USD/CAD Noob question

[iota]

Both had bad economic announcements yesterday, but the U.S initial jobless seemed to have a more adverse effect on USD against other currencies than the comparative effect of the Canadian announcements had on CAD, yet against each other USD gained over 100 pips on CAD.

Anyone know why?

 

[scose-no-doubt]

Scose-no-doubt's amateur economic hypothesis:
CAD is heavily reliant on energy and a weak recovery and stronger US dollar means lower priced oil.
Canada raised interest rates which suggests inflation whereas deflation is the shout at the moment for USD (has been choppy since then) and have also shown economic activity trending lower and undershooting forecasts for the past three months. Larger output gap and lower GDP?

Who knows mate. I like this type of puzzle 🙂

 

[iota]

Who knows mate. I like this type of puzzle 🙂

Glad someone does :/

 

[scose-no-doubt]

I would have done well to trade that hypothesis through Long USD/CAD Short crude and Short EUR/USD (EUR/CAD went off its head)

Cest la vie.

 

[iota]

Put it in the file marked 'experience' and reference it next time.

 

[scose-no-doubt]

Mate I've got months and months worth of what-could-have-beens. Still can't trade for sh1t though lol.

 

[Blaiserboy]

Mate I've got months and months worth of what-could-have-beens. Still can't trade for sh1t though lol.

USDCAD may not be the best pair to attempt to trade.

 

[Scotty2Cues]

usd is a safe haven currency so at times of bad economic data global economy, usd strengthens (T-bonds etc)
bad us data at the mo is good for usd and bad data for canada is bad for cad

 

[Scotty2Cues]

Scose-no-doubt's amateur economic hypothesis:
CAD is heavily reliant on energy and a weak recovery and stronger US dollar means lower priced oil.
Canada raised interest rates which suggests inflation whereas deflation is the shout at the moment for USD (has been choppy since then) and have also shown economic activity trending lower and undershooting forecasts for the past three months. Larger output gap and lower GDP?

Who knows mate. I like this type of puzzle 🙂

cand huge oil producer and biggest exporter of oil to usa

 

[scose-no-doubt]

cand huge oil producer and biggest exporter of oil to usa

never knew that usa mostly took Canadian oil. Thought they used up the Arabs' oil so they don't drain out the west.

 

[Blaiserboy]

never knew that usa mostly took Canadian oil. Thought they used up the Arabs' oil so they don't drain out the west.

http://www.eia.doe.gov/pub/oil_gas/...ons/company_level_imports/current/import.html

 

[amit1986]

Just buy U.S. dollars when the two currencies hit parity and sell U.S. dollars when the Canadian dollars gets to around 0.95 U.S. dollars.

 

[fayalac]

I respect Blaiserboy´s opinion, but in my own experience USD/CAD can, most of the times, be highly profitable.
It can be used, i have done it, as a hedge against EUR/USD with very good results, now i understand some members of these forum will say "...what the hell!....", just try, anyway it is a good pair.
Regarding your question, friday was a weird day....
With the USA announcements everyone was expecting the USD to keep loosing ground but it moved against expectations, it favoured me because i had some positions against general expectancies so i am glad i realized what was happening before dropping those positions. It was a weird day...
It is true, USD is a safe heaven currency but when things go bad for USD it lose ground, take a look at the charts.