CAD takes spotlight on refinery issues

30 August, 2017

CAD takes spotlight on refinery issues

The woes in America continue to dominate global trading headlines, as the hurricane has been now downgraded to a tropical storm. Obviously this is good news for the affected people, but markets have been quick to jump in on the action and none more so than oil markets at present. With the storm causing refineries to close it's likely we will see a build in oil surpluses and in private and public data due out this week, and the week following after. One of the major benefactors of this however has been the USDCAD with its strong relationship with oil markets. Obviously, also the Canadian economy has been somewhat positive but its relationship the USD has been very weak with fears of NAFTA and the tariffs that could be imposed on the Canadian economy.  

The USDCAD has jumped on today's news and pushed up to resistance at 1.2553 and has paused. With the storm currently subsiding it's likely the USDCAD may pause here or even let the bears back into the market, if that is the case then I would be watching for a very solid head and shoulders pattern to form and the continuation of bearish markets. In the event that it did continue lower support could be found at 1.2429. If the bulls do take hold I would be quite cautious how much movement they've got as the next level of resistance is found at 1.2757 and the 50 day moving average is trending lower and is likely to intersect putting pressure on any bullish movements. Either way CAD traders are likely to see some serious volatility over the coming 24 hours as the storm subsides and as oil data has the potential to cause havoc on the markets.

Gold markets continue to experience a major amount of volatility at present as it swung 20 dollars today. Yesterday saw a strong jump for the bulls as traders struck on a slow day, but with the storm letting up the bears have swung back into the markets. Tomorrow will be  strong day for gold trading as US GDP data will be out, and it's expected to show a slight rise to 2.7%, if we do see negative data then I would expect to see the bulls to take control and lead the market higher. If the data is positive expect to see it swing lower.

In the event it does swing lower then I would be targeting the key level at 1295 which is likely to be a very hard level to push through. At the same time the 20 day moving average is also a key level of support as can be seen above, and I would expect to hold, especially if combined with the 1295 level. In the event we do get to push higher, then 1313 and 1338 are likely to be important targets for traders and I would only expect to see a higher jump on weaker US GDP data in the next 24 hours. 


Source link  
Risk appetite returns as shutdown ends

The rally in Asian equities resumed on Tuesday taking the lead from Wall Street after U.S. government shutdown came to an end on Monday. Although...

Global equities hit by bearish pressure

Global markets took a sharp U-turn as the markets were in turmoil on the back of large crypto currency sell offs caused by regulation fears and a crackdown...

Dollar stabilizes after four days slide

The greenback’s sell-off paused early Tuesday after touching its weakest level since January 2015. Traders have been selling the buck across the board...


US equities hit another record high

The US markets have continued their hectic pace this year as the S&P 500 reached new highs on the back of economic figures. These figures showed...

Fixed income markets to dominate FX

The outstanding performance for equities which sent many major indices to record highs may have just paused. Asian stocks were trading broadly lower...

How longer the tired bull will keep running?

Led by Wall Street, global equity markets continued to enjoy one of their best starts in eight years. The Japan’s Nikkei 225 marched to a new 26-year high...


Critical week for dollar after a fragile start

After having the worst annual performance since 2003, the dollar continued to struggle in the first trading week of 2018. The dollar index fell to...

Robust economic growth

Equity investors across the globe are finding no reasons to take profits after an excellent performance in 2017. Asian stocks are trading at record highs after...

FOMC minutes - Will dollar bulls attack?

Investors kicked off 2018 on a positive note sending U.S. stocks to fresh highs on the first trading day. The optimistic approach on day one was...

  


Share: