD at this stage?) – the CAD will still be driven by short term flows and risk appetite. Asian equities slipped, Europe is mainly positive and US equity futures are, so far, showing little inclination to do [...]

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The CAD remains very volatile; late day gains yesterday have been erased overnight despite some CAD-supportive M&A news – Harvest Energy Trust purchased by Korea National Oil Corp for just over CAD4bn, China Minmetals, the state metals trader, noting at a conference that it was looking to buy gold mine operations in Australia and Canada – and positive data from China. China’s GDP rose 8.9% in real terms in the Q3 year, in line with expectations and underlining the rapid rebound in the economy so far this year; government lending is providing massive support for the economy but positive news [...]

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