GBP got support after BoE's report
Bank of England Governor Andrew Bailey delivered a speech today. Let’s discuss what it means for a trader.
USD/CAD: massive sell-off
Information is not investment advice
The pair slumped to levels unseen since January. What’s next?
Fundamentals
The most obvious reason why USD/CAD has dropped so much is the weak US dollar. The uncertainty over the next US fiscal stimulus package, decreasing US Treasury bond yields and the current risk-on sentiment weighed on the greenback. What’s interesting is that even the recent resignation of Canadian Finance Minister Bill Morneau didn’t have any impact on the loonie.
Pay closer attention on two significant economic releases on Wednesday: the OPEC meeting and FOMC meeting minutes. They may add some volatility to the Canadian dollar. OPEC members will discuss further cuts of the oil supply. In fact, Canada is one of the largest oil producers in the world. Therefore, any changes in the oil market will influence the loonie. Moreover, the Fed will unveil the detailed report of its last meeting the same day on the evening. Analysts anticipate that the Fed’s dovish tone may push the USD down even more.
Technical tips
On the daily USD/CAD chart we can notice that the pair has entered the descending channel. If it slumps below the support level at 1.311, which it has touched several times, it may drop deeper to the low levels of January at 1.3035. On the flip side, if it jumps above the high of August 6 at 1.3320, it may surge to the high of the end of July at 1.3415.
Follow OPEC meeting and FOMC meeting minutes on Wednesday!
Kseniya Medik
Similar
NZD surged to highs of 2019
The New Zealand dollar is rising for the sixth straight day, outperforming its major peers. What is the reason? Let’s find out!
Goldman Sachs forecasts oil deficit
Oil keeps rallying for the fourth day in a row after Goldman Sachs claimed that the oil market is in deficit and also because of the recent storm in the Gulf of Mexico, which led to the sharp decline of oil production. It is the best week for oil since June!
Popular
Cable Extends Fall to Fresh Two-Month Low
UK's Raab supports that virus restrictions are serious, proportionate
USD/JPY Tries to Stay Below the 100-hour MA
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.
GBP got support after BoE's report
Bank of England Governor Andrew Bailey delivered a speech today. Let’s discuss what it means for a trader.
Choose your payment system
