What is going on in the market today ?
USD/CAD is still under pressure ahead of 1.24 handle
On Friday, the currency pair USD/CAD found itself under some selling pressure once again, thus eroding the previous session’s moderate revival move.
Overnight, comments from Donald Trump, telling that he needs a stronger greenback, actually helped the currency pair to rebound more than 100-pips from an intraday minimum of 1.2280, hit in the aftermath of positive Canadian core retail sales figures.
However, the recovery move didn’t manage to go further, stumbling on 1.2400 during Asia trade – it was tamed by some renewed US dollar weakness notwithstanding upbeat tone as for the US Treasury bond yields.
Nevertheless, further downside move was cushioned by a sudden retracement in crude prices that tends to affect demand for the commodity-linked currency – the Canadian dollar.
Aside from that market participants are currently staying away from placing hawkish bets, waiting for today's crucial macro reports from Canada and the United States for some new directional impetus.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…