Canadian Dollar Update – Canadian dollar trading lower
- CAD/US 10-year yield spreads widen in favour of US
- Sinking oil prices weighing on Loonie.
USDCAD: open 1.3895, overnight range 1.3886-1.3907, close 1.3894, WTI $67.16, Gold, $2729.16
The Canadian dollar came under renewed pressure overnight stemming from geopolitical issues.
Oil traders reacted and sold WTI, driving the price down 6.6%. The oil price drop acted as a drag on Canadian dollar gains.
Japan’s ruling coalition which has governed the country since 2009 lost its majority in yesterday’s election which caused a bit of safe-haven demand for US dollars. Traders hate uncertainty.
EURUSD pair bounced in a range of 1.0782 to 1.0821, with the lowest point occurring during the Asian trading session. The 6.6% drop in oil prices underpinned prices but widening EU and US yield differentials are capping gains. Upcoming German GDP figures for Q3 are expected on Thursday, and these could indicate a potential technical recession.
GBPUSD reached a low of 1.2940 during the Asian session and then climbed to 1.2986 by the time the New York market opened, reflecting overall movements in the US dollar. Traders are wary ahead of the UK budget announcement this week.
USDJPY opened with a gap higher, moving from 152.30 at the close of Friday’s New York session to 153.88 in Asia, triggered by reports that Japan’s ruling coalition could not secure a majority. Prices then pulled back to 152.53 during early trading in New York as attention shifted toward the upcoming Bank of Japan monetary policy meeting scheduled for Thursday, where no rate changes are anticipated.
AUDUSD followed the trends of the broader US dollar, trading within a range of 0.6579 to 0.6618, currently positioned near the upper end of that range in New York. Traders are awaiting Wednesday’s inflation and retail sales reports. Meanwhile, NZDUSD was confined to a range of 0.5757 to 0.5790, with trading volumes lower than usual due to the closure of New Zealand markets for Labour Day.
By KBFX | October 28, 2024 | Daily Update |
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