7 Jan 2015
USD/CAD: Choppy but decisively bid on oil prices
FXStreet (Guatemala) - USD/CAD is currently trading at 1.1839 having made a five year high at 1.1869 and a low of 1.1810 on the US shift.
USD/CAD is choppy at the start of the year, and in today’s US session, the pair continues with that theme, jittery below the five year highs recorded earlier. Bulls remain in control although the bears are reluctant to give up the upper half of the 1.18 handle and supply is containing the pair for the time being ahead of the FOMC minutes. However, the main driver in the Canadian dollar to the down side remains in the price of oil.
"Collapsing oil prices keep me (very) bearish of the Canadian dollar, given the number of highly-leveraged, relatively high price oil producers in the country. A move to 1.20-1.25 in USD/CAD is likely” - explained Kit Juckes, Global Head of Currency Strategy Societe Generale.
USD/CAD is choppy at the start of the year, and in today’s US session, the pair continues with that theme, jittery below the five year highs recorded earlier. Bulls remain in control although the bears are reluctant to give up the upper half of the 1.18 handle and supply is containing the pair for the time being ahead of the FOMC minutes. However, the main driver in the Canadian dollar to the down side remains in the price of oil.
"Collapsing oil prices keep me (very) bearish of the Canadian dollar, given the number of highly-leveraged, relatively high price oil producers in the country. A move to 1.20-1.25 in USD/CAD is likely” - explained Kit Juckes, Global Head of Currency Strategy Societe Generale.