|Day's Range||0.746 - 0.748|
|52 Week Range||0.7439 - 0.8160|
USD/CAD pair trades bearish but downside limited owing to subdued crude oil price action.
Even after trading at the highest levels in eighteen-months, the USDCAD has to close beyond 1.3410 on a weekly closing basis in order to aim for 1.3450 and the 1.3500 resistances-levels; however, the 1.3585-1.3600 confluence-region, including upper-line of an ascending trend-channel & horizontal-barrier, can confine the pair’s upside if at all it crosses 1.3500 mark. In case prices rally above 1.3600, the 1.3650 & 1.3740 may offer intermediate halts prior to highlighting the 1.3800 resistance. Alternatively, the 1.3330 & the 1. ...
Dovish BoC outlook/falling oil prices continue to weigh on commodity-linked Loonie as investors await monthly jobs report from the US and Canada.
USD/CAD headed to highest daily close of the year after hitting 20 month high.
It’s a choppy start to the day and unlikely to get better, with a heavy set of stats out of the U.S, Brexit and Trade Chatter to drive the majors.
USD/CAD regains on strong rebound in US Greenback owing to safe haven demand and slide in crude oil price but the pair is likely to trade range bound during American market hours as US market is closed today which could result in reduced liquidity.
With the U.S markets closed focus shifts back to the Pound, which is under intense pressure as British PM struggles in the Commons.
Deep divisions on trade between Washington and Beijing were evident at the Asia-Pacific Economic Cooperation summit, with leaders on Sunday failing to agree on a communique for the first time in their history. U.S. Vice President Mike Pence said in a blunt speech on Saturday that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways. "The Canadian dollar is still very much leveraged to global demand," said Bipan Rai, North America Head, FX strategy at CIBC Capital Markets.
Last week, Powell highlighted the growth of volatility in the global financial markets, the fading effect of tax reform, as well as the decline in demand outside the United States. All these factors, as noted by the head of the Fed, may interrupt rising rates by the middle of next year.
Bullish oil prices underpin Loonie while modest rebound in USD demand following cautious investor sentiment in early Asian market hours keeps pair range bound.
The combination of the tame inflation report, comments from Fed Chair Powell on cooling global demand and the dovish comments from Fed Vice Chair Clarida stating the Fed is getting closer to neutral, are all signs the Fed may slow its pace of rate hikes and this should be bearish for the U.S. Dollar.
Subdued USD price action does little to lend any support or stall the ongoing corrective slide.
With economic data on the lighter side, we can expect geo-politics to continue to take center stage, the Pound in desperate need of good news.
While inflation figures out of the UK and U.S and 3rd quarter GDP numbers out of Germany will be in Focus, it could all come down to Brexit and Italy.
The price of oil, one of Canada's major exports, plunged to lows not seen since last November due to ongoing worries about weakening global demand, oversupply and declines across other asset classes, including equities. U.S. crude oil futures settled 7.1 percent lower at $55.69 a barrel. The slide in oil prices "is delivering a very, very hard blow to the Canadian dollar," said Karl Schamotta, director global markets strategy at Cambridge Global Payments.
A subdued USD demand prompts some profit-taking after the recent upsurge.
Economic data is likely to have a relatively muted impact on the majors through the day, with heightened geo-political risk to drive the EUR and the GBP.
The Canadian dollar edged higher against a broadly stronger U.S. dollar on Monday, supported by a bounce in the price of oil, but remained close to the multi-month low touched on Friday. The price of oil, ...
Brexit and Italy will be in focus through the day, the EU Commission the common denominator, placing GBP and the EUR in the spotlight.
Ahead of the new week, buyers are likely to continue to support the dollar for two reasons: the Fed is still hiking rates and trade tensions are still making the greenback an attractive safe haven asset.