Canadian Dollar Update February 12, 2020 – Canadian Dollar scratches higher
USD/CAD Open: 1.3285-1.3286, Overnight Range: 1.3253-1.3295
Oil is at $51.52 and gold is at $1,567.60. US markets are higher today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3286. Support is at 1.3225.
The Canadian dollar managed to scratch out a small gain overnight, and domestic developments did not have anything to do with the move. The Canadian dollar got a lift from a shift in global risk sentiment, which turned positive on coronavirus developments.
EURUSD continues to be weighed down by negative sentiment stemming from the latest German political uncertainty, more dovish comments from European Central Bank officials about the need to maintain an accommodative monetary policy, and bearish technicals following the break of support at 1.0940. The dovish comment from the ECB officials contrasted with Fed Chair Powell’s monetary policy outlook. He said the US economy was in a “very good place.”
GBPUSD climbed on the back of a profit-taking rally that is squeezing short GBPUSD positions. There is more evidence that the EU and UK trade negotiations will be acrimonious.
The New Zealand dollar started the Toronto session as the best performing currency against the US dollar today. NZDUSD rallied from 0.6403 to 0.6484 after the Reserve Bank of New Zealand appeared to adopt a neutral to hawkish monetary policy outlook. The RBNZ left the Overnight Cash Rate (OCR) unchanged at 1.00%, which was widely expected. The central bank does not expect the coronavirus to have a lasting negative impact on economic growth. Their economic outlook was upbeat and cited several factors that support growth, which led to the RBNZ forecasting a rate hike in 2021.
AUDUSD climbed on the back of the improved risk tone, rising from 0.6713 to 0.6746. Price gains could accelerate on a decisive break of resistance in the 0.6770 zone.
There are not any top-tier economic data releases from Canada or the US. Canadian dollar direction will continue to be driven by oil price moves and risk sentiment.
Today’s Suggested Range USD/CAD: 1.3240 – 1.3340
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By KBFX | February 12, 2020 | Daily Update | 0 comments