- USD / CAD has been swinging on both sides of the 1.2500 level, and the Canadian dollar is underperforming in the G10.
- The poor performance is attributed to concerns over diplomatic relations between China and Canada.
The USD / CAD It has been swinging on both sides of the 1.2500 level on Monday and is currently around 1.2510, up a modest 10 pips or 0.1% on the day. That means the loonie is one of the worst performing currencies of the day, along with the U.S. dollar; most of the other big G10 companies are doing much better than the dollar. 1.2550 appears to be the area that the pair is struggling to overcome and should be noted as resistance.
Performance of the day
The loonie is one of the worst performing currencies in the G10 on Monday. The reason is not very clear, after all, risk assets generally perform well (global equities and crude oil markets are doing well to say the least) backed by a drop in US bond yields. US government, with the 10-year yield now comfortably back below the 1.70% level – this would normally have a positive impact on the loonie.
Some market commentators are suggesting that nerves around Canada-China diplomatic relations could be a factor. As for the latest on that front, Canada is joining forces with the United States, the United Kingdom, and the EU to impose a series of sanctions on China for its treatment of Uighur Muslims in Xinjian; specifically, Canada will impose sanctions on four Chinese officials and one entity for human rights violations. Canada’s Foreign Ministry has also said publicly that the country is deeply concerned about the lack of transparency in a Chinese audience of two Canadian men detained there.
USD / CAD will be volatile as a result of key inbound risk events on both sides of the US-Canada border this week; In the US, a lot of comments from the Fed, the release of the preliminary US PMI Markit survey for this month on Wednesday and the release of the underlying PCE data on Friday will keep traders busy. dollar traders. In the meantime, Canadian dollar traders should watch out for comments from BoC Lieutenant Governor Toni Gravelle on Tuesday.
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.
