Monday saw the Canadian dollar lose value against the currencies of Australia and New Zealand as the probability of more international investment in China grew, according to Bloomberg.
The loonie fell against the majority of its 16 major rivals as Chinese stocks demonstrated their top gains in nearly one month after the China Securities Regulatory Commission chair said China might boost quotas to allow foreign investors to buy stocks and bonds from mainland China.
“With the market less concerned about risk in the first few weeks of the year, and the Aussie and the kiwi picking up more interest, more carry than the Canadian dollar, I think these other two currencies have been a bit more popular,” currency director Ken Dickson with Standard Life Investments in Edinburgh told the news source on Monday. “The interest-rate carry is just a little bit better. It’s slightly more favored in the near term.”
By the end of this year, the Canadian dollar is forecast to grow by at least 1 percent to amount to 98 percent against the U.S. dollar, according to the median of 40 economists surveyed by Bloomberg.
The Canadian Press reports the Canadian dollar’s losses were curbed by a report noting confidence within the nation’s internal business community is climbing.
Risk Disclosure
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.
