USD/CAD rebounds from multi-month lows

5 July, 2019

A sharp pullback in Oil prices undermined Loonie and helped gain some positive traction. Fed rate cut bets kept the USD bulls on the defensive, albeit did little to hinder the uptick. Friday’s key focus will be on the closely watched monthly jobs report from the US and Canada.

The USD/CAD pair gained some positive traction on the last trading day of the week and recovered the previous session's downtick to 8-1/2 month lows.

The US Dollar remained on the defensive in the wake of firming market expectations that the Fed will eventually cut interest rates later in July, which was evident from the ongoing slide in the US Treasury bond yields to fresh multi-year lows. 

However, a sharp pullback in Crude Oil prices - now down over 1.25% for the day, undermined demand for the commodity-linked currency and turned out to be the only factor behind the pair's modest rebound from the lowest level since late-Oct. 2018.

Despite heightened geopolitical tensions in the Middle East due to the seizure of an Iranian oil tanker by British Royal Marines, Oil prices were weighed down by concerns over global economic growth and weakening demand amid persistent trade tensions.

The pair has now recovered further beyond mid-1.3000s and was further supported by some short-covering move ahead of Friday's key releases - the closely watched monthly jobs report from the US (NFP) and Canada, due later during the early North-American session.


Source link  
What will move Euro out of ECB rate decision?

This is the last policy announcement from the ECB before President Mario Draghi makes way for his replacement...

Gold drops to fresh session lows

Fails to capitalize on last week's goodish bounce, despite a subdued USD demand. A goodish bounce in US bond yields/risk-on mood prompts some fresh selling...

Gold to retest trend channel resistance

The precious metal's corrective slide on Friday, from near six month tops, stalled ahead of an important confluence resistance break-point now turned support...


Gold looks to $1210 ahead of US data

Stalled US dollar bounce combined with negative European equities, Treasury yields underpin. Volatile within $ 5 range ahead of the US core PCE data...

Gold and oil shorts covered

According to the CFTC Weekly Report (W/E July 10), as the WTI crude oil spiked toward $75/bbl amid fears of supply shortages and low spare capacity, which...

Global markets in a delicate spot

Analysts at Westpac, suggest that global markets remain in a delicate spot due to ongoing uncertainty of the US/China trade saga and growing geopolitical tensions...


Powell to stick to gradual path

Analysts at Deutsche Bank suggest that new Fed Chair Powell’s testimony is at 3pm GMT and he will be speaking on behalf of the FOMC...

GBP futures: bottomed out?

In light of advanced figures for GBP futures markets, open interest decreased by almost 5K contracts on Friday vs. Thursday's 209,855 contracts...

Strong market sentiment continues

Chief Analyst, Allan von Mehren at Danske Bank suggests that global market sentiment continues to be strong with further decent increases in stock...

  


Share it on:   or