Philip Chua Business Blog

Posts Tagged ‘canadian dollar’

The dollar had an excellent week, its best since January. The US currency rose 2% or more against every major currency except the Canadian Dollar; against the loonie it gained only 1.8%. Several factors sent the dollar soaring: end of the year profit taking and position squaring; sovereign debt concerns…

The DXY does not mirror the United States trade position in the global economy. It is heavily weighted to Europe, undervalues the Canadian Dollar, ignores South Korea Taiwan and by necessity China. A firm cannot settle a trade flow in the DXY nor is it particularly useful as a hedge…

Is the long consolidation of the dollar over? The decline of the greenback against major currencies and the Australian dollar/Canadian dollar in particular might be the beginning of a new leg down that could last until December. The decision of the Royal Bank of Australia to increase interest rates will…

Sterling has been one of the weakest currencies this week, with only the Canadian dollar underperforming in the G-10 currency space. GBP/USD has closed the week at 1.5992, recording a fall of 1.7%. The depreciation in the pound has been broad based with GBP/ EUR also falling 1.7%, to close…

Plenty of FX volatility: Canadian dollar, Mexican peso and Sterling the weakest, South Korean won, Kiwi and Norway the strongest. As well as banking jitters, comments from the Bank of England’s Mervyn King that sterling weakness would help to rebalance the economy away from (nasty) financial services and help exports…

Speculative investors have increased their bets that the Canadian dollar will continue its rally. Net long positions were expanded by USD1.2bn, implying that speculative net long positions now stand at 32% of total open interest – the highest since June last year. This indicates to us, however, that positioning has…