USD/CAD Daily Price Forecast – Loonie Continues To Gain Momentum Over Spike In Crude Oil Price

Bullish run in oil prices supports Loonie on its positive price action as investors await BOC MPC update & Fed Meeting minutes.
Colin First

USDCAD pair is trading in red for sixth consecutive trading session today underpinned by increased risk on trading activity in global markets and bounce in crude oil price. The pair hit fresh one month lows today as Loonie gained momentum owing to crude oil price breaching $50 per barrel. Equity and forex markets are seeing positive price action since trading session opened for the week on optimism surrounding Sino-U.S trade talks and while the talk between two parties went longer than expected, it concluded on positive note earlier today with both parties having found some common ground despite key issues remaining unresolved. Crude oil gained sharply today on positive headlines relating to China & U.S trade talks.

BOC MPC Update & Fed Meeting Minutes Are Main Focus Of Investors

While global over production and glut scenario played a major role in crude oil price decline, China-U.S. trade war also played a major role as it caused economic slowdown across globe and news of progress is viewed as positive sign for economic growth and crude oil demand in global markets. Both spot and futures markets gained by 2% today with spot price of US crude oil moving back above $50 per barrel which provided great deal of fundamental support to crude oil linked currency – Canadian Loonie. As of writing this article, USDCAD pair is trading at 1.3237 down by 0.06% on the day. While US dollar recovered yesterday supported by pick up in US Treasury Yields, ongoing political issues in USA and partial government shutdown continues to weigh down Greenback in broad market which adds positive influence to Loonie bulls.

On release front today, both Canadian and US calendar have a busy schedule. US calendar sees the release of EIA crude oil inventory data which is forecast to see draw in inventory stockpile data and latest FOMC meeting minutes. A draw in crude inventory is positive for crude oil price as it suggests increased sales and less production of crude oil. Meanwhile Canadian calendar will see release of Bank of Canada’s monetary policy report and interest rate decision which is expected to remain unchanged. Reaction of traders post BOC MPC update will decide the pair’s near term future as a rebound in USD now would be supported by positive updates relating to Sino-U.S trade talk proceedings which will erase most of Loonie’s gains. Immediate support and resistance for the pair are at 1.3200, 1.3160 and 1.3280, 1.3300 price levels respectively.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US