Canadian Dollar Looks to BoC Interest Rate Decision for Direction:
http://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2011/01/14/Canadian_Dollar_Looks_to_BoC_Interest_Rate_Decision_For_Direction.html
The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market
http://www.fin.gc.ca/n11/11-003-eng.asp
· TSX +62.58 to 13,464.06 financial stocks led the way to a positive close on the Toronto stock market following a strong earnings report from U.S. bank JPMorgan Chase. However the resource-heavy TSX was held back by sliding mining stocks as China moved to slow its economy and rein in inflation by again raising the amount of money banks must keep in reserve. The move raised worries about the demand for commodities.
· DOW +55.48 to 11,787.38
· Dollar -.24c to 101.09c USD closed slightly lower as gold prices slid and traders reacted to the latest moves by China to slow its economy and control rising inflation. It has ordered state-owned banks to set aside an additional 0.5 per cent of deposits as reserves, effective Jan. 20. Reserves vary by institution but could be close to 20 per cent for the biggest commercial lenders. This is viewed as a negative because it will slow down growth and reduce demand for goods and services
· Oil +$.14 to $91.54 USD per barrel Oil prices settled higher after government reports suggested that the U.S. economy is gaining strength.
· Gold -$26.50 to $1360.50 per ounce The gold sector led declines as easing concerns about European sovereign debt problems helped push gold down
Canadian 5 yr bond yields markets +.02bps to 2.56. The spread (based on the NEW MERIX 5 yr rate published rate of 3.99%) is mid comfort zone at 1.43. http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
** The definition of hawkish is this: it is an aggressive stance. Just as a hawk is aggressive in hunting its prey, being hawkish relates to the aggressive stance taken with regard to the topic. For example, if there is a threat of high inflation, to describe the reserve bank of a country being hawkish in any official statement may mean they are leaning towards a stronger action such as favouring an increase in interest rates to dampen high inflation. The antonym (opposite) to hawkish is dovish and would provide a meek and mild statement.
(Courtesy of Barb Morgan, DBD Ontario SouthWest)
