- USD/CAD is trading in the 1.2520s, having bounced from a test of 1.2500 ahead of the release of the BOS.
- Trading conditions have been tentative thus far with US markets shut for MLK Day.
USD/CAD recently bounced at 1.2500, a level which coincides with the pair’s 200-day moving average, and is back to trading in the 1.2520s, though is still down about 0.2% on the day. That actually means that the Canadian dollar is the best performing G10 currency on the day, albeit by a slim margin, despite the slight pullback from highs in crude oil markets. The Bank of Canada will release its quarterly Business Outlook Survey (BOS) at 1530GMT, which will be viewed in the context of how likely the bank is to shift its interest rate guidance at the upcoming January 26 policy meeting to signal a potential rate hike in March.
FX markets may be tentatively buying the loonie in anticipation of a hawkish BOS, which may explain some of the current CAD outperformance. ING think that given “today’s survey may not fully mirror the worsening demand outlook as data was mostly collected before the Omicron crisis become severe… the survey’s explanatory power may be somewhat limited, but there are still a few points to keep an eye on”. These, the bank says, include “inflation expectations (and how many firms still believe high inflation is due to temporary factors), hiring intentions and CAPEX investment figures (which had been quite strong earlier in the year)”.
Market commentators may warn not to read too much into the very shallow price action on Monday given low volumes and thin liquidity as a result of US market closures for Martin Luthar King Jr Day. Things will get more interesting for the pair later in the week, with Canada December Consumer Price Inflation and Retail Sales data and US regional Fed manufacturing surveys for January set to be the most closely followed releases. ING suspect that “external factors” like oil prices are likely to continue to prove “supportive to the currency… we expect any rebound in USD/CAD to stall around the 1.2600 region this week”.
|Today last price||1.2525|
|Today Daily Change||-0.0028|
|Today Daily Change %||-0.22|
|Today daily open||1.2553|
|Previous Daily High||1.257|
|Previous Daily Low||1.2471|
|Previous Weekly High||1.2698|
|Previous Weekly Low||1.2454|
|Previous Monthly High||1.2964|
|Previous Monthly Low||1.2608|
|Daily Fibonacci 38.2%||1.2532|
|Daily Fibonacci 61.8%||1.2509|
|Daily Pivot Point S1||1.2493|
|Daily Pivot Point S2||1.2432|
|Daily Pivot Point S3||1.2393|
|Daily Pivot Point R1||1.2592|
|Daily Pivot Point R2||1.2631|
|Daily Pivot Point R3||1.2692|
Follow us on Telegram
Stay updated of all the news
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.