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Canada’s Dollar Falls After US Job Report, Trichet’s Comments July 29, 2008

Posted by malibusac in Currency News.
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“In general, what we’ve seen is the Canadian dollar trading in sympathy with the U.S.,” said John McCarthy, a director of currency trading at ING Financial Markets LLC in New York. “If people are quite bearish in the U.S., they became bearish on the Canadian dollar. We should see a rejection of the C$1.0200 level, and maybe we drift back to C$1.0130 or C$1.0140.”

Canada’s dollar will decline to C$1.07 by the second quarter of 2009, according to the median forecast of 33 analysts in a Bloomberg survey.

The two-year government bond’s yield decreased 2 basis points, or 0.02 percentage point, to 3.21 percent. The price of the 3.75 percent security due in June 2010 rose 4 cents to C$101.

The difference in yields between two- and 10-year securities has narrowed to 53 basis points from 81 basis points on June 5.

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