What’s Behind the Sell-Off in USD/CAD?
January 28, 2009
The biggest mover this morning is the Canadian dollar which has rallied close to 300 pips against the US dollar and is closing in on the 1.20 level. What’s behind the move?
1. Major merger and acquisition flow. Mexican breadmaker Bimbo closed on a $2.38 billion acquisition of U.S. Bread making unit of Canada’s George Weston Ltd
Story in Reuters
Why does M&A flow Matter to Currencies
2. Oil prices are back above $40 a barrel and rising
3. OPEC Says Oil prices at $40-$50 is too cheap, prices need to be between $75 0 $100.
4. IMF says Oil May AVerage $50 a barrel this year and $60 a barrel next year
Source: eSignal
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Posted in 2009 canadian dollar, Bank of Canada, Canadian Dollar, USD/CAD, forex blog
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January 28th, 2009 at 12:18 pm
rally could also be due, in part, to a positive reaction to the federal budget released yesterday.
January 28th, 2009 at 1:57 pm
the oil price’s are now back at 40 dollars and it rising.. i think a year is to long to put it up at 100 dollars.. cause in that situation.. they had the power to pull the price up.. badly in short..
January 28th, 2009 at 2:09 pm
Well do you think people stop on investing because of the amounts they lost in the stock market? Nobody wants like this situation but what can we do????