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Canadian Dollar Resumes Drive toward Parity

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Apr 4, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The USD CAD accelerated to the downside on Thursday, after breaking through a minor support price at 1.0152. Greater demand for riskier commodities such as gold and crude oil helped to pressure this pair lower. Recent government data suggests the economy is growing, putting the currency on track to reach parity with the U.S. Dollar. Speculators are also factoring in the strong possibility the Bank of Canada will raise interest rates before the Fed. Foreign traders are also finding the Canadian Dollar to be an attractive investment because of the country’s abundance of natural resources and the strength of its banking system.

    The U.S. Dollar traded lower against most major currencies as traders took advantage of thin market conditions ahead of tomorrow’s key U.S. Non-Farm Payrolls Report. Early in the session the Dollar rose slightly following a decline in U.S. Weekly Initial Claims before being overcome by aggressive buying of higher yielding assets. Signs that the global economy may be recovering faster than previously thought helped to pressure the Dollar led by strong rallies in the British Pound and Canadian Dollar.

    Some traders are discounting the rallies this week because of the U.S. Non-Farm Payroll Report on Friday. They feel that the lack of major players in the market helped contribute to the Dollar’s weakness. Early guesses are for the employment report to show an increase of between 200,000 and 300,000 jobs. Most of which is being attributed to government census hiring. This week’s ADP private employment report showed a surprise decrease of 24,000 jobs versus a guess of +40,000. Economists are saying that there is no correlation between the two reports.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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