Canadian Dollar Down as Oil Declines

The Canadian dollar had a second day of negative performance as unemployment in the nation is expected to grow further, damping demand for the loonie.
After several days breaking records versus its U.S. counterpart, the perfect scenario for a reversal in the Canadian dollar trend occurred today, as stocks and commodities fell, influencing negatively the loonie’s performance. Reports due tomorrow are likely to indicated improved employed conditions in the U.S., speculations which helped the greenback to pare some of its latest losses versus the loonie.
USD/CAD traded at 1.0770 as of 22:41 GMT from yesterday’s rate of 1.0700.

Brazilian Real Falls on Commodities Decline

Brazil’s real, the best performing among the 16 most traded currencies had the most significant fall in more than a month as commodities declined today, pushing investors away from the South American currency.
A number of important Brazilian exports had a decline in their prices today as U.S. services industries contracted, forcing virtually all commodities down today. Brazil is one of the biggest global supplies for grain and metallic commodities, and today’s decline brought the real to the first negative performance in a week.
USD/BRL traded at 1.8255 as of 22:21 GMT from an opening price of 1.8141.

Pound Continues Rally Versus Euro and Dollar

The pound is gaining again versus the euro and the dollar as services industry grew and U.K manufacturing jump beyond expectations in July, pushing the pound to the highest level in 9 months.
The pound sterling may be climbing its way to pre-crisis levels as positive news for the British economy appeared this week after months of consecutive shrinking numbers and political crisis in the British Isles. Today the pound is trading at the highest level in 9 months versus the greenback and the highest in one month versus the euro, fueled by British reports this week that indicated an increase in U.K. manufacturing and services industry figures, helping the pound to widen the gap versus the euro and rebound versus most of the 16 most traded currencies, losing only to extremely high-yielding options, like the Brazilian real.
Analysts affirm that the economic recovery in the U.K. is proving to be happening faster than in other parts of the Europe, which is boosting demand for the pound, and raising attractiveness for equities markets in London. If positive news continue to come in the U.K. it is likely that a rebound pattern will be set for the pound, which is likely to gain mostly versus the greenback and yen, considered refuge currencies and unattractive for the current economic scenario.
GBP/USD traded at 1.7016 as of 11:11 GMT from 1.6953 in the intraday comparison, being the current, the highest rate since last December.

Finance Minister Halts Canadian Dollar Rally

The Canadian dollar, which has gaining heavily versus several most traded currencies, finally stopped its rally after the national Finance Minister affirmed that eventual measures may be taken to damp the rising demand for the loonie, which is already jeopardizing Canadian exports.
The Canadian currency was one of the best performing ones since the world started to post more solid signs of economic recovery last month, creating a bullish pattern for high-yielding currencies fueled by a new wave of risk appetite. The current rise of the loonie, may already affect Canadian exporters negatively, since the national currency rose intensively, more than its Australian and New Zealand counterparts for example. Yesterday, Canadian Finance Minister Jim Flaherty stated that the rapid rise of the national currency is already a reason of concern, and measures may be taken to halt its continuation, affecting immediately the Canadian dollar, which dropped from a 10-month high level.
Analysts examine the loonie’s short term situation as an obstacle for Canada to grow, since a high loonie will affect Canadian’s exports and consequently different sectors of the economy. The Bank of Canada may indeed intervene in the currency market, being Flaherty’s declaration already an effective psychological measure that pushed the dollar down for the first time in a almost a week.
USD/CAD traded at 1.0763 as of 10:21 GMT from yesterday’s rate of 1.0681.

Yen Rebounds on Stocks Correction Movement

After gaining sharply for three days in a row, today stocks declined around the world, fueling demand and opening a profit opportunity with the currently weakened Japanese currency, which is witnessing its first significant climb in a week.
Today, Bayerische Motoren Werke AG, commonly known to the public as the BMW vehicle manufacturer, posted a 76 percent decline in its profits, causing European stock markets to open in the negative, consequently attracting stock traders to safer positions like those available in refuge currencies, benefiting the yen. In Europe, a report is likely to indicate that producer prices declined at a strong pace, damping demand for the European common currency. Emergent-market currencies like the South African rand, and Commodity-linked currencies like the Australian dollar, posted the sharpest losses versus the yen, as these currencies tend to have a higher volatility due to their riskier profile.
Analysts indicate today’s movement as a correction, and also a pause in the current rally that higher-yielding currencies are imposing versus the yen. A number of traders are selling their positions in emergent-markets to take profits from last week’s rally, but it does not mean that the yen is starting a recovering pattern, the outlook for the Japanese currency still remains very negative.
GBP/JPY traded at 160.29 as of 9:53 after topping at 162.17 hours earlier. EUR/JPY traded at 136.11 from 137.69.

Canadian Dollar Climbs Fueled By Stocks Rally

The Canadian dollar reached a 10-month high versus its U.S. counterpart as corporate earnings, mainly in North America, but also in Asia and Europe, posted better-than-expected numbers, pushing investors to the already attractive Canadian currency.
The crude oil price rally during the past weeks has been favoring the Canadian dollar massively, since one of the main national exports to the U.S. is the oil, which experiences an increase on its price as demand for energy tends to grow in a recovering economy. Corporate earnings this week in the U.S. and Asia helped high-yielding currencies to gain even further, as the greenback and the yen tumbled to the lowest levels in more than a year. Manufacturing in China figures published yesterday, indicated the highest climb in a year, suggesting that the Asian nation is also being helped by global signs of economic recovery, as a higher demand influences its industrial production.
Analysts state that equities market gains have still a reasonable range to continue, and that the Canadian dollar is very likely to follow these movements. The crude oil may also help the Canadian dollar to climb, and it is not impossible that the loonie will be traded one-to-one versus its U.S. counterpart before the end of the year.
USD/CAD traded at 1.0697 as of 9:13 GMT from a previous rate yesterday of 1.0780.

Euro Climbs on U.S. Data Speculations

The euro has been trading near a two-month high versus the dollar during most of the past week, and may climb to higher levels today on a U.S. manufacturing report that is likely to show the highest production in a twelve-month period, raising risk appetite among investors and affecting the greenback negatively.
The dollar is losing constantly versus the Eurozone currency since the global economy has been posting more solid signs of recovery, three weeks ago, which is helping the euro outlook to climb as its riskier profile, compared to the dollar, is luring investors back to European equities markets, consequently pushing the bloc’s currency up. The euro also climbed versus the yen, as former Federal Reserve Governor Alan Greenspan stated that the economic recovery may come earlier than expected, which affected negatively the yen, being the latter a refuge currency for stormy financial markets periods.
According to analysts, the euro is climbing mostly versus refuge currencies, but against other higher-yielding options, it continues rather stable. A very strong euro is not seen positively in Europe, as the region exports are affected in competitiveness by a stronger currency, nevertheless, the euro is liked to continue its rally versus the greenback and the yen.
EUR/USD traded at 1.4285 as of 11:08 GMT from an equal opening rate around the 1.4300 level. EUR/JPY traded at 135.63 from 135.19.