CANADIAN DOLLAR OUTLOOK: USD/CAD, GBP/CAD PRICE ACTION IN FOCUS
The Canadian Greenback has traded on its entrance foot to date this week. Loonie power appears to stem largely from USD/CAD and GBP/CAD declining by 50-pips and 170-pips respectively from final Thursday’s shut. Canadian Greenback bulls are doubtless piggybacking on the continuation of broad US Greenback weak spot and a retracement by the Sterling as Brexit deal optimism simmers.
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USD/CAD PRICE CHART: DAILY TIME FRAME (18 AUG TO 29 DEC 2020)
USD/CAD worth motion now hovers proper across the 1.2800-handle. The main forex pair may discover a little bit of buoyancy round this stage, which is underpinned by its 20-day easy shifting common. That mentioned, breaching the 1.2800-price stage may inspire USD/CAD bears to make a push again towards month-to-date lows.
This potential space of technical assist was solid with assist from Financial institution of Canada Governor Macklem, who jawboned the Loonie with dovish commentary by stating that current Canadian Greenback appreciation is ‘important’ and on the central financial institution’s radar, including that CAD power doesn’t replicate home elements.
| Change in | Longs | Shorts | OI |
| Day by day | 2% | 6% | 3% |
| Weekly | 8% | 8% | 8% |
GBP/CAD PRICE CHART: DAILY TIME FRAME (17 AUG TO 29 DEC 2020)
GBP/CAD worth motion appears to have drifted decrease because the Pound Sterling surrenders current beneficial properties resulting from fading Brexit deal optimism. This coincided with one other response to technical resistance highlighted by the 1.7500-handle. GBP/CAD at present gravitates barely above its 50-day easy shifting common, nevertheless, and will quickly see a resumption of shopping for strain close to this technical barrier.
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Preserve Studying – CAD & Oil: The Canadian Greenback and Oil Worth Correlation
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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