|Day's Range||0.75 - 0.752|
|52 Week Range||0.7499 - 0.8290|
Market risk appetite returns through the morning, with policy divergence continuing to favor the U.S Dollar. Direction for the majors will be hinged on noise from the Oval Office and Central Bank member commentary through the day.
The Canadian dollar weakened to a nearly one-year low against its U.S. counterpart on Tuesday as an escalating trade dispute between the United States and China pressured global stock and commodity markets. Equity and oil prices fell after U.S. President Donald Trump on Monday threatened to impose a 10 percent tariff on $200 billion of Chinese goods, which Beijing warned it would fight back against with "qualitative" and "quantitative" measures. U.S. crude prices were down 1.6 percent at $64.82 a barrel.
In case if the pair continue trading southwards after 1.1440, the 1.1370, the 1.1330 and the 1.1300 may please the Bears. Assuming that the pair reverses from current levels, the 1.1650 and the 1.1730 can act as immediate resistances before highlighting the 1.1835-50 area for one more time. Alike EURUSD, the NZDUSD is also near to important support-zone, namely the 0.6885-80, but break of which might not trigger the pair’s plunge as an upward slanting trend-line, at 0.6860 now, could still challenge the sellers.
Is the trade war on? Following China’s response to the U.S tariffs on China exports to the U.S, it could get ugly, with Trump’s first tweet of the week likely to have a material bearing of risk sentiment through the week.
The US dollar has exploded to the upside during the week, breaking through a significant amount of resistance against the Canadian dollar. Oil markets course could help if they start to fall, but quite frankly I think a lot of this has to do with fears about trade spat between the US and Canada.
The US dollar has rallied significantly on Friday against the Canadian dollar, as there has been a bit of a “risk off” move during the day as tariffs were slapped on the Chinese by the Americans, that of course has the commodity currencies falling overall.
By Fergal Smith TORONTO (Reuters) - The Canadian dollar weakened on Friday to the lowest in nearly a year against its U.S. counterpart, as U.S. oil prices tumbled nearly $2 a barrel and domestic data showed a surprise drop in manufacturing sales. The price of oil, one of Canada's major exports, fell ahead of an OPEC meeting in Vienna next week. "We could see a production hike from Saudi Arabia, which could take an awful lot of froth out of the oil price and that is weighing on the Canadian dollar," said Michael Hewson, chief market analyst at CMC Markets (UK).
The markets were mixed through the early part of the day, the introduction of tariffs having a mixed impact on the markets, with the Yen finding little support ahead of what will likely be a noisy day ahead for the Oval Office.
The US dollar initially fell during trading on Thursday, reaching down to the 1.2950 level. The market looks likely to see a lot of volatility, mainly because the oil markets will continue to be very noisy as Russia and OPEC continue to meet.
It’s a busy time for the markets, with focus shifting to today’s inflation figures out of the UK and the ECB Press Conference later today, positioning coming in the wake of FED rate hike on Wednesday.
The US dollar rallied a bit during the trading session on Wednesday, as we reach towards the 1.3050 level. We pulled back from there, reaching towards the 1.30 level. That’s an area that was previous resistance and should now be thought of as potential support. Although this pair is going to continue to be very noisy, the reality is that we certainly have an upward proclivity.
Market players are unlikely to be overly surprised if the Federal Reserve raises US interest rates by another 25 basis points this afternoon, as this has been widely expected by many.
For the FX traders, today is all about the FED and all the events surrounding this institution like the rate decision, statement and economic projections. USDCAD is attacking the upper line of the ascending triangle pattern. H4 candle closing above the horizontal resistance will give us a mid-term buy signal.
The US dollar has gone back and forth during the trading session on Tuesday, as we await oil inventory figure numbers, a resolution to the recent spat between Justin Trudeau and Donald Trump, and of course the overall economic situation in the two countries.
While the 1.1830-40 horizontal-region seems crucial for the EURUSD in order to justify its strength in targeting the 1.1900 and the 1.1950 resistances, pair’s upside beyond 1.1950 might have a challenging task to surpass the 200-day SMA level of 1.2010 on a D1 basis. In case if the quote provides a Daily closing above 1.2010, the 1.2100 and the 1.2160, comprising 100-day SMA, could act as intermediate halts before highlighting the 1.2280 TL resistance. On the downside, the 1.1730 and the 1.1675 could entertain the sellers ahead of questioning them with 1.1640-45 support-zone. ...
With the US now imposing steel tariffs on Canada, Mexico, and the European Union, while exempting Australia, South Korea, Brazil, and Argentina – what does this mean for the Canadian stock markets, and what will happen to the Australian markets, if Australia gets hit with the steel tariffs?
The first instrument is the USDCAD, where the price is locked inside of the ascending triangle pattern, so we are below the horizontal resistance and above the dynamic support. Breakout of the first one will give us a buy signal and the breakout of the second one will open us away towards new lows. The precious metal is in the symmetric triangle pattern, waiting for a very important breakout.
After the G7 conference, we have seen a bit of trouble between Trudeau and Trump, which of course has the markets going wild. The US dollar gapped almost 100 pips immediately at the open, pulled back a bit, and then rally again. We are currently dancing around the 1.30 level, which is an area that has been important more than once.
The US dollar fell a bit during the week but turned around to rally again. We had at one point broken above the 1.30 level, so I think at this point we will continue to bounce around and test this area as it is so crucial. We have the usual influence as in this market that should be paid attention to as well, but I think longer term traders are going to struggle to put a lot of money to work.
The US dollar initially tried to rally during the trading session on Friday but turned around to fall a bit. At the end of the day, it looks as if we are continuing to struggle with the 1.30 level above, which has been important more than once. I think that eventually we could try to break out, but it’s going to take a significant amount of momentum building.