Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
USD/CAD dropped to key support
2020-10-08 • Updated
The US dollar waned on hopes for the fiscal stimulus, allowing riskier currencies to move higher, and the Canadian dollar as well.
US unemployment claims came out worse than expected: 840 000 Americans filed for jobless benefits, while 820 000 were expected. It should push USD/CAD to the downside.
The Fed’s meeting minutes have encouraged investors by optimistic comments on the current recovery pace. Moreover, Vice Presidential debates were held yesterday, which turned out considerably less contentious. The post-debates reaction has been positive as Joe Biden is leading the elections race. If he wins, the larger fiscal stimulus should be unveiled than in the case of Trump’s victory.
Despite downbeat crude oil inventories, oil prices continue rallying upwards. As you may know, the Canadian dollar is really sensitive to the fluctuations in oil prices. Therefore, the CAD has been boosted by the rebound of the oil market.
USD/CAD went down to the significant support level of 1.3235, which was acting as resistance during the late August-early September period. It’s likely to bounce off this level, but if unemployment claims came out worse than the forecasts, it may weigh on the USD even more and drive the pair to the downside. The move below 1.3235 will push the price lower to the 200-period moving average of 1.3215. On the flip side, the move above the high of mid-August at 1.3270 will clear the way towards the 100-period moving average of 1.3295.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.