<img src="https://certify.alexametrics.com/atrk.gif?account=HSBGm1akGFL1WR" style="display:none" height="1" width="1" alt="">

Canadian dollar update – Tuesday July 28, 2020. Greenback dances two-step.

Canadian dollar update – Tuesday July 28, 2020. Greenback dances two-step.
Arif Harji
by Arif Harji on July 28, 2020


FX & market recap:

Asia equities closed modestly lower, European bourses turned small gains to losses, and US equity futures reversed earlier gains and are in negative territory, in early NY trading. The US dollar was a tad “bouncy” overnight. The commodity bloc currencies rallied in Asia then retreated in Europe. FX traders were cautious ahead of the US stimulus debate, and Wednesday’s FOMC meeting. Traders continue to be concerned about high levels of new US coronavirus cases, but hopeful for a vaccine. A dearth of top tier economic data exacerbated choppy, range bound markets. Today’s US economic calendar is light. Consumer Confidence and Case-Schiller Home price reports are on tap.

Canadian dollar highlights:

USD/CAD followed the lead of the Antipodean currencies. Prices bottomed out at 1.3334 then bounced to 1.3380. Recent Commitment of Traders data suggests speculators are still long USD/CAD. A break below support at 1.3330 could get exciting, although the move if it happens, won’t have anything to do with domestic influences.

Euro highlights:

EUR/USD traded steady with a firm bias to start the Asia session, but profit-taking on the back of the US stimulus news drove prices from 1.1773 to 1.1700 just before NY opened. The recent rally stalled below long term Fibonacci resistance at 1.1815 (61.8% of 2018-2020 range. The momentum indicators continue to warn that the single currency is overbought.

British pound highlights:

GBP/USD is steady just below the overnight peak of 1.2903, supported by EUR/GBP selling while ignoring EU/UK trade talk concerns.

Asia Pacific highlights:

USD/JPY is bearish after breaking key support levels at 106.05 and 105.50 earlier. Prices are trading at 105.16, the overnight low, undermined by geopolitical risk, and weak US treasury yields. China announced they were suspending mutual assistance agreements on criminal matters with Canada, New Zealand, and the UK.


Canadian dollar update – Thursday August 6, 2020. US dollar opens flat ahead of tomorrow's non farm payrolls.

Canadian dollar update – Thursday...

Canadian dollar update – Wednesday August 5, 2020. Gold soars, greenback sinks.

Canadian dollar update – Wednesday...