USDCAD posts a major rebound amid Crude selloff
Gary Christie September 9, 2020 3:27 AM
Crude drops over 7% putting pressure on the Loonie: Chart
The US Dollar was bullish against most of its major pairs on Tuesday with the exception of the JPY. On the US economic data front, no major economic data was released.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending September 4th is expected. Finally, US Job Openings for July are expected to increase to 6,000 on month, from 5,889 in June.
The Euro was bullish against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, the European Commission has reported final readings of 2Q GDP at -11.8% (vs -12.1% on quarter expected). The German Federal Statistical Office has posted July trade balance at 19.2 billion euros surplus (vs 16 billion euros surplus expected). France's INSEE has released July trade balance at 6.99 billion euros deficit, vs 4.8 billion euros deficit expected.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD, CAD and GBP.
USD/CAD was the largest gainer on the day after jumping 127 pips to 1.3225 after WTI Crude prices tumbled $2.86 (-7.19%) to $36.91 in Tuesday's trading. Looking at the chart, an important breakout might be taking place.
Support has been identified at the 1.3035 area. The pair is attempting to break above a long term bearish channel in place since March after breaking above its 20-day moving average (in red). As long as price action remains above the bearish trend line, look towards the 50-day moving average as a target near the 1.3505 level which could signal the start of a major rebound to the upside.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.