Focus on USD/CAD

The Canadian dollar remains one of the key currencies to watch at the moment particularly given the volatility we’ve been seeing in oil prices.

Canadian Dollar
Source: Bloomberg

Oil is a key ingredient for Canada’s economy and with prices continuing to slip, the impact could be devastating. In fact, the Bank of Canada Governor Stephen Poloz was on the wires this week saying the falling oil prices would have an ‘atrocious’ effect on the economy. In the absence of geopolitical risk, it seems there could be further downside for oil and in turn the CAD. Having said that, USD/CAD is an interesting pair to watch at the moment. The USD has been in fine form this week and heading into the non-farm payrolls reading, I feel traders will be looking to buy the dips in the greenback. Traders could look to buy USD/CAD on dips into 1.2600 with stops placed below 1.2500. Potential targets will be to 1.2800 which is where recent highs lie and there is a possibility we’ll see it nudge through that level.


Click to enlarge

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.