ONLINE FOREX BROKER
2019-11-11 • Updated
USD/CAD was trading choppily in the course of the past week. The loonie got lots of strength in the first half of the week with the Bank of Canada being more positive on the domestic growth outlook, a less hawkish Fed’s meeting minutes and investors’ expectations of supply cuts ahead of the OPEC meeting. The Canadian dollar has given back lots of its earlier gains on Thursday as oil prices dropped after the OPEC agreed to extend production deal by an additional 9 months, but failed to provide deeper cuts. At the current moment, USD/CAD is trading at 1.3440 just a few pips below its weekly opening price.
Next week, traders will get lots of economic data from the American continent. Canada’s data agencies will release the gross domestic figures on Wednesday, trade balance and labor productivity data on Friday. The USD traders will be waiting for the CB consumer confidence report coming on Monday, Tuesday’s Chicago PMI and Friday’s labor market report from the US. The loonie’s high correlation to crude prices will make it very susceptible to the release of US oil inventories and Baker Hughes’ rigs estimate coming on Thursday and Friday respectively.
USD/CAD dropped to 1.3385 in the course of the past week. Falling oil prices helped the pair to rebound sharply to 1.3490. At the present moment, USD/CAD is trading at 1.3445. If it manages to test the lower border of the long-term trading channel located at 1.3390, we expect it slide further towards 1.3345 (100-day MA), or towards the psychologically important support at 1.3300. The nearest resistances can be found at 1.3490, 1.3545 (crossover of the 50 and 200 MAs on the H4 timeframe).
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.
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 latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
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.
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