USDCAD, Oil & Gold
The Dollar has been trading steadily so far today after yesterday rebounding quite sharply from 33-month lows. This has come amid a backdrop of sputtering stock markets, with narratives ascribing today’s two runoff elections in Georgia, which have existential implications for the incoming Biden administration (as the result will decide whether Democrats or Republicans will control the Senate), alongside the constant rise in positive Covid tests and associated restrictions, as providing excuses for markets to correct.
The USDIndex has settled above the trend low seen yesterday at 89.42. EURUSD has concurrently settled lower, in the mid-to-upper 1.2200s, after yesterday foraying above 1.2300. USDJPY has settled around 103.0, and the Pound ebbed modestly lower as market participants continue to digest the UK-EU deal. The Aussie and Kiwi Dollars are showing gains over 0.5%, but remain below their respective highs from yesterday.
The Canadian Dollar, meanwhile, recouped some of the ground it lost yesterday during a sharp drop in oil prices. Oil prices steadied today after yesterday seeing a sharp correction after posting 11-month highs, which in our view shouldn’t have been too surprising, what with the demand destruction being caused by the increasing Covid lockdown measures being taken in Europe and other major northern hemisphere nations, alongside increasing supply from both OPEC and non-OPEC producers, and with crude prices having already returned to pre-pandemic levels. USOil lifted back above $48.00 to $48.50 after tumbling by just over 5% from yesterday’s high at $49.80, just shy of the key $50.00. USDCAD rebounded by over a big figure from the 33-month low the pair saw yesterday, at 1.2664, though has since dropped back around the 1.2750 area. Bitcoin has settled after whippy price action yesterday, and remains over 8% down on its record high, as GOLD tests $1950.00, an area last visited November 9th, the day the yellow metal lost over 7%.
Click here to access the HotForex Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
