Tuesday, July 10, 2007

Peeking at The Loonie

Taking a closer look at Canadian Dollar Futures

Read Full Post.....

Just in case you didn't know, the USD$ is hurting big time. All of the major currencies (Yen, Euro, GBP, and the CAD futures) were up today. But for me, I've been tracking the Canadian dollar for a couple of weeks now, and wondered how it would react to today's announcement by the Bank of Canada that interest rates would increase by 25 bps (0.25%). It turns out that the past week was a buy the rumour style run-up, and today was a sell the news day.

The Canadian Feds actually indicated that there maybe even more interest rate increases in store before the end of the year is up. Nonetheless, despite this bullish news and outlook for the currency, it sold off. But, it was not a blow-off type of sell off, and in fact, the current uptrend in the CAD is still intact. I think it could drop as low as 0.9450 and still not violate the current uptrend.

I came across this interesting site which provides comprehensive analysis on the Euro, GBP, Yen and the Canadian Dollar ForEx. It is also forecasting a continued uptrend for the Canadian dollar.

I will be watching the CAD futures for upcoming trading opportunities.

No comments: