department of Commerce reported on Friday, that the demand for U.S.-made durable goods dropped for the first time in four months as orders for new aircraft plunged 67%. Orders for durable goods fell 1.3% in March to a seasonally adjusted 6.7 billion after a 1.1% gain in February. However, excluding transportation goods, the core rate showed a rise of 2.8% to 6.5 billion in March, the fastest increase since the recession began in December 2007.
Across the border, the Canadian dollar posted its biggest five-day gain in three weeks as the central bank signaled that a rate hike could possibly happen as soon as June 1st. Last week the Loonie hit its strongest price against the USD in 22 months, gaining beyond parity as investors speculated the Bank of Canada will raise rates before the U.S. Federal Reserve does. On April 20th, the Bank of Canada announced that the time for holding its benchmark interest rate at a record low 0.25% in order to spur growth “is passing” as the country’s economy rebounds from a global recession. According to Blake Jespersen, director of foreign exchange in Toronto at Bank of Montreal, the nation’s fourth-largest lender an announcement such as this one “really sets the market up for probably five consecutive hikes from the Bank of Canada, which should keep the Canadian dollar on a firm footing for quite some time.”
On Friday, Statistic Canada announced that the country’s annual inflation rate unexpectedly slowed in March to 1.4% from 1.6% the previous month, as clothing and mortgage interest expenses declined while gasoline costs rose. The Core rate, which excludes the eight most volatile items, slipped to 1.7% from 2.1%.Â
On a positive note, Canadian retail sales had increased for their third straight month, rising by 0.5% to C billion (.9 billion). Consumer spending helped pull the country out of a recession last year and the BOC said this week consumers will remain one of the biggest sources of economic growth through 2012. Excluding car and parts dealers, the so called Core retail sales slipped 0.1% in February, Statistics Canada said. Â While the CAD hit a low of .00626, the currency managed to recover from its losses to close blow the parity line at .9989.
Retrieved from “http://www.articlesbase.com/currency-trading-articles/forex-investors-continue-to-doubt-greece-2236855.html”
(ArticlesBase SC #2236855)
Forex Ace –
About the Author:
What is Forex? All the Forex news you need and more: Forex Market , Forex Demo
]]>
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
forex, forex market, commodity currencies, forex analysis, forex online, forex trading, forex news, forex daily, forex qoutes, forex signals, forex charts, forex rates, currency trading, foreign exchange, trade forex
Latest Currency Trading Articles
More from Forex Ace
The euro stabilized in the Asian forex market
The euro stabilized in the Asian forex market early this morning after the Greek finance minister said yesterday the aid would arrive in time to avert what would be the euro zone’s first sovereign debt default
By:
Forex Acel
Finance>
Currency Tradingl
Apr 26, 2010
Forex: Commodity Currencies Face Tough Times?
Many Forex analysts now feel that commodity currencies risk becoming victims of their own success as this year’s rally has made them increasingly dependent on continuous economic upside surprises to drive them beyond key technical barriers
By:
Forex Acel
Finance>
Currency Tradingl
Apr 14, 2010
Axel Weber: “Greek bailout will be implemented soon”
The man who is likely to succeed Jean-Claude Trichet as the President of the European Central Bank reportedly said that the Greek bailout will be implemented soon and dismissed the idea that the Euro Zone is at risk of falling apart
By:
Forex Acel