The Loonie is totally driven by crude oil as of this week
Monday 8 April, 2019
Daily Currency UpdateCAD - Canadian DollarThe Loonie weakened last Friday, representing an increase of 0.17 percent in the USD/CAD pair. However, this morning, it is all the opposite. The USD/CAD pair is falling by around 0.28 percent due to crude oil trading at new highs since November 5th. The acceleration of fighting in Libya has increased supply concerns (OR “has increased worries about supply”). Furthermore, we are probably going to have a fall in crude oil inventories that will impact OPEC's March output figure due next week because Venezuelan crude production fell by half to fewer than 600k barrels a day during last month's blackouts. The impasses can shake the global oil markets. According to data from the Commodity Future Trading Commission published last Friday, money managers positioned themselves with net-long crude oil bets for a sixth week.The USD/CAD pair is trading at 1.3340 at the time of this writing. Technically speaking, it has a support at 1.3323 and a resistance of 1.3360.
Key MoversOther than FX markets awaiting the European Central Bank’s monetary-policy decision on Wednesday morning, the Brexit will be an important mover. The Brexit deadline is this Friday, so either Brexit will happen, or it will be delayed. British Prime Minister Theresa May is hoping to re-start stalled talks with opposition leader Jeremy Corbyn as she continues to seek a compromise on a deal that she can present to EU leaders this week.The British Pound continues trading in a narrow range. Market participants continue sitting on their hands waiting for an outcome to the interminable chaos.The GBP/USD trades higher this morning at 1.3047, a 0.12 percent increase. We are probably going to have a support of 1.3013 and a resistance of 1.3089 for the rest of today's trading session.The EUR/CAD is trading at 1.5039, an increase of 0.23 percent, at the time of this writing. Despite the upside momentum in favor of the Euro, a support of 1.4995 and a resistance of 1.5075 are likely.
- USD/CAD: 1.3308 - 1.3350 ▼
- CAD/EUR: 0.6645 - 0.6715 ▼
- CAD/GBP: 0.5738 - 0.5760 ▲
- CAD/AUD: 1.0516 - 1.0561 ▲
- CAD/NZD: 1.1086 - 1.1135 ▲