USD/CAD: Sellers catch a breath as WTI carries pullback, risk tone improves

  • USD/CAD stops further declines amid mixed trade/political news, WTI recovery.
  • The broad US Dollar (USD) strength becomes an additional catalyst to watch.

USD/CAD sellers are catching a breath around 100-day exponential moving average (EMA) as the pair traders near 1.3275 during early Monday.

The Loonie traders seem to be troubled between mixed signals from the upbeat WTI prices and challenges to the US-China trade deal, not to forget about China’s latest measures towards a free-floating currency system.

The US President Donald Trump’s recent media remarks dampen recession risk and further escalates market risk-on, which in turn can be witnessed in rising global treasury yields. The US 10-year treasury yield is on its run-up to 4 basis points (bps) to 1.58% by the press time.

It should also be noted that the People’s Bank of China (PBOC) recently announced measures to alter their bank loan rates and some additional modifications to the policies that govern them.

Prices of Oil, Canada’s largest export item, also extend Friday’s recovery as rising optimism propels the energy prices.

Although pessimism surrounding a trade deal between the US and China, coupled with global recession fears, can keep exerting downside pressure on the overall market sentiment, the US Dollar (USD) strength will be closely observed ahead of this week’s key events like latest monetary policy meeting minutes from the US Federal Reserve and global policymakers’ speech at the Jackson Home Symposium.

Technical Analysis

100-day EMA around 1.3250, closely followed by the 200-day EMA level of 1.3240, limits the quote’s near-term declines towards 1.3200 round-figure while 1.3340/45 seems to be the immediately strong upside resistance.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1100 amid fears of US-EU trade war, mid-East flare up

EUR/USD has kicked off the week below 1.1100, close to its closing levels on Friday. Fears of US tariffs against the EU and the fallout from the attack on Saudi oil installations weighs.


GBP/USD slips below 1.2500 ahead of Johnson-Juncker meeting

GBP/USD is trading below 1.2500, off the highs. UK PM Johnson will meet EC Commission President Juncker to discuss Brexit amid reports of progress. Tensions in the Middle-East and uncertainty ahead of the Fed impact markets.


USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 


Gold prices shot higher by over 1% in risk-off start to the week

Gold prices have shot higher in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing.

Gold News

Forex Today: Oil prices skyrocket after attack on Saudi installation, Chinese economy slows, Brexit talks continue

Here is what you need to know on Monday, September 16: A drone attack on a Saudi oil facility knocked down around 50% of the Kingdom's output and 5% of global production.

Read more