The Canadian dollar fell 0.5 percent as of 4:02 p.m. Toronto, against the U.S. dollar dropping from C$1.0325 yesterday to C$1.0375 today.
With the strong possibility of another global slowdown, one that really hasn't began to recover in any meaningful way, Matthew Strauss, senior currency strategist at Royal Bank of Canada, noted that Canada's reputation as strong producers of raw materials will help the currency and its bonds.
The European sovereign debt crisis is part of that concern, but even more so, and under-reported at this time, is the challenges facing China, who is battling the threat of inflation by increasing interest rates and regulating their property industry more.
But there's no doubt about the fact that China is the major consumer of base-metal commodities from Canada, and it's probably not a matter of whether or not demand will lower, but the degree to which it will.
That also has commodity countries like Brazil and Australia concerned as well, who have been counting on China to help their emerge out of the recession in a sustainable manner. That expectation is no longer a certainty for any country or company providing commodities to them.
It's unlikely the Canadian dollar will continue to fall, although if it happened for a short period of time, it would be advantageous to Canadian business, as the lucrative tourist season is coming, and Canadian exporters could compete better with a lower currency
Showing posts with label Canadian Dollar. Show all posts
Showing posts with label Canadian Dollar. Show all posts
Tuesday, May 18, 2010
Wednesday, May 12, 2010
Citigroup (NYSE:C) On Canadian Dollar
The Canadian dollar will regain parity with the U.S. dollar, according to Citigroup (NYSE:C), and should find support in the range of 1.0207 to 1.0225.
In a note to clients, Citigroup said in the short-term the Canadian dollar should reach 0.9931.
Last week's market turmoil brought the loonie down, but that won't last long, as the fundamentals are too strong to keep it at those levels.
The Canadian dollar is increasingly being thought of as a safe haven investment, as the economy of Canada remains strong, and they are positioned for a profitable and long run because of the natural resources available in the country, and the strong demand for those resources from China and other areas of the world, which will go on for many years.
The Canadian dollar will rise with the economic growth of the country, and with little or no sovereign debt issues, is being eyed by investors as an alternative to the U.S. dollar, along with gold.
In a note to clients, Citigroup said in the short-term the Canadian dollar should reach 0.9931.
Last week's market turmoil brought the loonie down, but that won't last long, as the fundamentals are too strong to keep it at those levels.
The Canadian dollar is increasingly being thought of as a safe haven investment, as the economy of Canada remains strong, and they are positioned for a profitable and long run because of the natural resources available in the country, and the strong demand for those resources from China and other areas of the world, which will go on for many years.
The Canadian dollar will rise with the economic growth of the country, and with little or no sovereign debt issues, is being eyed by investors as an alternative to the U.S. dollar, along with gold.
Thursday, April 15, 2010
Goldman Sachs (NYSE:GS) Says Canadian Dollar Rising Stronger than Expected
Future of Canadian Dollar
Goldman Sachs (NYSE:GS) raised its outlook for the Canadian dollar, saying over the next year it should be stronger than originally anticipated.
Goldman said the stronger-than-expected economic recovery has a lot to do with their changed outlook, and expect the Bank of Canada to raise interest rates in the third quarter in response.
Although I agree that the Canadian dollar will remain strong in light of the increasing demand for commodities by China and other emerging nations, I do question Goldman Sachs' assertion we're in a stronger recovery than thought, as there's still plenty to suggest if we're in a recovery at all, it's a very weak one.
Goldman Sachs (NYSE:GS) raised its outlook for the Canadian dollar, saying over the next year it should be stronger than originally anticipated.
Goldman said the stronger-than-expected economic recovery has a lot to do with their changed outlook, and expect the Bank of Canada to raise interest rates in the third quarter in response.
Although I agree that the Canadian dollar will remain strong in light of the increasing demand for commodities by China and other emerging nations, I do question Goldman Sachs' assertion we're in a stronger recovery than thought, as there's still plenty to suggest if we're in a recovery at all, it's a very weak one.
Tuesday, April 6, 2010
Canadian Dollar Trading at Parity with U.S Dollar
Canadian Dollar
For the first time since July 2008, the Canadian dollar has traded at parity with the U.S. dollar, and even beyond it today.
The increasing price of crude oil and inevitable raising of interest rates in Canada are cited as the key reasons behind the increase in value of the Canadian dollar.
This is familiar territory as it relates to crude oil, as the last time the Canadian dollar was trading at parity to the U.S. dollar, oil had reached a record high of $147.27 a barrel.
With commodity prices expected to continue to skyrocket, the Canadian dollar should remain strong for years to come against the dollar, and its past behavior will no longer be the norm as it passes into an entirely new era.
This will be great for Canadian consumers who should enjoy lower prices, but a challenge to exporter, whose prices will struggle to compete on the basis of the strength of the Canadian dollar.
For the first time since July 2008, the Canadian dollar has traded at parity with the U.S. dollar, and even beyond it today.
The increasing price of crude oil and inevitable raising of interest rates in Canada are cited as the key reasons behind the increase in value of the Canadian dollar.
This is familiar territory as it relates to crude oil, as the last time the Canadian dollar was trading at parity to the U.S. dollar, oil had reached a record high of $147.27 a barrel.
With commodity prices expected to continue to skyrocket, the Canadian dollar should remain strong for years to come against the dollar, and its past behavior will no longer be the norm as it passes into an entirely new era.
This will be great for Canadian consumers who should enjoy lower prices, but a challenge to exporter, whose prices will struggle to compete on the basis of the strength of the Canadian dollar.
Monday, January 18, 2010
Commodity Currencies Poised for Growth
Commodity Currencies
Although it's impossible to know the rate of growth and/or strength commodity currencies will grow against the U.S. dollar, it's going to be a good season of time for them as commodity prices are set to increase for some time to come.
When talking of commodity currencies, we're referring to the dollars of Australia, Canada and New Zealand; all countries which rely on commodities as a large part of their economies.
History has shown that for the most part these three currencies move in unison with one another based on how the price of commodities are moving, and so all of them should be a good bet over the next couple of years to strengthen against the U.S. dollar, which continues to collapse in value.
China's seeming resumption of economic domestic growth is a good sign for these three currencies as well, as it implies China is buying up commodities again in preparation for more growth, assuming it's for that purpose and not to protect its own exports and currency primarily, although it definitely entails that.
Commodity Currencies
Although it's impossible to know the rate of growth and/or strength commodity currencies will grow against the U.S. dollar, it's going to be a good season of time for them as commodity prices are set to increase for some time to come.
When talking of commodity currencies, we're referring to the dollars of Australia, Canada and New Zealand; all countries which rely on commodities as a large part of their economies.
History has shown that for the most part these three currencies move in unison with one another based on how the price of commodities are moving, and so all of them should be a good bet over the next couple of years to strengthen against the U.S. dollar, which continues to collapse in value.
China's seeming resumption of economic domestic growth is a good sign for these three currencies as well, as it implies China is buying up commodities again in preparation for more growth, assuming it's for that purpose and not to protect its own exports and currency primarily, although it definitely entails that.
Commodity Currencies
Wednesday, January 13, 2010
Commodity Currencies Fall China Reserves Ratio Announcement
China Reserves and Commodity Currencies
After China announced it would be tightening up its reserve requirements for its banks, commodity currencies across the globe fell in value in response to the possibility China demand could slow down, which would hinder what small hope of a minimal economic recovery there is at this time.
The central bank of China said in a statement yesterday that the required reserve ratio would be increased by half a percentage point starting next weak, an obvious action showing China is going to tighten up their monetary policy.
Nations with strong links between their currency and commodities had their currencies hit lows against the U.S. dollar as a consequence of the announcement, which could dramatically influence their value for the year. The Australian, New Zealand and Canadian dollars were especially impacted by the news.
What's interesting about all this, is China seemed to be surging forward on increasing its commodity stocks for 2010, as December imports had increased by 56 percent for 2009, and commodity exports in December grew by a solid 17.7 percent, seeming to imply they were importing commodities based on consumer demand for products.
Even so, in general, commodities are expected to do well this year, but it seems those estimations have been based upon the idea we are actually in a real recovery something in my thoughts is far from being proven as a reality.
China Reserves and Commodity Currencies
After China announced it would be tightening up its reserve requirements for its banks, commodity currencies across the globe fell in value in response to the possibility China demand could slow down, which would hinder what small hope of a minimal economic recovery there is at this time.
The central bank of China said in a statement yesterday that the required reserve ratio would be increased by half a percentage point starting next weak, an obvious action showing China is going to tighten up their monetary policy.
Nations with strong links between their currency and commodities had their currencies hit lows against the U.S. dollar as a consequence of the announcement, which could dramatically influence their value for the year. The Australian, New Zealand and Canadian dollars were especially impacted by the news.
What's interesting about all this, is China seemed to be surging forward on increasing its commodity stocks for 2010, as December imports had increased by 56 percent for 2009, and commodity exports in December grew by a solid 17.7 percent, seeming to imply they were importing commodities based on consumer demand for products.
Even so, in general, commodities are expected to do well this year, but it seems those estimations have been based upon the idea we are actually in a real recovery something in my thoughts is far from being proven as a reality.
China Reserves and Commodity Currencies
Saturday, January 9, 2010
Commodities Driving Canadian Dollar Up
Canadian dollar price going up on commodities
The Canadian dollar continues to strengthen against the U.S. dollar as commodity prices going up helped Canada's exports increase to their strongest level in about a year.
Against 13 of the 16 most traded currencies, the Canadian dollar price went up as a number of commodities like natural gas, crude oil and copper continue to go up in price.
Oil may be the best driver of the loonie, as it continues to rise in price in the midst of the cold spell hitting the world.
Crude oil for February delivery increased in price by 4.3 percent this week to $82.75 a barrel on the New York Mercantile Exchange. It went as high as $83.52, the top level since October 2008. Crude is Canada’s largest export.
Copper for March delivery topped at $3.544 a pound on Jan. 7, the largest price since August 2008.
Natural gas for February delivery soared to a one-year intraday high, $6.108 per million British thermal units.
About half of all export revenue from Canada comes from raw materials, making the long-term prospects of the Canadian dollar somewhat bullish.
Commodity currencies should do well over the next several years unless an unforeseen situation arises.
Canadian dollar price going up on commodities
The Canadian dollar continues to strengthen against the U.S. dollar as commodity prices going up helped Canada's exports increase to their strongest level in about a year.
Against 13 of the 16 most traded currencies, the Canadian dollar price went up as a number of commodities like natural gas, crude oil and copper continue to go up in price.
Oil may be the best driver of the loonie, as it continues to rise in price in the midst of the cold spell hitting the world.
Crude oil for February delivery increased in price by 4.3 percent this week to $82.75 a barrel on the New York Mercantile Exchange. It went as high as $83.52, the top level since October 2008. Crude is Canada’s largest export.
Copper for March delivery topped at $3.544 a pound on Jan. 7, the largest price since August 2008.
Natural gas for February delivery soared to a one-year intraday high, $6.108 per million British thermal units.
About half of all export revenue from Canada comes from raw materials, making the long-term prospects of the Canadian dollar somewhat bullish.
Commodity currencies should do well over the next several years unless an unforeseen situation arises.
Canadian dollar price going up on commodities
Friday, September 26, 2008
Commodity Prices Holding Back Canadian Dollar
The Canadian dollar has enjoyed a 4 percent gain against the greenback over the last couple weeks as U.S. financial conditions continue to falter.
Even so, the resultant decline in commodity prices has kept the loonie from making any more gains over the last couple days as it has remained flat against the U.S. dollar.
With politicians battling over the proposed bailout, pressure on the U.S. dollar will remain until it's resolved and the final package revealed.
With over half of all Canadian exports being commodities, things will remain flat until the decision is made concerning the possible bailout and the specifics of it.
The Canadian dollar seems to have settled at around C$1.03 to the U.S. dollar during this period of time.
Even so, the resultant decline in commodity prices has kept the loonie from making any more gains over the last couple days as it has remained flat against the U.S. dollar.
With politicians battling over the proposed bailout, pressure on the U.S. dollar will remain until it's resolved and the final package revealed.
With over half of all Canadian exports being commodities, things will remain flat until the decision is made concerning the possible bailout and the specifics of it.
The Canadian dollar seems to have settled at around C$1.03 to the U.S. dollar during this period of time.
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-cad-small.gif)
Monday, April 14, 2008
Canadian Dollar Rebounds
The Canadian dollar has been down for a couple of weeks, but rebounded strong today as exports increased and the stock index surged. The loonie gained against 14 of the 16 major currencies today, as gold and oil prices posted gains.
Jeff Rubin, chief economist at CIBC World Markets said the Canadian dollar should increase in strength against the U.S. dollar, probably rising to 95.2 cents per U.S. dollar this year.
He added concerning the U.S. economic downturn that "The energy- and resource-rich Canadian economy will manage to sit out this U.S. recession."
As he said, all this is related to the increasing and long-term demand for commodities, which should keep Canada's economy strong for the next couple decades at least.
Jeff Rubin, chief economist at CIBC World Markets said the Canadian dollar should increase in strength against the U.S. dollar, probably rising to 95.2 cents per U.S. dollar this year.
He added concerning the U.S. economic downturn that "The energy- and resource-rich Canadian economy will manage to sit out this U.S. recession."
As he said, all this is related to the increasing and long-term demand for commodities, which should keep Canada's economy strong for the next couple decades at least.
Friday, March 28, 2008
Commodity News around the Web
Weekend commodity news roundup
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Markets drop with oil on broad quarter-end selloff
Commodities ended broadly lower on Friday, extending losses from the previous session, after a drop in oil prices and profit-taking by funds preparing to close first quarter trade.
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Brazil's Real Falls on Commodities Drop, Concern Over Surplus
Brazil's real weakened for a second day on concern declining commodity prices and a narrowing trade surplus will lessen demand for the currency.
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Canada dollar sags on commodities, bonds mixed
The Canadian dollar ended lower against the U.S. dollar on Friday as commodity prices fell and worries persisted about the health of the U.S. economy and the potential for spillover effects on Canada.
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NYSE buys $55m interest in India exchange
NYSE Euronext Inc., the American-European corporation that operates numerous securities exchanges worldwide, has signed an agreement to purchase a 5-percent interest in the independent Multi Commodity Exchange of India Ltd. for $55 million.
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Sempra Energy ratings not affected by final approval for commodities jv - S&P
Standard & Poor's Ratings Services said its ratings and outlook on Sempra Energy (NYSE:SRE) are not affected, after the company received final regulatory approval to form the commodities-marketing joint venture, RBS Sempra Commodities.
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Commodities Bubble Burst? Big Clue Comes Monday
Investors wondering whether the agricultural commodities bubble has burst will get some important clues in Monday's annual crop plantings report, considered a bellwether for the direction of farming activity for the year.
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How Expensive is the Food for Food?
I want to share my opinion in answer to a few questions I've received about the increased margin requirements imposed by the Chicago Mercantile Exchange (CME) for crops of agriculture futures.
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Markets drop with oil on broad quarter-end selloff
Commodities ended broadly lower on Friday, extending losses from the previous session, after a drop in oil prices and profit-taking by funds preparing to close first quarter trade.
=====
Brazil's Real Falls on Commodities Drop, Concern Over Surplus
Brazil's real weakened for a second day on concern declining commodity prices and a narrowing trade surplus will lessen demand for the currency.
=====
Canada dollar sags on commodities, bonds mixed
The Canadian dollar ended lower against the U.S. dollar on Friday as commodity prices fell and worries persisted about the health of the U.S. economy and the potential for spillover effects on Canada.
=====
NYSE buys $55m interest in India exchange
NYSE Euronext Inc., the American-European corporation that operates numerous securities exchanges worldwide, has signed an agreement to purchase a 5-percent interest in the independent Multi Commodity Exchange of India Ltd. for $55 million.
=====
Sempra Energy ratings not affected by final approval for commodities jv - S&P
Standard & Poor's Ratings Services said its ratings and outlook on Sempra Energy (NYSE:SRE) are not affected, after the company received final regulatory approval to form the commodities-marketing joint venture, RBS Sempra Commodities.
=====
Commodities Bubble Burst? Big Clue Comes Monday
Investors wondering whether the agricultural commodities bubble has burst will get some important clues in Monday's annual crop plantings report, considered a bellwether for the direction of farming activity for the year.
=====
How Expensive is the Food for Food?
I want to share my opinion in answer to a few questions I've received about the increased margin requirements imposed by the Chicago Mercantile Exchange (CME) for crops of agriculture futures.
=====
Wednesday, March 12, 2008
Commodities Continue to Surge: Oil Hits $110 for First Time
Commodity News Around the Web
Gas Prices Jump, Oil Hits $110
Gasoline and oil prices extended their record-setting streaks Wednesday, with gas at the pump reaching a new high of nearly $3.25 and crude surpassing $110 for the first time.
The gains came as a weakening dollar led investors to shrug off an Energy Department report that crude oil and gasoline supplies jumped last week.
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Dollar Falls to Record Low Against Euro
Euro Tops $1.55 for the First Time With Broad Skepticism About Fed Plan to Support Markets
The dollar fell against most major currencies on Wednesday, including a new low against the euro, which fetched $1.55, as skepticism grew over the latest U.S. Federal Reserve Bank plan to restore calm to jittery global credit markets.
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New S&P Currency Indexes Cover Renminbi And Rupee
Standard & Poor's has two currency indexes linked to two of the world's hottest emerging markets. The S&P Chinese Renminbi Index and the S&P Indian Rupee Index are the first members of a full family of similar indexes that S&P is launching; the S&P Currency Beta Series will include indexes both for individual currencies and groups of currencies. They were created for use as hedging and measurement tools.
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U.S. dollar sinks as Jordan says sell
The U.S. dollar has hit yet another record low against the Euro, after Jordanian central bank officials talked of reducing U.S. dollar reserves and figures showed Japan's economy is performing better than expected.
The Euro was buying US$1.5540 at 3:30 PM ET Friday, the strongest rate ever against the greenback since the Euro debuted in 1999. The U.S. dollar index, which measures the greenback's strength against a basket of major currencies, also slipped to a record low of 72.47. The Canadian dollar was slightly higher than yesterday's close at US$1.01.
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COMMODITIES-Rally plows ahead as oil crosses $110; wheat up
The powerful bull run in key commodities showed little fatigue on Wednesday as oil closed up after hitting a record above $110 per barrel and wheat settled higher after rallying for a second straight day.
Metals also ended in the positive, with copper [COP/X] rising more than 1 percent after losses in two earlier sessions, and gold [GOL/X] repeating Tuesday's modest gains.
Sugar [SUG/N] and cocoa [COC/N] closed down, along with corn and soybeans. But cotton [COT/N] showed surprising resilience, closing up after hitting limit-down.
Leading commodity indexes such as the Reuters-Jefferies CRB .CRB, the S&P GSCI .SPGSCI and the Dow Jones-AIG .DJAIG ended higher too.
=====
Gas Prices Jump, Oil Hits $110
Gasoline and oil prices extended their record-setting streaks Wednesday, with gas at the pump reaching a new high of nearly $3.25 and crude surpassing $110 for the first time.
The gains came as a weakening dollar led investors to shrug off an Energy Department report that crude oil and gasoline supplies jumped last week.
=====
Dollar Falls to Record Low Against Euro
Euro Tops $1.55 for the First Time With Broad Skepticism About Fed Plan to Support Markets
The dollar fell against most major currencies on Wednesday, including a new low against the euro, which fetched $1.55, as skepticism grew over the latest U.S. Federal Reserve Bank plan to restore calm to jittery global credit markets.
=====
New S&P Currency Indexes Cover Renminbi And Rupee
Standard & Poor's has two currency indexes linked to two of the world's hottest emerging markets. The S&P Chinese Renminbi Index and the S&P Indian Rupee Index are the first members of a full family of similar indexes that S&P is launching; the S&P Currency Beta Series will include indexes both for individual currencies and groups of currencies. They were created for use as hedging and measurement tools.
=====
U.S. dollar sinks as Jordan says sell
The U.S. dollar has hit yet another record low against the Euro, after Jordanian central bank officials talked of reducing U.S. dollar reserves and figures showed Japan's economy is performing better than expected.
The Euro was buying US$1.5540 at 3:30 PM ET Friday, the strongest rate ever against the greenback since the Euro debuted in 1999. The U.S. dollar index, which measures the greenback's strength against a basket of major currencies, also slipped to a record low of 72.47. The Canadian dollar was slightly higher than yesterday's close at US$1.01.
=====
COMMODITIES-Rally plows ahead as oil crosses $110; wheat up
The powerful bull run in key commodities showed little fatigue on Wednesday as oil closed up after hitting a record above $110 per barrel and wheat settled higher after rallying for a second straight day.
Metals also ended in the positive, with copper [COP/X] rising more than 1 percent after losses in two earlier sessions, and gold [GOL/X] repeating Tuesday's modest gains.
Sugar [SUG/N] and cocoa [COC/N] closed down, along with corn and soybeans. But cotton [COT/N] showed surprising resilience, closing up after hitting limit-down.
Leading commodity indexes such as the Reuters-Jefferies CRB .CRB, the S&P GSCI .SPGSCI and the Dow Jones-AIG .DJAIG ended higher too.
=====
Tuesday, March 4, 2008
U.S. Dollar Continues to Plunge Against Japanese, European and Canadian Currencies
The U.S. dollar continues to fall against major currencies, as it is flirting with its all-time low against the euro. For the euro, the dollar was only able to buy $1.5208. For the British pound, it increased a little to $1.9859, up from $1.9847.
In late trading in New York, it also fell against the Canadian dollar, going to 1.0042, down from Monday's 1.0074 cents.
The Japanese yen also increased against the U.S. dollar, climbing to 103.14, up from 103.96. Japan's leadership is getting more concerned about the weakening dollar, as it has fallen by over 7 percent in 2008 already. They're concerned that their exports could suffer if it continues at this "abnormally rapid" rate.
This of course isn't bad news for all businesses in the U.S., as manufacturing will benefit from the weakened dollar, as well as tourist-related businesses that attract a lot of international visitors. The question there is if the weakening domestic tourist market will be made up for by foreign tourists. That has yet to be answered.
As far as the Canadian dollar, the Canadian bank cut borrowing rates by a half point; the first time since November 2001. They've indicated more cuts may be on the way in April.
For the Australian dollar, things are going the other way, as they continue to battle inflationary pressures, and continue to raise their interest rates, today increasing it by a quarter point, which now stands at 7.25 percent.
In late trading in New York, it also fell against the Canadian dollar, going to 1.0042, down from Monday's 1.0074 cents.
The Japanese yen also increased against the U.S. dollar, climbing to 103.14, up from 103.96. Japan's leadership is getting more concerned about the weakening dollar, as it has fallen by over 7 percent in 2008 already. They're concerned that their exports could suffer if it continues at this "abnormally rapid" rate.
This of course isn't bad news for all businesses in the U.S., as manufacturing will benefit from the weakened dollar, as well as tourist-related businesses that attract a lot of international visitors. The question there is if the weakening domestic tourist market will be made up for by foreign tourists. That has yet to be answered.
As far as the Canadian dollar, the Canadian bank cut borrowing rates by a half point; the first time since November 2001. They've indicated more cuts may be on the way in April.
For the Australian dollar, things are going the other way, as they continue to battle inflationary pressures, and continue to raise their interest rates, today increasing it by a quarter point, which now stands at 7.25 percent.
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