{"id":32241,"date":"2012-09-12T07:45:02","date_gmt":"2012-09-12T11:45:02","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=32241"},"modified":"2012-09-12T07:25:14","modified_gmt":"2012-09-12T11:25:14","slug":"usdcad-drivers-of-risk-sentiment-boost-the-canadian-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/09\/12\/usdcad-drivers-of-risk-sentiment-boost-the-canadian-dollar\/","title":{"rendered":"USD\/CAD: Drivers of Risk Sentiment Boost the Canadian Dollar"},"content":{"rendered":"

Article by AlgosysFx Forex Trading Solutions<\/a><\/p>\n

While across the Atlantic the German Constitutional Court\u2019s decision on the legality of the Euro Zone\u2019s permanent bailout fund occupies the markets, North America braces itself for the Federal Reserve and Apple. Trading today between the two North American dollars sees a sustained bearish pull by the Canadian dollar against its US counterpart.<\/p>\n

The German top court ruled in favor of the European Stability Mechanism today. Germany’s Constitutional Court said that the country can ratify the Euro Zone’s new rescue fund and budget pact as long it can guarantee that there will be no increase in German financial exposure to the bailout fund without the parliament’s approval.<\/p>\n

With the threat against the future of the ESM now cleared, the financial markets are able to take a breather. In an interview of John Noonan, a Senior FX Analyst at Thomson Reuters at CNBC Asia\u2019s \u201cSquawk Box\u201d, Noonan acknowledged a run in confidence since Draghi proclaimed that the ECB would do whatever it takes to save the Euro. The ECB has said that it will buy the government bonds of those countries under financial pressure only if they apply to the bailout fund for support first. A boost in risk confidence followed after the ruling, where the higher-yielding Loonie stands to benefit.<\/p>\n

Across the Atlantic, the Fed commences its two-day meeting today \u2013 highly anticipated by market participants on increasing sentiment that the Fed meeting would lead to the launch of a new quantitative easing program as early as this week. This view was supported by a huge disappointment from last Friday\u2019s jobs report which highlighted the \u201cgrave\u201d situation of the labor market. Such speculations push the demand for the Canadian currency on added risk confidence.<\/p>\n

Moreover, the markets focus today on Apple and how the company handles the product launch of the iPhone5. \u201cApple is such a major factor in the stock market that traders say the quick \u201cthumbs up\u201d or \u201cthumbs down\u201d on the product, and the presentation could be big for the market,\u201d a report by CNBC states.<\/p>\n

Further, crude oil traded near the highest level in three weeks on speculation that US and China will add measures to revive their economies. Crude oil is Canada\u2019s largest export, and appreciation in the commodity\u2019s valuation boosts the value of the Loonie dollar as well.
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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by AlgosysFx Forex Trading Solutions While across the Atlantic the German Constitutional Court\u2019s decision on the legality of the Euro Zone\u2019s permanent bailout fund occupies the markets, North America braces itself for the Federal Reserve and Apple. Trading today between the two North American dollars sees a sustained bearish pull by the Canadian dollar … <\/p>\n

Continue reading “USD\/CAD: Drivers of Risk Sentiment Boost the Canadian Dollar”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-32241","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/32241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=32241"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/32241\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=32241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=32241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=32241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}