WTI Crude pressuring the Loonie
Gary Christie October 27, 2020 4:27 AM
USD/CAD posting a strong rebound, traders watching key resistance.
The US Dollar was bullish against all of its major pairs on Monday. On the US economic data front, New Home Sales unexpectedly fell to 959K on month in September (1,025K expected), from a revised 994K in August.
On Tuesday, Durable Goods Orders for the September preliminary reading are expected to rise 0.5% on month, in line with the August final reading. Finally, the Conference Board's Consumer Confidence Index for October is expected to increase to 102.0 on month, from 101.8 in September.
The Euro was bearish against most of its major pairs with the exception of the CAD. In Europe, Germany's IFO Business Climate Index for October was released at 92.7 (vs 93.0 expected) and Expectations Index at 95.0 (vs 96.5 expected).
The Australian dollar was bearish against most of its major pairs with the exception of the CAD, CHF and EUR.
The USD/CAD gained 76 pips in Monday's trading making it the best performing major pair as equity markets slid over 2%. Despite Monday's strong rebound, the longer term trend remains bearish below key resistance at 1.3265. Key support can be seen at 1.30 and remains our downside target. The bank of Canada's rate decision is on Wednesday.
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.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.
StoneX Financial 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.