Tuesday, December 10, 2019
Home > Posts > Canadian dollar strengthens as NAFTA negotiations restart

Canadian dollar strengthens as NAFTA negotiations restart

canadian money | EconAlerts

The Loonie strengthened yesterday, as Canada signaled that it was ready to make concessions towards the US in the NAFTA negotiations. According to media, Canada may be offering the US a limited access to Canada’s dairy market which could provide a breakthrough for an agreement. Negotiations are ongoing, as Canadian foreign minister returned to Washington and the parties are trying to reach a deal by October 1st. Should there be further headlines on the issue, we could see volatility rising for USD/CAD.

USD/CAD tumbled yesterday, breaking consecutively the 1.3100 (R2) and the 1.3070 (R1) support lines, now turned to resistance. The pair stabilised during the Asian session and we could see it moving in a sideways manner today although volatility could rise during the American session on further headlines about NAFTA. Should the pair be once again under the selling interest of the market, we could see it breaking the 1.3040 (S1) support line and aim for the 1.3005 (S2) support barrier. Should the market favor the pair’s long positions, we could see the pair breaking the 1.3070 (R1) resistance line and aim for the 1.3100 (R2) resistance hurdle.


usd/cad 12/09/2018 | EconAlerts

  • Support: 1.3040 (S1), 1.3005 (S2), 1.2965 (S3)
  • Resistance: 1.3070 (R1), 1.3100 (R2), 1.3135 (R3)

Oil prices up, due to worries about Iran and US output growth

Oil prices rose yesterday due to concerns in the oil market about the overall effect of the US sanctions on Iran and as a deadline for their activation is drawing near. Also, a report forecasting a slow-down of the US output growth rate intensified supply concerns. The rise of oil prices was marked by the simultaneous release of the API weekly crude oil inventories figure which marked a drawdown of -8.636 million barrels, far wider than expected. Official government data are due out today and could move the market along with any headlines about fundamental issues of the oil market.

WTI prices rose yesterday, breaking all the resistance lines we had and stabilised slightly above the 69.60 (S1) support line. The pair may prove sensitive to any further headlines today but also to the release of the EIA weekly crude oil inventories figure, later today. Should the market consider the figure as evidence of a tight oil market, prices of the black gold could rise even higher breaking the 70.40 (R1) resistance level. On the other hand, if the market sees a slack in the oil market we could see the commodity’s prices dropping, breaking the 69.60 (S1) support line and aim or even breach the 68.75 (S2) support zone.

WTI Cash 4H

wti oil 12/09/2018 | EconAlerts

  • Support: 69.60 (S1), 68.75 (S2), 67.75 (S3)
  • Resistance: 70.40 (R1), 71.35 (R2), 72.50 (R3)


In today’s economic highlights:

In a rather slow Wednesday, in the European session, we get the industrial production growth rate of the Eurozone for July and in the American session, we get the US PPI growth rate for August as well as the release of the EIA weekly crude oil inventories figure. As for speakers, please note that Sweden’s Riksbank Governor Stefan Ingves, St. Louis Fed President James Bullard (13:40 GMT) and Federal Reserve Board Governor Lael Brainard (16:45 GMT) speak. Also, we would like to give a small heads up for tomorrow’s ECB’s, BoE’s and interest rate decisions and the Central Bank of Turkey (CBT) interest rate decision which could create intense volatility for the Turkish Lira (TRY).


All trading involves risk. It is possible to lose all your capital


This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: FXGiants

Leave a Reply

Your email address will not be published. Required fields are marked *