- Canada’s Gross Domestic Product (GDP) for November 2016 reported better-than-expected at +0.4% against forecast of +0.3%. Canadian dollar surged, pressuring USD/CAD to dip below key 1.3000 psychological support on Tuesday.
- USD/CAD also pressured by US dollar’s continued weakening on Tuesday, driven partly by US protectionist stance and Trump Administration “talking down” the dollar while boosting “grossly undervalued” euro.
- Crude oil prices in flux but still currently supported on strength of December’s output cut deal among major OPEC/non-OPEC oil producers. Support for crude oil generally lends a measure of support for oil-linked Canadian dollar.
- Bank of Canada recently stated that a rate cut was still “on the table,” partly due to Trump’s protectionist stance and expected renegotiation or dissolution of the North American Free Trade Agreement (NAFTA).
- Federal Reserve policy decision on Wednesday will help determine near-term direction for the US dollar when the Fed reveals its current interest rate outlook in view of the new Trump Administration’s fiscal stimulus plans.
- Friday’s US jobs report will also be a major driver of short-term US dollar direction. Current forecast: 170,000 jobs added in January.
- USD/CAD fluctuating around critical 1.3000 support juncture ahead of Fed decision and US jobs report. A US dollar rebound from this support on a hawkish Fed and/or better-than-expected jobs data could lead to a USD/CAD upsurge, potentially towards the 1.3400 intermediate resistance target. Any sustained breakdown below 1.3000 on further US dollar weakness should target key support to the downside at 1.2800.
Latest market news
Yesterday 07:58 PM
Yesterday 03:41 PM
Yesterday 01:02 PM
Web Trader platform
Our sophisticated web-based platform is packed with features.
Yesterday 02:36 AM