ONLINE FOREX BROKER
2019-11-11 • Updated
USD/CAD continues to trade mostly sideways in the broad consolidation range of 1.3260 – 1.3455. On Tuesday, the greenback spiked to 1.3455 after we got a disappointing trade balance release out of Canada. Towards the end of the week, loonie managed to snatch substantial gains and recoup some of its losses due to surging oil prices. The latter ones hit their last month highs (Brent oil futures reached $56.07 on Friday) after the launch of US missiles against a Syrian government airbase. The US labor market report released on Friday was a mixed bag with the better-than-expected unemployment rate and missing NFP data.
Next week the Bank of Canada will announce its rate statement on Tuesday at 5:00 MT time. There is a small risk of a significant change in the bank’s current policy stance, as economic performance of the country and Canada’s inflation figures have little changed from February. Country’s exports are still facing some challenges with competitiveness and protectionist rhetoric increases in the US. A dovish stance of the bank will keep Canadian yields and the loonie under pressure. Any hawkish skew in the statement can lead to the short-term appreciation of the CAD. In the end of the week, traders should be focused on Canadian manufacturing sales and US inflation figures.
At the present moment, the technical outlook for the pair is neutral. If prices break the upper border of 1.3260/1.3455 consolidation range, there will be a continuation of the rally towards resistances at 1.3533 (March 9 high), 1.3600. On the downside, the immediate supports can be found at 1.3290/1.3260 levels.
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.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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