CAD firms modestly on the day – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) is little changed over the weekend, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CAD retests key USD support at 1.4350

"There has been scant news on US/Canada tariff issues but PM Carney did remark Friday that there was progress in talks, without specifying what that progress was. The CAD is catching a bit of a bid off the generally softer USD tone to press up against the recent range low (and technical support) for the USD in the mid-1.43s. The USD continues to trade significantly above our fair value estimate (1.4109 currently), suggesting ample downside potential in spot at least."

"Technical signals are mixed. On the one hand, price moves last week indicated a short-term top/reversal (bearish 'evening star' candle pattern) developed around Tuesday’s spot high. Firm resistance sits at 1.4515/20 now and a little higher still at 1.4545/50."

"However, the USD enjoys the support of solidly bullish trend momentum across the intraday, daily and weekly charts now which will bolster support around 1.4340/50 (40-day MA and last week’s low). A push under 1.4350 may see spot ease back to 1.4225/50."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.