- USD / CAD falls after two days with rises and after approaching 1.2800.
- The loonie runs behind in the group of those linked to commodities.
He USD / CAD on Monday reversed trend after approaching 1.2800 and fell back to 1.2718 on Tuesday. It is trading at 1.2725 / 30, with a bearish bias due to a general decline in the dollar in the market, and a rise in the equity markets.
Stock markets in the world are rising and Wall Street futures point to an open with rises around 0.70% in the main indices. This optimism is weakening the dollar and favors the decline in the USD / CAD.
The loonie is rising against the dollar, but at a more moderate pace than the AUD and NZD. The rise in the price of oil does not help enough. The WTI climbs 0.90% and operates in the zone of $ 52.50.
The USD / CAD failed to break above 1.2800 and closed on Monday below the 20-day moving average that is passing by 1.2755. On the downside, the next strong support can be seen at 1.2690. A daily close above 1.2800 would point to more gains for the dollar.
Moved days ahead
In Canada November’s manufacturing and wholesale sales report will be released on Tuesday, which is not expected to have an impact on the market. What is relevant will come on Wednesday, a busy day, when the inflation reading for December will be known first. Then the key event of the week will arrive with the decision of the Bank of Canada (BoC) and the statement. No changes in interest rate are expected. Along with the decision, new framework economic projections will be known.
There was speculation at the time that the Bank of Canada could announce a minimal cut in the benchmark interest rate from 0.25% to 0.20 or 0.15%, but this is not the mostly expected scenario. However, even with no surprises in the rate announcement, the projections and the words of the BoC, hopefully they will move to the loonie crosses.
In EE.UU., With no key data Tuesday, the focus remains on politics. Janet Yellen She will appear before a Senate committee at the hearing that discusses her nomination for the position of Secretary of the Treasury. On Wednesday there will be the takeover of Joe Biden. That same day several announcements are expected, this time, already formal and signed.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
