USD/CAD: Uncertainty surrounding G20, lack of WTI moves trigger pullback
|- Crude remains choppy as geopolitical tension between the US and Iran turns old.
- G20 becomes the news after the announcement of the US and Chinese leaders’ schedule for the meet.
- Light economic platter diverts traders towards politics.
Global traders seem to have lost interest in the US-Iran story but are rather being cautious ahead of the key G20 as they orchestrate a pullback of the USD/CAD pair to 1.3180 during early Tuesday in Asia.
The US President Donald Trump announced fresh sanctions on Iran, even including the Premier’s office, in response to the drone shootdown. However, Iran still stands tough while their ambassador to the United Nations (UN) turns down the odds of a dialogue with the US. Additionally, the Iranian oil minister recently said their energy exports remain intact despite tussles with the US. As a result, oil prices remain clueless at the start of the present week.
Though, doubts surrounding the upcoming meet of the 20 global leaders in Japan (G20) gains major market attention. The latest news from the Reuters suggests that the US President and his Chinese counterpart will meet on the second day of the gathering with readiness to bear the burden of any outcome.
While Crude being the main export item for Canada and China holds the seat for the world’s largest commodity user, energy price movements and developments surrounding the trade with China are the keys to the Loonie pair.
Moving on, the economic calendar offers no major data/events to publish except for the US housing and consumer sentiment figures. With this, political plays surrounding the US-Iran tussle and the likely US-China trade meet at the G20 could keep directing near-term pair moves.
Technical Analysis
Recent low surrounding 1.3150 continues to remain on sellers’ card unless the pair clears early-month bottom near 1.3242, also crossing 200-day moving average around 1.3285. Should prices slip beneath 1.3150, February month trough at 1.3070 might become bears’ favorite.
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