The Canadian dollar (CAD) maintains a firm tone against a US dollar (USD) generally weaker. The return of the CAD from the outbreak of hostilities between Israel and Iran last week is quite mediocre among the main currencies, the Scotinal Chief Strategies of Scotiabank, Shaun Osborne and Eric Theoret point out.
Little possibility of corrections against the trend
“The Nok and the MXN are relatively better in that period of time, but the CAD has not really benefited from the increase in the crude oil prices. Petroleum consumers (JPY) have had a somewhat lower performance, but the situation reflects the quite weak relationship that CAD (and the currencies of the G10) generally have with crude oil trends. The measured and mobile correlation of 1 month between CAD and WTI is –17% (graph) and is worse in a shorter study of 10 mobile days (-38%). “
“A significant interruption of the Iranian supply or a situation that compromises the traffic of tank in the region (narrow ormuz) could cause a stronger and perhaps more sustained increase in the oil Give an additional impulse to CAD.
“The spot is negotiated in a new marginal minimum for the downward movement this morning, barely below the minimum of Friday. The broader downward trend in the funds remains intact and deeply rooted in the graphics. The trend momentum signs are aligned bassists for the USD in intradic, newspaper and weekly studies, which implies continuous pressure on the decline over the USD Possibility of corrections against the trend.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
