Business & Investment

Baystreet.ca-USD / CAD-Canadian Dollar Recovers Some Losses



USD / CAD Open: 1.2738-42, Overnight Range: 1.2723-1.2773, Last Close: 1.2791

WTI oil is $ 70.99 and gold is $ 1,783.30. The US market is higher than it is today.

The resistance of the US dollar today is 1.2811. Support is 1.2766.

-Risk sentiment will be a little positive
-Fear from the ease of Omicron variants
-Commodity currency block rebound

The Canadian dollar is regaining losses following a plunge in coronavirus variants on Friday. Omicron is the name of the latest COVID-19 variant, which has reportedly closed its borders by authorities around the world due to its rapid mutation and easy infection.

The news is aimed at traders competing for the US dollar and bail out risk assets. The Dow Jones Industrial Average fell 905 points and the S & P 500 fell 2.27% at the closing price on Friday. Both of these indexes are profitable in pre-market trading, although they both have a lot of grounds to cover to make up for Friday’s blunder.

The European stock index is also trading higher, supported by a 5.0% rebound in oil prices and calm words from ECB officials.

USDCAD rebounded violently on Friday, but prices could not decisively exceed the long-term downtrend line that acted in the 1.2770-90 area where the session ended. USDCAD has a small gap in Asia and has been integrated into 1.2723-58 in Europe.

The direction of the Canadian dollar is determined by a wide range of US dollar sentiment. That is, today’s domestic data (raw materials and industrial production data) is ignored by traders.

Bank of Canada Governor is speaking today at the New Zealand Conference via video.

The Asian stock market closed in the red as Japan’s Nikkei Stock Average plummeted 1.64%. Japan has closed its borders for all international travelers. The UK’s FTSE 100 rose 1.20% and the European stock exchange recovered, despite European countries competing to enact a new travel ban. S & P 500 futures are expensive, but off the highest level. WTI’s oil prices are up 4.9%, but gold is rising moderately. The US 10-year government bond yield is 1.553%.

EURUSD traded in the range 1.1261 to 1.1312. ECB Governor Christine Lagarde appears to have been less gradual with the latest COVID-19 news, suggesting that the euro area is better equipped to manage variants of COVID-19. increase. Data on economic conditions and industrial confidence in the euro area have been ignored.

GBPUSD rebounded against the backdrop of improved risk sentiment, which rose from 1.3321 to 1.3362. However, the latest COVID-19 news in addition to French / UK immigrant spats and the reduced risk of the BoE raising interest rates in December are limiting profits.

Today’s US data is on the second tier, forcing Wall Street pricing behavior to drive the direction of Forex.

Today’s Recommendations USD / CAD: 1.2700 – 1.2800

Baystreet.ca-USD / CAD-Canadian Dollar Recovers Some Losses

http://www.baystreet.ca/articles/forex_trader.aspx?articleid=72380 Baystreet.ca-USD / CAD-Canadian Dollar Recovers Some Losses

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