Canadian Dollar Update, September 27, 2021 – Canadian Dollar Looking for a Catalyst
USD/CAD Open: 1.2656-59, Overnight Range: 1.2612-1.2665, Previous Close: 1.2651
WTI Oil is at USD$75.36 and gold is at USD$1,749.60. US markets are mixed today.
For today, USD resistance is at 1.2680. Support is at 1.2600.
• Unsettled German election weighs on EURUSD
• US Durable Goods orders expected to rise 0.7% m/m
• US dollar opens higher compared to Friday
The Canadian dollar is starting today’s session close to where it closed on Friday. Overnight markets were relatively uneventful.
Asia stock markets were mixed. The major Chinese indexes traded higher while Japan’s Nikkei 225 was flat. European bourses are posting small gains, and Wall Street futures are mixed to flat. Oil prices firmed, and gold prices slid.
Oil prices continued the rally that began on August 20 when West Texas Intermediate (WTI) found a bottom at $61.90/barrel. Prices touched $75.29/b overnight, an increase of over 21%. Oil prices are underpinned by the lingering disruption from Gulf of Mexico hurricanes, falling US crude inventories, and bullish Opec and International Energy Agency outlooks. Analysts at Goldman Sachs raised their 2021 WTI forecast to $85.00/b from $80.00/b. The prospect for higher oil prices is providing some support to the Canadian dollar.
EURUSD dropped from 1.1727 to 1.1686 due to uncertainty around the German election. Chancellor Angela Merkel retired and wasn’t part of the election.
Her party, led by Amin Latchet finished second to the Social Democratic Party (SDP) led by Olaf Scholz. Mr. Scholz is hoping to cobble together a coalition, and while those negotiations occur, EURUSD will trade with a negative bias.
GBPUSD rallied on the back of EURGBP selling, although gains were limited due to UK domestic issues. The UK is suffering from a fuel shortage due to a lack of truck drivers, which threatens to hamper the UK’s recovery.
Today’s Suggested Range USD/CAD: 1.2600 – 1.2700
By Admin | September 27, 2021 | Daily Update |
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