USDCAD, H1
Ahead of the US Q2 GDP data at 12:30 GMT, the Greenback has recovered, as the Loonie slips despite Oil strength. USDCAD dropped to its lowest level since June 6 in making a low at 1.2887, driven by a Globe & Mail report – which broke during the Tokyo morning – that Canada is ready to make significant concessions on diary to secure a trade deal with NAFTA. This is potentially good news as it raises the chances for Congress to approve the White House agreement with Mexico in the context of a revamped NAFTA deal. Meanwhile, both the Dollar and the Yen have traded firmer today against most other currencies, while the Pound outperformed all, benefiting from EURGBP long trimming amid reports that the UK and the EU have agreed to push back the deadline for Brexit negotiations by one month to mid-November. EURGBP broke a run of five consecutive up days, falling today to a two-day low of 0.9047, keeping large option barriers at 0.9100 out of reach. The Cable lifted to around the 1.2900 mark, but remained comfortably below yesterday’s one-week peak at 1.2932. Elsewhere, EURUSD posted a 1.1662 low while USDJPY continued to ply a narrow range in the lower 111.0s, which continues a phase of tight consolidating price action for a fourth consecutive session. The Turkish Lira took a fresh hit after Moody’s downgraded 20 of Turkey’s financial institutions. USDTRY rose nearly 2% to levels above 6.4000 for the first time since August 15.
USDCAD broke over its 20-period Moving Average at 10:00, running to the daily pivot point at 1.2933 where it found some resistance. The breach of this level lifted the pair towards 1.2950 and the top of the Bollinger Band. Daily R1 now sits at 1.2980 and S1 below yesterday’s low at 1.2884. The pair remains positive ahead of the North American data today.
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Stuart Cowell
Head Market Analyst
HotForex
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