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USD/CAD sinks to lows near 1.3550

FXStreet (Edinburgh) - The Canadian dollar has sharply reverted its initial negative tone, now sending USD/CAD to fresh daily lows in the mid-1.3500s.

USD/CAD lower on oil recovery

The Canadian dollar is now deriving further support from the recovery of crude oil prices, as both the West Texas Intermediate and the Brent are up more than 1% and leaving behind part of yesterday’s deep pullback.

Crude oil prices remain the almost exclusive driver behind the pair as of late, with the EIA’s weekly report on crude oil inventories being the only release of note today in an otherwise uneventful docket.

USD/CAD levels to consider

As of writing, the pair is losing 0.16% at 1.3565 and a drop below 1.3221 (55-day sma) would expose 1.3195 (100-day sma) and then 1.3157 (7-month uptrend). On the flip side, the immediate hurdle aligns at 1.3621 (2015 high Dec.3) followed by 1.3700 (psychological level).

JPY: Yen supported by the reduced BOJ easing expectations - MUFG

Derek Halpenny, European Head of GMR at MUFG, suggests that the speculation remains that the BOJ may coincide the fiscal stimulus signalled by the government with additional monetary easing, perhaps as early as Q1 2016 but the upward revision to Q3 real GDP and the machinery orders data released today suggest that the BOJ can persist with its current stance for now.
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EUR/GBP falls into losses

The EUR/GBP now trades moderately weak on the day as the cable hit a fresh session high, while the common currency struggled to extend gains despite losses in the stock markets.
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