20 ordspråk av Jack Spitz
Jack Spitz
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The news was all, on balance, positive for the Canadian dollar.
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Liquidity may be an issue later today.
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There's support for the Canadian dollar because fundamentally the numbers that were released this morning were still not bad enough to continue to see the Canadian dollar weaken.
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The number underscores economic strength in the country. Bank of Canada may continue its hawkish stance. This is supportive to the Canadian dollar.
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There's been corporate support for dollar/Canada all the way down here. Model funds, momentum types, technical traders are still looking at buying the Canadian dollar even above 88 cents.
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The U.S. dollar is under pressure today, which is dominating price action throughout the North American session.
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The domestic payroll numbers were extraordinary, well ahead of expectations, and very supportive of the currency going forward.
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Price action is still (pushing the U.S. dollar lower against Canada) given the price of commodities and energy, which are both supportive of the Canadian dollar going forward.
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Model names and momentum accounts are looking at buying Canada and (International Money Market futures) names are on it already.
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The Canadian dollar appears to be the North American play, and the proxy for all things that are good in a North American economy with a commodity add-on.
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U.S. markets are closed for Martin Luther King Day so price action is expected to remain muted throughout the North American session.
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The upcoming election on Jan. 23 isn't likely to have a negative impact on the Canadian dollar. Nor should it.
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I do see the Bank of Canada looking to raise rates, and the converging yield curve between Canada and the United States will continue to underpin the Canadian dollar.
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I see a test, and a successful one at that, through the 14-year high.
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After the payroll data was released, it was more or less U.S. dollar buying across the board, but Canada's reaction was muted when compared with other currencies.
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