The Bank of Canada left rates unchanged at 0.25% as expected but again commented that repeated CAD strength would act as a “significant further drag on growth. The BOC also revised lower its 2009 and 2010 growth forecasts, but upped its prediction for 2011, and added that rates are expected to be held at 0.25% at least until the end of H1 2010. Net/net seen as a slight negative and helped the USD/CAD rebound.
Economy and Forex Market Major Headlines - Previous Session
- Canada Dec. leading Indicators out at +1.5% m/m vs. +1.0% expected and +1.3% prior
- Canada Bank of Canada leaves interest rates unchanged at 0.25%
- USA Jan. NAHB Housing Index out at 15 vs. 17 expected and 16 prior
- NZ Q4 Consumer Prices out at -0.2% q/q, +2.0% y/y vs. flat/+2.1% expected and 1.3%/1.7% prior resp.
- USA Weekly ABC Consumer Confidence out at -49 vs. -44 expected and -47 prior
- AU Jan. Westpac Consumer Confidence out at 5.6% vs. -3.8% prior
- Japan Nov. Tertiary Industry Index out at -0.2% m/m, as expected, vs. revised +0.4% prior
- AU Jan. DEWR Skilled Vacancies out at +1.1% m/m vs. revised +1.6% prior
- Japan Dec. Final Machine Tool Orders out at 63.4% y/y vs. +62.8% previously
Commodity-bloc currencies also moved lower in tandem with AUD slipping some 1.2% against the greenback. CAD was also in retreat, pressured further by data which showed the trade balance slipping back into deficit in November after a small C$0.5 billion surplus in October. GBP was one of the rare over-performers against the dollar overnight.
Major Economics and Forex Market Headlines - Previous Session
- USA Dec. NFIB Small Business Optimism out at 88.0 vs. 88.3 prior
- Canada Nov. Int’l Merchandise Trade out at –C$0.3 billion vs. +C$0.5 billion expected and revised +C$0.5 billion prior
- Canada Nov. New Housing Price Index out at +0.4% m/m vs. +0.3% expected and +0.3% prior
- USA Nov. Trade Balance out at -$36.4 billion vs. -$34.6 billion expected and revised -$33.2 bln prior
- USA Jan. IBD/TIPP Economic Optimism out at 48.8 vs. 48.5 expected and 46.8 prior
- USA Weekly ABC Consumer Confidence out at -47 vs. -41 prior
- NZ Dec. ANZ Commodity Price out at +2.6% vs. +10.5% prior
- Japan Dec. Bankruptcies out at -16.6% y/y vs. -11.4% prior
- Japan Dec. Machine Tool Orders out at +62.8% y/y vs. -8.4% prior
Pound Sterling rises as the dollar drips on negative payrolls and continuing low interest rates. GBP/USD – Market strategy is bullish, buying from the 1.6115$ level.
The US Dollar was steady against major currencies on Monday in the absence of market-moving economic data. The Euro held between
US$1.4480 and US$1.4560, hovering near US$1.4520 in late US trade. The Aussie dollar held between US92.80c and US93.30c,
trading near US93.06c late in the US session. Japanese yen traded between 92.65 yen per US dollar and JPY91.80, hovering near JPY92.00 late in the US session.
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Currency Converter
Central Banks Interest Rates
| US | 0.25% |
| UK | 0.5% |
| EMU / EURO | 1% |
| Japan | 0.1% |
| Switzerland | 0.25% |
| Canada | 0.25% |
| Australia | 3% |
| New Zealand | 2.5% |
| Sweden | 0.25% |
