USD/CAD Noob question

iota

iota

Active member
Messages
172
Likes
24
Both had bad economic announcements yesterday, but the U.S initial jobless seemed to have a more adverse effect on USD against other currencies than the comparative effect of the Canadian announcements had on CAD, yet against each other USD gained over 100 pips on CAD.

Anyone know why?
 
Scose-no-doubt's amateur economic hypothesis:
CAD is heavily reliant on energy and a weak recovery and stronger US dollar means lower priced oil.
Canada raised interest rates which suggests inflation whereas deflation is the shout at the moment for USD (has been choppy since then) and have also shown economic activity trending lower and undershooting forecasts for the past three months. Larger output gap and lower GDP?

Who knows mate. I like this type of puzzle :)
 
I would have done well to trade that hypothesis through Long USD/CAD Short crude and Short EUR/USD (EUR/CAD went off its head)

Cest la vie.
 
Put it in the file marked 'experience' and reference it next time.
 
Mate I've got months and months worth of what-could-have-beens. Still can't trade for sh1t though lol.
 
usd is a safe haven currency so at times of bad economic data global economy, usd strengthens (T-bonds etc)
bad us data at the mo is good for usd and bad data for canada is bad for cad
 
Last edited:
scose-no-doubt said:
Scose-no-doubt's amateur economic hypothesis:
CAD is heavily reliant on energy and a weak recovery and stronger US dollar means lower priced oil.
Canada raised interest rates which suggests inflation whereas deflation is the shout at the moment for USD (has been choppy since then) and have also shown economic activity trending lower and undershooting forecasts for the past three months. Larger output gap and lower GDP?

Who knows mate. I like this type of puzzle :)
Click to expand...

cand huge oil producer and biggest exporter of oil to usa
 
Just buy U.S. dollars when the two currencies hit parity and sell U.S. dollars when the Canadian dollars gets to around 0.95 U.S. dollars.
 
I respect Blaiserboy´s opinion, but in my own experience USD/CAD can, most of the times, be highly profitable.
It can be used, i have done it, as a hedge against EUR/USD with very good results, now i understand some members of these forum will say "...what the hell!....", just try, anyway it is a good pair.
Regarding your question, friday was a weird day....
With the USA announcements everyone was expecting the USD to keep loosing ground but it moved against expectations, it favoured me because i had some positions against general expectancies so i am glad i realized what was happening before dropping those positions. It was a weird day...
It is true, USD is a safe heaven currency but when things go bad for USD it lose ground, take a look at the charts.
 
You must log in or register to reply here.

Similar threads

K
CAD question
Replies
2
Views
2K
deadbroke
D
A
USD/CAD position problem (please clarify for me)
Replies
0
Views
2K
aon2win
A
G
Capital gains on Forex
Replies
4
Views
2K
donaldduke
D
I
IGTFX technical analysis
Replies
0
Views
1K
igtfx.research
I
MahiFX
CAD Rapidly Loses its Shine as the Commodity Super Cycle Fades
Replies
0
Views
2K
MahiFX
MahiFX
Top