Canadian Dollar Update September 23, 2019 – Canadian Dollar weighed down by oil
USD/CAD Open: 1.3258-1.3259 Overnight Range: 1.3258-1.3304
Oil is at $58.07 and gold is at $1,530.60. US markets are lower today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3288. Support is at 1.3247.
The Canadian dollar is being weighed down by falling oil prices. West Texas Intermediate (WTI), the North American benchmark price for crude oil continued to retrace gains made following last week’s attack on Saudi Arabia oil fields. Last Friday, Saudi official claimed 50% of the lost production was restored, and today said it would have full production by next week.
Today’s European FX session was lively thanks to flash Purchasing Manager Index data from France, Germany, and the Eurozone. German Markit Services PMI dropped to 41.4% from 43.5% in August. Eurozone Manufacturing PMI fell to 45.6 from 47.0%. EURUSD declined to 1.0967 from 1.1024. That move triggered Canadian dollar selling due to broad US dollar demand.
The British pound is a tad less perky than it was last Friday. GBPUSD slipped to 1.2424 from 1.2578 on Friday due to a combination of Brexit woes. UK Travel company Thomas Cook collapsed, stranding 150,000 British travelers, which is just another negative to add to the GBPUSD sentiment ledger. UK Labour Party discord and various reports of no progress being made with resolving the Irish border issue raised fears that Britain was running out of time to avoid a no-deal Brexit on October 31st.
The most recent round of US/China trade talks ended on Friday with both sides admitting the talks were “constructive.” However, traders were not convinced after President Trump said he did not want a “partial deal” and after the Chinese delegation cancelled a scheduled trip to some Montana farms.
The Australian and New Zealand dollars saw some demand at the Asia open due to the China/US trade talks, but the rally was short-lived. Prices peaked in the Asia afternoon and dropped steadily until finding a bottom in Europe. AUDUSD traders will hoping to get some currency direction guidance from tomorrow’s speech by Reserve Bank of Australia Governor Lowe.
There isn’t much in the way of actionable FX data available today.
Today’s Suggested Range USD/CAD: 1.3210 – 1.3310
By Admin | September 23, 2019 | Daily Update |
0 comments