USDCAD spot rate: 1.3319 - 1.3324 (as at 8:08am PST)
Technical Support / Resistance:
Key Economic Data Releases:
- Canada housing starts: 213.2k (exp 210k / prev 195.9k)
- Canada buildings permits: 7.4% (exp 0.6% / prev -3.5%)
BOC Poloz speech
Retail sales, industrial production
The USD/CAD pair finally broke down of its European session consolidation phase and jumped to four-month tops, around the 1.3325-30 region in the last hour. Following an early dip to sub-1.3300 levels, the pair managed to attract some dip-buying interest and turned higher for the fourth consecutive session, also marking its 8th day of a positive move in the previous nine. As investors looked past Friday's upbeat Canadian monthly employment details, a softer tone surrounding crude oil prices undermined the commodity-linked currency -the loonie- and helped regain positive traction. Oil extended its recent bearish trajectory and remained depressed amid concerns over the hit in demand from the world's largest importer, China, following the outbreak of the deadly coronavirus. It is worth reporting that oil recorded its 5th consecutive week of losses, which has resulted in combined losses of more than 22% and points to a well-established near-term bearish trend. Meanwhile, the momentum seemed rather unaffected by a subdued USD price action, which possibilities of some follow-through technical buying above the 1.3300 mark contributing to the positive tone. In absence of any major market-moving economic releases, the pair seems more likely to continue with its appreciating move as the focus now shifts to the Fed Chair Jerome Powell's testimony on Tuesday. Currently, the TSX is up 0.28% and the DJIA is up 0.34%. EURCAD is down 0.13% trading between 1.4539 and 1.4584. GBPCAD is up 0.30% trading between 1.7114 and 1.7248. JPYCAD is up 0.74% trading between 0.01209 and 0.01214. Gold is up 0.31% trading between $1,567 and $1,576USD/oz. Silver is up 0.06% trading between $17.67 and $17.82. Oil (WTI crude) is down 0.19% trading between $49.73 and $50.30.