USD/CAD - Canadian Dollar Riding Another Rollercoaster

The Canadian dollar rallied overnight, but the rally ran out of gas in early European trading and prices retreated. Canadian dollar direction is determined by broad U.S. dollar sentiment, and that sentiment has continuously shifted between bullish and bearish all session. Asia markets were in a "risk-on" mode overnight. The major equity index closed with gains, led by a 2.05% gain in Japan’s Nikkei 225. Oil prices firmed, and gold prices dropped. The New Zealand and Australian dollars tied as the best performing currencies overnight, rising 0.88%. New Zealand Finance Minister Grant Robertson caught markets off-guard when he added Housing Prices to the Reserve Bank of New Zealand’s mandate, as a factor to consider when formulating monetary policy. FX traders immediately determined that the move took negative interest rates off the table and NZD/USD soared, rising from $0.6920 to $0.7003 before easing slightly in Toronto trading. AUD/USD rallied alongside its Kiwi cousin, rising from $0.7286 to $0.7356, fueled by risk-on sentiment when the White House said it would begin cooperating with President-elect Joe Biden’s transition team. FX markets continue to look past the latest COVID-19 outbreaks and are mildly risk positive due to hopes for a coronavirus vaccine. EUR/USD is trading in the middle of its $1.1839-1.1893 range. Traders ignored the German IFO Survey, which showed that Business Climate results were a touch higher than forecast. Gains were limited by the ongoing dispute about the Eurozone 2021-2027 budget, and dovish comments from European Central Bank officials. There will be plenty of central-bank-speak today. The International Monetary Fund is hosting a discussion about "New Policy Frameworks for a 'Lower-for-Longer' World". U.S. Federal Reserve Vice Chair Richard Clarida, ECB Chief Economist Philp Lane, and bank of Canada Senior Deputy Governor Carolyn Wilkins are panelists. Rahim Madhavji is the President of KnightsbridgeFX.com, a Canadian currency exchange that provides better rates than the banks to Canadians
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.