|Day's Range||0.745 - 0.747|
|52 Week Range||0.7439 - 0.8160|
USD/CAD pair trades bearish but downside limited owing to subdued crude oil price action.
The U.S. dollar tracks lower on Friday, following a cooler-than-expected jobs report and some dovish Fedspeak. Commodity-linked currencies strengthen after OPEC members and Russia agree to curb oil production.
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. ...
Commodity-linked currencies, including the Canadian dollar , Norwegian krone and Russian ruble , rallied on Friday, following reports that the OPEC members reached an agreement to curb oil production. The price of the commodity surged up in response, last up nearly 5%. Oil exports are an instrumental part of the Canadian, Norwegian and Russian economies. Meanwhile, the U.S. dollar slipped against their currencies, last buying C$1.3300, down 0.6%, 8.4884 krone, down 0.3%, and 66.1900, off by 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.
Major currencies retrace some of Tuesday’s action in early Wednesday trading, as investors digest President Donald Trump’s latest comments on China trade. Meanwhile, the Canadian dollar drops to a six-month low versus its U.S. rival, following the Bank of Canada policy update.
The Canadian dollar tumbled to its lowest level since early June against its U.S. rival on Wednesday, as the Bank of Canada acknowledged the strain falling oil prices will have on the Canadian economy. Activity in the sector "will likely be materially weaker than expected," a statement by the central bank read. That said, the BOC expected interest rates needed to rise to a neutral range to achieve its inflation target. On Wednesday, its overnight benchmark rate was kept unchanged at 1.75%. The BOC also said the economy was losing momentum going into the fourth quarter due to heightened trade uncertainty in the summer that impacted business investment. However, the signing of the USMCA trade agreement to replace the North American Free Trade Agreement should have a positive impact. One U.S. dollar was last sharply higher, buying C$1.3393, compared with C$1.3266 late Tuesday.
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.
The U.S. dollar is weaker Monday as risk appetite across financial markets increases in the wake of the trade war cease-fire between the U.S. and China, and higher oil prices boosted commodity currencies.
The U.S. dollar is modestly stronger on Friday, recovering from days marked by weakness on the back of dovish Fed speak, as currency traders ready themselves for a headline-heavy weekend with the G-20 summit kicking off in Buenos Aires.
The U.S. dollar inch higher versus its main rivals Friday, as U.S. traders return from the Thanksgiving holiday, and investors closely track an intensifying decline in crude oil.
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.