The Canadian dollar is trading lower against the USD on the first negotiating session week. The volatility experienced in the markets since exit polls began to point to a leave of victory on the EU referendum in the UK continues as three of the three main attractions of the European Central Bank (ECB) Forum in Portugal are removed. Bank of England (BoE) Governor Mark Carney, European Central Bank (ECB) chief Mario Drahi and Federal Reserve Janet Yellen had to withdraw from their scheduled appearance in what was a highly anticipated event that the market is looking for central bankers advice. Fed President Yellen is in Europe to attend the annual meeting of the Bank for International Settlements, but will be back after the meeting, not leaving time to participate in the ECB's forum on the Fed spokesman said the weekend.
Global stock markets and most currencies continue to drift, investors flock to safe havens: USD, JPY, CHF and gold. The losers were the emerging markets, the pound and raw materials such as handles of risk aversion in the market that the fate of the E.Ü. is uncertain. The rising dollar and falling commodities, energy in particular, were negative for the CAD, which lost more than 2 percent in the last 5 days. The pair crossed the 1.31 level of prices and the Canadian economic calendar will no against-arguments to the sweetness of money.
The rating agency Standard and Poor's cut the credit of England from AAA to AA following the result of the referendum vote. The negative outlook is based on the continuous political infighting that would not lead to a quick resolution to the situation in the UK is. The pound fell as much as 14 percent from a 52-week high, with 10 percent of this entry after the referendum results started to flow in.
USD / CAD gained 0.741 percent in the last 24 hours. The pair is trading at 1.3097 after the CAD depreciated on Brexit anxiety. The USD has proven to be a safe haven for investors after the referendum results at EU UK showed a surprising victory by the leave camp. This week will be difficult to maneuver for marketers because there will be little economic data to guide markets, leaving the rhetoric from the central bank and the states around the world to shape the price action after the historic decision by voters British politician.
West Texas tumbled 2.79 percent over the past 24 hours. The energy price is trading at $ 45.71. Risk aversion has boosted the USD against riskier assets, including commodities. Crude oil prices fell nearly 7 percent since the decision Brexit was imminent. Oil prices follow the news and investor reaction which currently have packed less risky assets on what was an unlikely event, but there were contingency plans prepared for, however. The preparation has not stopped the rapid movements of the market, but it allowed market price information on a timely basis as other events. The Swiss National Bank (SNB) shock decision is the perfect counterpoint to the market reaction to Brexit. Overproduction and EU membership anxiety continue to downward pressure on crude prices.
strength of the US dollar and weak energy will define the CAD this week before the holiday Canada Day on Friday. Next week the symbiotic relationship with the US will be at the forefront as US employment data and the minutes of the June meeting of Federal Open Market Committee (FOMC) will be released which could boost the dollar but also appreciated the DAC with respect to other pairs.
market events to watch this week:
Tuesday, June 28
European Council Summit to discuss Brexit
8:30 USD Final GDP q / q
10:00 USD CB consumer confidence
Wednesday, June 29
10:30 USD crude oil inventories
Thursday, June 30
4 : 30am GBP current account
8:30 CAD GDP m / m
8:30 USD unemployment claims
CNY manufacturing PMI 9:00 p.m.
9:45 p.m. CNY manufacturing PMI Caixin
Friday , July 1
4:30 GBP Manufacturing PMI
10:00 USD ISM Manufacturing PMI
* All times EDT
for a full list of events planned for the visit of exchange market economic calendar MarketPulse
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