Forex Investment and Currency Trading

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 [...]

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Global markets are starting the week on a positive note. The news services are attributing this positive mood to G-20, after it mentioned that stimulus measures around the World will be maintained to ensure the economic recovery. This brought a renewed bid to risky assets. Stocks and commodity prices are higher, while the USD is lower. Also adding to the increased risk appetite is news out of China. Moody’s raised the country’s outlook to positive from stable. Non Farm Payroll data on Friday was positive due to the decent +91k revision in payrolls of the Aug-Sep period. Although the unemployment [...]

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The October employment report was disappointing, on balance, with a 190,000 drop in nonfarm payrolls and a surge in the unemployment rate to 10.2%. The establishment survey (which measures payrolls) painted a slightly better picture of the labor market than the household survey (which measures the unemployment rate). The 190,000 decline in nonfarm payrolls was larger than market consensus (-175,000) expectations, but this was countered by net upward revisions of 91,000 to the prior two months. In addition, there were a few encouraging signs among the components, most notably a 34,000 gain in temporary employment and unchanged government payrolls (which [...]

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The CAD benefited from the rebound in risk appetite and strength in commodity prices yesterday to stage a solid looking turnaround versus the USD – though it should also be noted that the CAD has gained notable ground versus the EUR and JPY over the past couple of days also. It seems that the CAD’s recent period of under-performance may be poised to reverse. With speculative long CAD exposure reduced following the burst of BoC commentary on the CAD late last month, the path for renewed CAD appreciation looks a little clearer. Higher commodity prices should make renewed CAD gains [...]

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