News & Analysis
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The roughly two cent EURUSD rally seen from late September’s lows may seem small in absolute historical terms, but is significant in the context of the current low volatility environment in G10 FX.
While the pair broke the psychological barrier in the early part of January due to rising geopolitical tensions in the Middle East and its ensuing impact on oil markets, USDCAD has since resumed trading above $1.30 leaving the base case intact.
Leaders in business and politics will gather in Davos this week for the annual World Economic Forum. The data calendar is brimmed for the loonie this week after it slumped against the dollar on Friday.
This morning the loonie is firming after stable Q4 GDP figures came out of China. The 6.1% 2019 growth figure is helping oil prices tick marginally higher this morning with the loonie clinging onto the move too.
The loonie joined most of the G10 currency board yesterday to take its pound of flesh from the US dollar with USDCAD falling 0.15% over the course of the session. Improved risk appetite as both US and Chinese officials signed the narrow trade deal helped the Canadian dollar reverse losses suffered thus far this week.
The loonie has held strong considering oil markets continue to retrace the spike seen following the missile attack in Iraq. Data remains light on the ground today, meaning attention will remain focused on global drivers.
CAD The loonie traded flat yesterday, as markets focussed on the impending US-China trade deal and data flow was thin. Crude oil prices saw further declines, with WTI reaching fresh lows for the year, although this did not have a huge impact on CAD. The Bank of...
The loonie spent much of last week on the back foot as oil markets tumbled from recent highs. Last Wednesday, the DoE reported a sharp rise in US inventories yet again bringing heightened supply fears to the market’s attention.
The loonie continued to weaken yesterday against the USD, on the back of corrected WTI oil prices following US-Iran stand down. Comments from Bank of Canada’s Governor ahead of a “fireside chat” in Vancouver yesterday, were aligned to Poloz’s neutral stance of last.
The loonie erased all of its gains in the first week of the year, after the de-escalation in the Middle East region dragged down the WTI oil price to its 3-weeks low. The unexpected 1.16 million barrels build up in oil inventories reported by the DOE added to the WTI plunge, firming the pressure on CAD.