- USD/CAD is struggling around the immediate 1.3340 hurdle in the absence of a potential trigger.
- The market mood has calmed down as the US economy celebrates Thanksgiving Day.
- A drop in oil prices driven by rising Covid-19 infections in China impacted the Canadian dollar.
USD/CAD is showing upside down moves just like another typical Friday session. Asset Lonnie is struggling around 1.3340 after seeing a rally below 1.3320. A bullish reversal cannot yet be claimed as it goes through various filters. There is no doubt that trading activity is weak due to Thanksgiving Day, but the market mood is still strong.
The USD Index (DXY) is auctioning off like a dead cat amid the unavailability of any potential upcoming triggers due to the light economic calendar. However, the hangover from less hawkish comments from the Federal Open Market Committee (FOMC) minutes will continue to impact the US Dollar. Meanwhile, 10-year US Treasury yields fell below 3.69%.
Long-term US yields are likely to remain on edge as the Federal Reserve (Fed) is expected to shift to a lower interest rate hike for its December monetary policy meeting. Comments from Fed policymakers according to the FOMC minutes indicate that financial risks in the US economy are accelerating, driven by extreme policy tightening.
Therefore, a slower pace of rate hikes would reduce these risks and also provide an opportunity to observe the impact of the Fed’s efforts to ease inflationary pressures.
On the Canadian dollar front, investors are awaiting the release of gross domestic product (GDP) for the third quarter, which will be released on Tuesday. On a quarterly basis, the GDP data is expected to decline to 0.4% from the previous release of 0.8%. This could be good news for the Bank of Canada (BOC) as a slowing economy is needed to calm ultra-hot inflation.
Meanwhile, Oil prices stabilized around the critical $78.00 hurdle after falling perpendicularly. This does not present a reversal situation but a stock breakdown that could lead to further weakness. Rising Covid-19 infections in China have led to a significant drop in economic projections. It should be noted that Canada is one of the main exporters of oil to the United States and a drop in oil prices has an impact on the Canadian dollar.
- USD/CAD is struggling around the immediate 1.3340 hurdle in the absence of a potential trigger.
- The market mood has calmed down as the US economy celebrates Thanksgiving Day.
- A drop in oil prices driven by rising Covid-19 infections in China impacted the Canadian dollar.
USD/CAD is showing upside down moves just like another typical Friday session. Asset Lonnie is struggling around 1.3340 after seeing a rally below 1.3320. A bullish reversal cannot yet be claimed as it goes through various filters. There is no doubt that trading activity is weak due to Thanksgiving Day, but the market mood is still strong.
The USD Index (DXY) is auctioning off like a dead cat amid the unavailability of any potential upcoming triggers due to the light economic calendar. However, the hangover from less hawkish comments from the Federal Open Market Committee (FOMC) minutes will continue to impact the US Dollar. Meanwhile, 10-year US Treasury yields fell below 3.69%.
Long-term US yields are likely to remain on edge as the Federal Reserve (Fed) is expected to shift to a lower interest rate hike for its December monetary policy meeting. Comments from Fed policymakers according to the FOMC minutes indicate that financial risks in the US economy are accelerating, driven by extreme policy tightening.
Therefore, a slower pace of rate hikes would reduce these risks and also provide an opportunity to observe the impact of the Fed’s efforts to ease inflationary pressures.
On the Canadian dollar front, investors are awaiting the release of gross domestic product (GDP) for the third quarter, which will be released on Tuesday. On a quarterly basis, the GDP data is expected to decline to 0.4% from the previous release of 0.8%. This could be good news for the Bank of Canada (BOC) as a slowing economy is needed to calm ultra-hot inflation.
Meanwhile, Oil prices stabilized around the critical $78.00 hurdle after falling perpendicularly. This does not present a reversal situation but a stock breakdown that could lead to further weakness. Rising Covid-19 infections in China have led to a significant drop in economic projections. It should be noted that Canada is one of the main exporters of oil to the United States and a drop in oil prices has an impact on the Canadian dollar.