Wednesday, September 9, 2015

USD/CAD breaks below 1.3200

FXStreet (Córdoba) - USD/CAD reversed at 1.3270 and turned again to the downside, with strength enough to break 1.3200. The pair bottomed at 1.3194, hitting the lowest level since last Friday ahead of tomorrow’s Bank of Canada decision.

USD weak versus commodity currencies

Equity prices in Wall Street are rising sharply on the back of a better tone in financial markets and hopes about more economic stimulus from China. Risk appetite also boosted commodity currencies that strengthened during the American session and reached fresh highs. Greenback still remains up for the day versus the Swiss franc and the yen.

“We remain bullish on USDCAD over the medium-term however, but the next major up-leg will require another policy catalyst either by the Fed or BoC. Our broader USD view is that it is difficult to be long within the G10 complex but there is still some value in remain long USD versus the commodity complex/current account deficit economies. Canada, Australia and New Zealand fit that bill”, wrote analysts from TD Securities.

Oil jumps, supporting the downside in USD/CAD

Crude oil prices initially pulled back after the begging of trading in Wall Street but then rebounded and rose back, breaking previous highs. Currently it strands around $46.25, around the same level it had on Friday. The recovery in crude prices helped the loonie in the market.
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