Forex Investment and Currency Trading

Risk sentiment is more positive this morning and the CAD is taking advantage of the better mood to push broadly higher, producing the second best performance among the major currencies in the overnight markets behind the NZD. Equity markets are positive in Asia and Europe and US futures indicate a strong opening this morning; investors appear a little less concerned by the UAE/Dubai World issues this morning, with Dubai World stating that it was in “constructive” talks with investors on restructuring that covered less than half its total debt. The impression is perhaps growing that the situation is a “little [...]

[Read more →]

Risk is “on” in a big way so far Monday, lifting the NZD to the top performance spot on the day so far while the JPY and the USD slump. Metals and crude oil prices are pushing higher in response to the pro-risk backdrop and the CAD is trying to shake off last week’s drop in form that saw it fall broadly. Cross flows are generally a little more constructive for the CAD this morning, with a couple of exceptions; one notable factor is the strong bid under AUD/CAD earlier in the session which drove the cross to a new [...]

[Read more →]

The CAD has regained a little ground this morning as risk appetite improves. Oil prices have recovered a little to add to the CAD underpinning but after the recent shake out in equities and with some event risk ahead still – beyond today’s US GDP data, the FOMC meeting next week looms very large – scope for a CAD bounce may be limited at the moment, even if traders also think that the CAD sell off has been overdone after the constant stream of comment from BoC Governor Carney over the past few days. The rebound in the USD has taken [...]

[Read more →]

USD/CAD sold off during the Asian session, although not for any CAD-specific reason. It seems to have just been dragged along for the ride, along with NZD, as AUD rallied on growing expectations for a RBA rate hike tonight. USD/CAD hasn’t yet been able to break meaningfully out of the 1.07-1.10 range that we’ve seen for the last several days, although the risk is that it finally pushes through the bottom end of the range now that we’re past the event risk from the G7 meeting. The two key levels we need to break on the downside are 1.0660 (Sept. [...]

[Read more →]