Canadian Dollar Update September 11, 2019 – Canadian Dollar consolidating gains
USD/CAD Open: 1.3152-1.3153 Overnight Range: 1.3139-1.3170
Oil is at $57.58 and gold is at $1,500.00. US markets are higher today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3177. Support is at 1.3138.
The Canadian dollar is consolidating its recent gains. Last week’s robust employment report may have reduced the incentive for the Bank of Canada to trim interest rates at its October meeting which underpinned the currency. Overnight, China announced it was exempting more than a dozen US imports from tariffs. The move suggests the somewhat frosty trade negotiations have started to thaw, and the so-called “riskier assets” were in demand.
AUDUSD jumped on the tariff news, but the rally stalled at resistance in the 0.6850 area. Another weaker than expected Business Confidence report also undermined the currency. However, the September uptrend is still intact. NZDUSD tracked AUDUSD moves.
USDJPY is trading in Toronto just below its overnight peak. Prices are supported by the rebound in US Treasury yields and the steepening of the yield curve.
EURUSD inched higher in Asia but reversed course when Europe opened. Prices dropped from 1.1054 to 1.0998 in early Toronto trading as EURUSD bulls get spooked ahead of tomorrow’s European Central Bank meeting. The ECB is widely expected to announce a new stimulus package which could be more aggressive than originally anticipated. The drop below 1.1020 risks further losses to 1.0875. A modicum of EURCAD selling has supported the Canadian dollar.
GBPUSD drifted in a narrow range with traders awaiting the next Brexit shoe to drop. The risk of a “no-deal Brexit” continues to cap gains.
Today’s US and Canadian economic data will not have an impact on FX trading.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
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By KBFX | September 11, 2019 | Daily Update | 0 comments