It’s a quiet day ahead on the economic calendar. There are no material stats to consider, leaving geopolitics and COVID-19 and vaccine news in focus
USD/CAD declined below the support at 1.2525 and is testing the next support level at 1.2500.
Economic data from China failed to impress this morning. Later today, finalized inflation figures from the Eurozone and consumer sentiment figures from the U.S will be in focus.
TORONTO (Reuters) -The Canadian dollar edged lower against its U.S. counterpart on Thursday as domestic data showed a bigger-than-expected drop in factory sales and investors weighed restrictions on the economy, with the loonie pulling back from an earlier three-week high. The loonie was trading 0.2% lower at 1.2543 to the greenback, or 79.73 U.S. cents, the weakest performance among G10 currencies. The manufacturing data "may have just helped USD-CAD avoid going sub-1.25 and staying there for the remainder of the session," said Amo Sahota, director at Klarity FX in San Francisco.
Eurozone inflation figures and a busy U.S economic calendar put the EUR and the U.S Dollar in focus later today.
The Canadian dollar edged higher against its U.S. counterpart on Wednesday as oil, one of Canada's major exports, rallied and ahead of a Bank of Canada policy meeting next week that could see the central bank cut its bond purchases. "It looks like we are getting the benefit of a weakening U.S. dollar and a strengthening oil price," said Colin Cieszynski, chief market strategist at SIA Wealth Management. The U.S. dollar lost ground against a basket of major currencies, while oil surged after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand.
The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil rose and the greenback broadly declined, with the loonie rebounding from an earlier six-day low. The U.S. dollar fell against a basket of major currencies after data showed inflation making strong gains in March, though the rise was not expected to alter the Federal Reserve's commitment to keeping interest rates at rock-bottom levels for years to come. "It is more about greenback weakness as opposed to loonie strength," said Erik Nelson, a currency strategist at Wells Fargo.
USD/CAD gained downside momentum after an unsuccessful test of the resistance at 1.2625.
A blowout jobs report in March gave the Canadian dollar a boost, which is seeing bullish interest from traders. ETF investors can angle this play via the Invesco CurrencyShares Canadian Dollar Trust (FXC). Getting currency exposure via a ETF wrapper could help mute downturns when U.S. markets start to experience wild swings, especially in the [...]
It’s a busier day ahead on the economic calendar after some key stats from the Asian session. The EUR, the GBP and the Greenback will be in focus later today.