Canadian Dollar Update December 13, 2019 – Canadian Dollar underpinned by trade hopes
USD/CAD Open: 1.3178-1.3179, Overnight Range: 1.3150-1.3181
Oil is at $59.40 and gold is at $1,476.10. US markets are lower today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3187. Support is at 1.3145.
The Canadian dollar is trading with a firm tone. Prices are underpinned by what appears to be a breakthrough in the Phase 1 US/China trade talks. It led to a flurry of demand for the so-called riskier assets. The Australian and New Zealand dollars rose as did West Texas Intermediate (WTI) oil prices. The Canadian dollar went along for the ride. However, news of the breakthrough is hearsay. There haven’t been any official statements from senior US trade negotiators or their counterparts in China.
Oil traders got into the act as well. Prices are supported by OPEC and Russia agreeing to an additional 500,000 barrel/day in production cuts until the end of March 2020, rising US crude inventories and hopes of increased global demand spurred by a China/US trade deal.
The surge in oil prices and the trade deal news has fueled demand for the Canadian dollar, but its gains have lagged those of the antipodean currencies. Yesterday’s speech by Bank of Canada Governor Stephen Poloz did not factor into Canadian dollar price action.
Traders will be on alert for official confirmation and details of a Phase 1 deal. The only major economic data available is US Retail Sales, which is expected to show a 0.5% m/m rise in November.
Today’s Suggested Range USD/CAD: 1.3130 – 1.3230
By Admin | December 13, 2019 | Daily Update |
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