You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Trading Excellence
- Thread starter FXAnalyst
- Start date
Canada's Dollar Falls as Economic Growth Is Less Than Forecast
By Chris Fournier
Aug. 29 (Bloomberg) -- Canada's dollar fell for a second day after a government report showed economic growth in the world's eighth-largest economy was less than forecast.
The Canadian currency has declined 0.5 percent this week as traders increased bets the Bank of Canada will cut borrowing costs. The central bank held its key rate unchanged at 3 percent on July 15. Policy makers cut interest rates four times from December through April.
``It came in softer than expected, and that's negative for the Canadian dollar,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets Inc. in Toronto.
By Chris Fournier
Aug. 29 (Bloomberg) -- Canada's dollar fell for a second day after a government report showed economic growth in the world's eighth-largest economy was less than forecast.
The Canadian currency has declined 0.5 percent this week as traders increased bets the Bank of Canada will cut borrowing costs. The central bank held its key rate unchanged at 3 percent on July 15. Policy makers cut interest rates four times from December through April.
``It came in softer than expected, and that's negative for the Canadian dollar,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets Inc. in Toronto.
Quote from FXAnalyst:
Buying the EUR/JPY at about 159.50-60 for a swing trade attempt shows a good RRR and, more importantly, good win potential based on strategy. Target is 160.40-50 for 80 - 100 pips with a 25-30 pip stop depending on entry. Target may not be hit until next week. and possibly the entry won't either however if it doesn't happen before weekend close. Re-evaluation is important.
Also the CAD/JPY seems to be nearing a bouncepoint and could bounce from just below 203.00 to about 107.00 or higher. Entry at about 102.75-80 could yeild esveral hundred pips however allocating all capital for this trade concept would not be prudent. Taking a position and then closing a partial position of trade for other opportunities is the plan.
An attempted buy at 102.72 was Stopped at 102.47 and re-entry at 102.40 with the larger pattern showing possible completion down and upward target higher. Just took 19 pips of as partial profit and stops are now at 0 for the rest.
USD/CAD seems high at 0595 area and although perhaps not quite complete close, if not done for the day. If another jump up occurs before close then selling will be considered at 0620
Quote from FXAnalyst:
An attempted buy at 102.72 was Stopped at 102.47 and re-entry at 102.40 with the larger pattern showing possible completion down and upward target higher. Just took 19 pips of as partial profit and stops are now at 0 for the rest.
USD/CAD seems high at 0595 area and although perhaps not quite complete close, if not done for the day. If another jump up occurs before close then selling will be considered at 0620
USD/CAD was sold at 0620 with an entry order, profit 12.
Also re-entered the CAD/JPY at 102.36 after spread and did the same for 9 pips.
Will wait to see how the pattern evolves before re-entering.
EUR/JPY came lower, a bit more than expected and I bought at 159.42 with close stop and target at 159.75 for partial profit, 159.95 more distant target. Not an ideal trade but with enough merit to at least garner a few pips.
USD/CAD has neared target close enough to exit.
GBP/CHF dropped nicely although only about 50 pips instead of the 100 hoped for. I took a partial profit of 34 and was Stopped at + 10 on the rest.
EUR/USD may move up above 4050 and then drop to new lows for the day making a target of about 4005-10 for a daytrade with current downtrend.
GBP/CHF dropped nicely although only about 50 pips instead of the 100 hoped for. I took a partial profit of 34 and was Stopped at + 10 on the rest.
EUR/USD may move up above 4050 and then drop to new lows for the day making a target of about 4005-10 for a daytrade with current downtrend.
It seems the best moves are about over for now. NZD/USD news is later today and might prove to propel the NZD upward although a pullback to 6650 may happen first before large upward move. Targeting above 6750 after an ideal entry of about 6650 is to watch for. I've learned on this pair that if small stops are used just before news and news is against the trade, the liquidity can be low enough that stops are not honoured at established price and can be implemented much more distant than the originally set price. Therefore I don't enter trades until after important news generally. So if news is positive or nuetral for N/U and it happens to bounce to 6650 then I'll likley buy. If news is negative then I won't. A sell will be considered then with small target of 6625 or bounce up from that point if news is not strongly negative.
Missed the NZD/USD news and subsequent price drop. A bounce up from about 6475 seems worth watching for, currently at 6494. Target above 6550 unless elliot wave indicates a clear finish before that.
AUD/USD did an ABC up at newstime and has dropped lower, furthe completing a waveset. a temp. bottom at 7950 area may be formed and a rise could be emminant.
EUR/CHh shows a clearer pattern descision , working down from the 5875 level to perhaps 5925ish eventually.
A more clear descent was the U/J earlier, a bit late now for a sell although I did at 107.42 exiting just recently at 107.13 watching for a rebound buy at about 107.00 despite further downtrend expected after bounce up.
EUR/JPY pattern seems to be finishing a downward journey to well below 149.00 perhaps about 148.75 before rebound then lower again.
AUD/USD did an ABC up at newstime and has dropped lower, furthe completing a waveset. a temp. bottom at 7950 area may be formed and a rise could be emminant.
EUR/CHh shows a clearer pattern descision , working down from the 5875 level to perhaps 5925ish eventually.
A more clear descent was the U/J earlier, a bit late now for a sell although I did at 107.42 exiting just recently at 107.13 watching for a rebound buy at about 107.00 despite further downtrend expected after bounce up.
EUR/JPY pattern seems to be finishing a downward journey to well below 149.00 perhaps about 148.75 before rebound then lower again.