The Canadian dollar advanced against the world's reserve currency on Monday after uplifting economic data from the U.S. and China prompted a brighter outlook for the nation whose economy is based on exporting its natural resources, according to Bloomberg.
The host of the globe's top two economies disclosed strong manufacturing data, which also allayed recent concerns about a slackening pace of development and growth in China, the number two economy. The pace of development in the U.S. is believed to be gaining strength as result of data from the U.S. Institute for Supply Management, which one economist found uplifting.
"The composition of today's reading was also encouraging, with strong gains in the production and employment components," economist Kristen Cornelson with RBC told the Canadian Press on Monday. "On a quarterly basis, the index averaged 53.3 in the first quarter, compared to 52.4 in the fourth quarter. Today's reading therefore points to ongoing healthy growth in manufacturing and suggest that the sector continues to be a key support to overall economic growth in the first quarter of 2012."
Bank of Canada governor Mark Carney is set to speak in Waterloo on Monday, which probably will influence the performance of the loonie.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.