This website uses cookies. We use cookies to ensure that we give you the best experience on our website. Read More

Importnt trading day in Canadian dollar

22 Jan 2020 12:05 PM

The markets are awaiting many important economic events in Canada that will strongly affect the Canadian dollar's trading against most major currencies, starting with the release of consumer price data in the evening, which may stabilize at 1.9% below the average target set by the Bank of Canada this evening. Then comes the first Bank of Canada meeting in 2020, with expectations for the interest rates to remain unchanged at 1.75%.
However, the Canadian dollar is expected to be greatly affected by the pure policy statement accompanying the decision and the press conference of the Governor of Buloz Bank, as it may confirm the continued diverging performance of most major sectors. While retail sales are "a leading indicator of consumer spending," with strong weakness, the labor market sector is seeing tangible improvement, which may make the bank continue its rhetoric about its willingness to make an interest rate decision in the coming period if conditions warrant.
On the other hand, the positive tone may dominate the bank with the gradual increase in oil prices, which will support the Canadian economy on the one hand, and on the other hand, the United States of America and China reach an initial agreement and the signing of the new NAFTA agreement will enhance the conditions of the global economy and exports in the coming period.
As for now, the Canadian dollar pair is testing the broken resistance level 1.3075, and thus the price rebound from those levels will support the pair's rise again, especially if the pessimistic tone dominates the bank about the year 2020 and may return again to 1.31 levels.
However, if the bank raises its forecast for export growth for the coming period, it will significantly support this Canadian dollar, and the pair may retreat to 1.3040 levels.
As for Trump's trial by abusing his authority and obstructing the work of Congress, Republicans in the Senate voted 53 to 47 regarding the trial rules for his removal, and the decision sets the basis for six consecutive days of pleadings and Trump's testimony, which creates a bit of uncertainty, even if It would be futile in the end with the Republicans taking control of the Senate and who would eventually vote against Trump's removal.
The US dollar index is still stable near its highest level in a month, but gold prices rose slightly with the continuing fears of the spread of the Corona virus and news of its transmission from China to Seattle in the United States of America. And gold is still stable between the level of 1565/40 dollars an ounce.
Moving on to the main stock indices, the price actually increased once it had recovered from 29129 levels to 9340 before it started to retreat a little, and now the price is expected to return a little before purchasing support returns to control the price again. The German DAX started to retreat slightly after targeting new highs at 13640.