Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Canadian dollar reaches seven-week high on Nexen-deal approval

By Cecile Gutscher and Ari Altstedter, Bloomberg

December 10, 2012 • Reprints

The Canadian dollar reached a seven- week high versus its U.S. peer as the government approved Cnooc Ltd.’s $15.1 billion takeover bid for Nexen Inc.

Canada’s dollar rose for a fifth day against the greenback after Prime Minister Stephen Harper on Dec. 7 approved Chinese- controlled Cnooc’s bid while cautioning that future investment in Canada’s energy sector will only occur under “exceptional” circumstances and outlining tighter rules for takeovers. The currency gained against the majority of its 16 most-traded counterparts as better-than-forecast factory data from China signaled stronger demand for Canada’s raw materials.

“Odds are it will be quite positive for the Canadian dollar,” Sebastien Galy, senior foreign-exchange strategist for Societe Generale SA, said of the Nexen deal by phone from New York. “There’s been some reservation from Asia about capital flows, and this provides some clarification that there will be regulation and not protectionism.”

The Canadian dollar, called the loonie for the image of the aquatic bird on the C$1 coin, rose 0.2 percent to 98.68 Canadian cents per U.S. dollar at 3:53 p.m. in Toronto, after earlier touching 98.65 cents, strongest since Oct. 19. One Canadian dollar buys $1.0134.

Crude-oil futures fell 0.3 percent to $85.70 per barrel in New York after gaining as much as 1 percent. The Standard & Poor’s 500 Index increased 0.1 percent.

Canadian government bonds rose, with the 10-year benchmark bond yield falling one basis point, or 0.01 percentage point, to 1.70 percent. The 2.75 percent security maturing in June 2022 was 6 cents higher at C$109.15.

Tight Range

Trading of the Canadian dollar versus its U.S. counterpart was at the tightest range since July 4, and is likely to be hemmed in by the prospect of the Nexen deal closing at the end of the year, Greg Moore, a currency strategist at Toronto- Dominion Bank in Toronto, said in a telephone interview.

“A lot of market participants will hold off on buying the USD against CAD if they know it’s going to benefit from a whale- sized flow when the deal closes,” Moore said. “Most of the CAD benefit is a psychological benefit.”

The Canadian government approved the takeover of Nexen and simultaneously gave its blessing to the C$5.2 billion ($5.27 billion) offer for Progress Energy Resources Corp. by Petroliam Nasional Bhd, Malaysia’s state-owned energy company.

Deal-Making

There have been 43 acquisitions of Canadian companies in deals worth more than $3.5 billion since 2000, according to data compiled by Bloomberg. The Canadian dollar has advanced in 56 percent of cases for two weeks following the announcements versus its U.S. counterpart with an average gain of 0.2 percent.

The biggest advance in the Canadian dollar was a 2 percent gain after Kinross Gold Corp. acquired Red Back Mining Inc. in 2010. The largest decline was in July 2008 as Teck Resources Ltd. purchased Fording Canadian Coal Trust.

China’s factory production climbed 10.1 percent in November while retail sales growth accelerated to 14.9 percent, the National Bureau of Statistics said Dec. 9. Both figures exceeded analysts’ median estimates compiled by Bloomberg.

Canada’s currency has gained 1.5 percent this year versus nine developed-nation peers tracked by Bloomberg Correlation- Weighted Indexes. The greenback has dropped 2.3 percent and the yen has been the biggest loser, tumbling 9.5 percent. New Zealand’s dollar leads gainers, up 5.7 percent.

Bloomberg News

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
Potentially dovish ECB could accelerate EUR/USD’s breakdown
GBP/CAD: Canadian CPI and retail sales in focus
Daily forex rundown: Euro, yen, Aussie & CAD
Daily forex rundown: Euro, yen, Aussie & CAD
Daily forex rundown: Euro, yen, Aussie & CAD
Previous
U.S. stocks rise with metals on China
Next
Fiscal cliff negotiations demand market’s attention
Related Terms
Bloomberg 5254dollar 3859forex 2882Standard & Poor 2008Economy 1513fx 1080energy sector 393Societe Generale SA 224Canadian dollar 222Loonie 199National Bureau of Statistics 156Kinross Gold Corp. 104Canadian government 91Nexen Inc. 90Stephen Harper 41Fording Canadian Coal Trust 36Teck Resources Ltd. 33Sebastien Galy 23state-owned energy 13Crude-oil futures 10Cnooc Ltd. 9Red Back Mining Inc. 7Toronto- Dominion Bank 4Petroliam Nasional Bhd 4Progress Energy Resources Corp. 3Greg Moore 2

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images