While the NAFTA talks continue in Washington, the Canadian dollar remains basically unchanged, the only piece of Canadian economic data is tomorrow’s housing starts, do not expect much of a difference. The big movement in currencies today is the euro and sterling, both moved higher against the dollar on Monday after the European Union’s top negotiator said an agreement for Britain to leave the economic bloc might be reached in the coming weeks.
Support Resistance
USDCAD 1.3155, 1.3143, 1.3138 1.3172, 1.3180, 1.3188
USDCAD 1.3155, 1.3143, 1.3138 1.3172, 1.3180, 1.3188
[EUR, USD]
EUR-USD rallied out of a three-week low at 1.1526 that was seen in early London trading to the upper 1.1500s. The gains were driven mostly by a broad bid in the Euro, which in turn was underpinned by a rally in Italian assets on welcome signs of budgetary prudence on the part of the Italian government. The biggest gainer out of the Euro crosses has been EUR-CHF, which is up by over 0.5%. EUR-USD still remains below the levels around 1.1615-20 that were prevailing ahead of Friday’s U.S. jobs report release, the strength of which firmed up odds for a December rate hike from the Fed, in addition to already fully-expected hike this month. In the bigger view, EUR-USD remains amid an overall bear trend, one that’s been unfolding since mid April. Incoming U.S. data, like Friday’s jobs report, should continue to firm-up expectations for a 25 bp Fed hike in December, which would follow an already fully-anticipated 25 bp hike in September. We would also expect the Dollar to appreciate in the scenario of sustained risk aversion in global markets. EUR-USD has resistance at 1.1621-23.
[EUR, USD]
EUR-USD rallied out of a three-week low at 1.1526 that was seen in early London trading to the upper 1.1500s. The gains were driven mostly by a broad bid in the Euro, which in turn was underpinned by a rally in Italian assets on welcome signs of budgetary prudence on the part of the Italian government. The biggest gainer out of the Euro crosses has been EUR-CHF, which is up by over 0.5%. EUR-USD still remains below the levels around 1.1615-20 that were prevailing ahead of Friday’s U.S. jobs report release, the strength of which firmed up odds for a December rate hike from the Fed, in addition to already fully-expected hike this month. In the bigger view, EUR-USD remains amid an overall bear trend, one that’s been unfolding since mid April. Incoming U.S. data, like Friday’s jobs report, should continue to firm-up expectations for a 25 bp Fed hike in December, which would follow an already fully-anticipated 25 bp hike in September. We would also expect the Dollar to appreciate in the scenario of sustained risk aversion in global markets. EUR-USD has resistance at 1.1621-23.
[USD, CAD]
USD-CAD has made fresh highs near 1.3200, remaining buoyant in the wake of the release of contrasting U.S. and Canada jobs reports, where the former was better than expected and the latter missing the mark. NAFTA uncertainty, choppy oil prices, and risk-off conditions have kept the pairing very choppy of late. USD-CAD has resistance at 1.3226-28 and support at 1.3137-40.
Previous
