Canadas dollar sinking
miller8966
Posts: 1,450
Canada's Dollar Touches Nine-Month Low as Crude Oil Declines
By Haris Anwar
Jan. 3 (Bloomberg) -- Canada's dollar touched a nine-month low as crude oil prices tumbled and traders predicted the currency's decline will extend into the new year.
The currency tends to follow the price of commodities, which account for about 54 percent of Canada's exports. Crude oil, which peaked in July, declined today as mild weather in most of the U.S. reduced heating-fuel consumption.
``The commodity price picture is unlikely to be supportive for the currency going forward,'' said Marc Levesque, chief North American strategist at TD Securities Canada Inc. in Toronto.
The Canadian currency dropped 0.4 percent to 85.46 U.S. cents at 11:39 a.m. in Toronto from 85.80 U.S. cents yesterday. One U.S. dollar buys C$1.17. The Canadian currency touched 85.39 U.S. cents, the lowest since April 4.
The Canadian dollar last year saw its first annual decline in five years as the economy slowed and crude oil ended a four- year rally. The currency has dropped 6.6 percent from 91.44 U.S. cents on May 31, which was the highest since 1978.
Crude oil for February delivery fell $1.95, or 3.2 percent, to $59.10 a barrel on the New York Mercantile Exchange. Futures touched $58.92, the lowest since Nov. 24. Oil is down 6.2 percent from a year ago.
The net short positions in the Canadian currency reached a record high of 66,000 last week, according to data compiled by the Washington-based Commodity Futures Trading Commission. Some traders speculate a slowdown in the U.S., which receives 80 percent of Canada's exports, will hurt the Canadian currency.
The Canadian dollar was one of 15 major currencies to fall against the U.S. dollar, which got a boost from a private report that showed U.S. manufacturing unexpectedly expanded in December. Canada ships 80 percent of its exports to the U.S.
U.S. Manufacturing Boost
The Institute for Supply Management's U.S. manufacturing index for December rose to 51.4 from 49.5 in November. A reading above 50 signals an expansion. The median forecast in a Bloomberg survey of 63 economists was for a reading of 50.
Sales of previously owned U.S. homes unexpectedly rose 0.6 percent in November after increasing 0.5 percent the previous month, the National Association of Realtors reported Dec. 28.
Canada's economy, the world's eighth-largest, failed to grow in back-to-back months in October and September for the first time since March and April of 2003. The gross domestic product was unchanged in October after contracting 0.4 percent the previous month, Statistics Canada reported Dec. 21.
``Following a string of soft Canadian economic numbers and some signs the U.S. housing market could be stabilizing, speculation that the Bank of Canada might be more aggressive than the Federal Reserve in any rate-cutting campaign appears to be growing,'' said Camilla Sutton, a currency strategist at Scotia Capital Inc. in Toronto.
Outlook on Rates
The Canadian central bank will cut its benchmark lending rate to 4 percent by the end of 2007, according to the median estimate of 12 economists surveyed by Bloomberg News on Dec. 28. The Bank of Canada raised its benchmark rate to 4.25 percent in May, and has kept it steady since.
The Federal Reserve has kept its target overnight lending rate between banks unchanged at 5.25 percent at their past four meetings, following 17 consecutive rate increases.
``Markets are punishing currencies which have central banks firmly in the dovish camp, and certainly the Canadian dollar falls into that camp,'' said David Mozina, a senior currency strategist at Lehman Brothers Holdings Inc. in New York.
The yield on Canada's benchmark 10-year note was little changed at 4.06 percent. The price of the 4 percent security maturing in June 2016 was C$99.54. Prices rise as yields decline.
By Haris Anwar
Jan. 3 (Bloomberg) -- Canada's dollar touched a nine-month low as crude oil prices tumbled and traders predicted the currency's decline will extend into the new year.
The currency tends to follow the price of commodities, which account for about 54 percent of Canada's exports. Crude oil, which peaked in July, declined today as mild weather in most of the U.S. reduced heating-fuel consumption.
``The commodity price picture is unlikely to be supportive for the currency going forward,'' said Marc Levesque, chief North American strategist at TD Securities Canada Inc. in Toronto.
The Canadian currency dropped 0.4 percent to 85.46 U.S. cents at 11:39 a.m. in Toronto from 85.80 U.S. cents yesterday. One U.S. dollar buys C$1.17. The Canadian currency touched 85.39 U.S. cents, the lowest since April 4.
The Canadian dollar last year saw its first annual decline in five years as the economy slowed and crude oil ended a four- year rally. The currency has dropped 6.6 percent from 91.44 U.S. cents on May 31, which was the highest since 1978.
Crude oil for February delivery fell $1.95, or 3.2 percent, to $59.10 a barrel on the New York Mercantile Exchange. Futures touched $58.92, the lowest since Nov. 24. Oil is down 6.2 percent from a year ago.
The net short positions in the Canadian currency reached a record high of 66,000 last week, according to data compiled by the Washington-based Commodity Futures Trading Commission. Some traders speculate a slowdown in the U.S., which receives 80 percent of Canada's exports, will hurt the Canadian currency.
The Canadian dollar was one of 15 major currencies to fall against the U.S. dollar, which got a boost from a private report that showed U.S. manufacturing unexpectedly expanded in December. Canada ships 80 percent of its exports to the U.S.
U.S. Manufacturing Boost
The Institute for Supply Management's U.S. manufacturing index for December rose to 51.4 from 49.5 in November. A reading above 50 signals an expansion. The median forecast in a Bloomberg survey of 63 economists was for a reading of 50.
Sales of previously owned U.S. homes unexpectedly rose 0.6 percent in November after increasing 0.5 percent the previous month, the National Association of Realtors reported Dec. 28.
Canada's economy, the world's eighth-largest, failed to grow in back-to-back months in October and September for the first time since March and April of 2003. The gross domestic product was unchanged in October after contracting 0.4 percent the previous month, Statistics Canada reported Dec. 21.
``Following a string of soft Canadian economic numbers and some signs the U.S. housing market could be stabilizing, speculation that the Bank of Canada might be more aggressive than the Federal Reserve in any rate-cutting campaign appears to be growing,'' said Camilla Sutton, a currency strategist at Scotia Capital Inc. in Toronto.
Outlook on Rates
The Canadian central bank will cut its benchmark lending rate to 4 percent by the end of 2007, according to the median estimate of 12 economists surveyed by Bloomberg News on Dec. 28. The Bank of Canada raised its benchmark rate to 4.25 percent in May, and has kept it steady since.
The Federal Reserve has kept its target overnight lending rate between banks unchanged at 5.25 percent at their past four meetings, following 17 consecutive rate increases.
``Markets are punishing currencies which have central banks firmly in the dovish camp, and certainly the Canadian dollar falls into that camp,'' said David Mozina, a senior currency strategist at Lehman Brothers Holdings Inc. in New York.
The yield on Canada's benchmark 10-year note was little changed at 4.06 percent. The price of the 4 percent security maturing in June 2016 was C$99.54. Prices rise as yields decline.
America...the greatest Country in the world.
Post edited by Unknown User on
0
Comments
Gosh I wonder why you wanted to post this man?
when it hits you, you feel to pain.
So brutalize me with music.”
~ Bob Marley
We own you..
Gotta love Pam Anderson though.
-Enoch Powell
Nope.......
what sort of deap-seated insecurity do you have that causes you to spew this sort of dough-headed bullshit constantly?
this isn't fucking nascar.
do you have a point?
Nascar?
So just because im republican and love my country means that i watch shitty nascar?
LOL
And they say it is we Canucks that are insecure :rolleyes: Get over it already!!
Canada. It IS better on top!!!
I am just curious. Does loving your country mean that you have to hate other countries? I don't get that. I love my country but I don't hate other countries. eh, maybe it is just something in the water
Whatever floats your boat
Its a funny thing with you bacon eaters.
You can criticize us all day, but god forbid we say anything about you
I don't remember criticizing you??
still no point, huh?
I don't give a shit if you are a republican. There are plenty of well spoken republicans. I'd be embarrassed to be in your company if I were GOP. I take issue with the garbage you spew.
"we own you"
what does that even mean? you have no point beyond useless rhetoric.
you're so over the top that I almost think you're a shits & giggles alter ego of someone more left of centre. You can't be this much of a meathead naturally.
I love the bacon.
Says the guy from the country with no fresh water or oil reserves. Just keep buying our shit and shut the fuck up.
here here, stick it to those thirsty, SUV driving knuckle-draggers
cut off the oil sands
2003 ~ Toronto
2005 ~ London, Toronto
2006 ~ Toronto
2008 ~ Hartford, Mansfied I,
2009 ~ Toronto, Chicago I, Chicago II
2010 ~ Cleveland, Buffalo
2011 ~ Toronto I, Toronto II, Ottawa, Hamilton
2013 - London, Pittsburgh, Buffalo
One of my friends from Detroit travels as a 'Canadian' overseas. This is why.
Screw that.
"Canadia is the proper spelling for a country where the people call themselves "Canadians". If the country's name was spelled "Canada," then the people there would call themselves "Canadans." Since they call themselves "Canadians", it's only reasonable to spell the name of their country "Canadia." After all, people from Germany don't call themselves "Germanians" do they?
In fact, chances are that you found this web page because you typed "Canadia" into a search engine. Subconsciously you already believe that the country to the north of the United States should be called Canadia. Thank you for seeing things our way.
For those of you who went to public school in the U.S. and haven't heard of Canadia before, it's a small, third-world country just north of the United States. Once you learn to understand their peculiar dialect of English, it's not too hard to converse with Canadian natives.
Canadia is a poor and sparsely-populated country where up to 98% of the citizens are alcoholics. Most Canadian citizens have government jobs where they are paid to say "Eh?" all day long."
Miller no offense but you sound foolish right now. Rambling on about how the Canadian dollar is loosing value when our own dollar has been steadily declining in value over the past several years is well stupid. We now have many central bank converting their assests to the Euro. Oil producing countries are deciding wether to change their Oil index from the US dollar to the Euro. It's pretty ridiculous to sit there and ridicule a country because their currency is loosing value when our own currency has been following the same trend for years.
c'mon ... just let him keep posting ... it serves a greater purpose!
naděje umírá poslední
I'll take these two Alex...............
The public school comment does wonders for the people on this board. You and some of them live right up to this quote. Nice system!
The alcoholic thing?? At least we can handle our booze. Dosen't say much for the pussy yanks in the military who blamed a rape on the superior alcohol content of the Cdn beer they decided to mess with and couldn't handle. What is that song. We can't own up, so blame it on Canada.
The many reasons people hate Americans......I try to avoid generalizations and understand this case is an obvous example of someone with way too much time on his hands that feels that this will upset us Canadians....in fact the utter stupidity of it makes it funny to me....ain't laughing with you we are laughing at you.....
Rockin'
Too bad you are taken, because you are the BEST.
Thanks...your the best as well!
Your an Oiler fan that makes you a #1 in my books thats for sure......
There is a good bunch of us Oiler fans here. If I ever get out to Edmonton a few of us are going to take in a game, you must come
Back on track though(someone must have shown me some bacon or moose humping and I got all off track :rolleyes: ) I really agreed with what you said and you managed to say PFO in a nice, diplomatic manner
That is a super great idea.....beers/PJ talk/OILERS!....
As for the moose humping WTF is the deal with that...is that really supposed to get laid back Canadians upset at themselves....to generalize, although I try to avoid it, the majority of Canadians have no problems laughing at themselves and are pretty relaxed.......enough to brush aside absurd comments......
http://www.myspace.com/brain_of_c
It is a DATE
Moose humping, eh? Someone once said that to me(not so nicely) and I was like first off have you SEEN a moose???? :eek: I don't think SO and second I live on PEI, not so many moose or should I say meese
Now out in Alberta with all those redneck cowboys I can't say for sure what THEY do
j/k