Forex Investment and Currency Trading

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 [...]

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 [...]

USD weakness pushes commodity prices higher
Commodity prices generally firmed in October, drawing support from a range of external factors, most notably a weaker USD. Fundamentals provided added impetus for the market, but improvements in the demand and supply picture remain tentative and are coming from a low base. Investor sentiment has improved, and a sustained recovery in investor demand could fuel a price rally. However, investors will likely be on the lookout for signs of a sustained global economic recovery, which as of now is still uncertain.
Crude oil: boosted by USD weakness, but upside is limited for now
Crude oil (WTI) [...]

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 [...]