CAD: All About Oil, And The US

0

Oil prices joined the sell-off in global markets, and this weighed on the C$, which had showed some strength until then. What’s next for the loonie? Here is the view from Credit Agricole:

Here is their view, courtesy of eFXnews:

The lack of significant data releases makes oil the Canadian Dollar’s main player this week, with US oil inventory data (Wednesday) to note given the previous week’s surge.

But the US outlook is increasingly relevant in light of growing concerns over an economic slowdown, which points to less demand for Canadian exports.

Such fears, most recently ignited by the weak ISM non-manufacturing figures and dovish rhetoric from Dudley, have contributed to the broad USD selloff of late, lifting commodity currencies in particular.

In the near-term, delayed Fed and on-hold BoC limits the scope for widening rate differentials, keeping CAD supported at current levels.

CAD Reversal in rate differentials

For lots more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.