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USD/CAD Loonie Recovers as Brexit Fears Ease Ahead of Fed Chair Testimony

USD/CAD Loonie Recovers as Brexit Fears Ease Ahead of Fed Chair Testimony

The Canadian dollar got a boost from British polls pointing to an increase in holiday camp. During the weekend the feeling began to change after the tragic shooting of pro-Stay MP Jo Cox. The USD has appreciated as investors sought a safe haven after fear of uncertainty on the outcome Brexit referendum. Commodities were lower than the USD rose. The CAD was hit on two fronts. Depreciating against the greenback and the support oil prices, the pair returned to almost 1.31

The three major factors that guide the destiny of the Canadian dollar are :. Fed Brexit the referendum and the price of oil. Brexit fears triggered risk aversion and probably did opt Fed hiking rates in June. The flight to safety flows converted into USD rally accentuating the downward pressure on oil prices giving little support to the ADF.

Stay With the campaign starring a wire near the back of the pound appreciated that the risk is back on the markets. Driving season and cheap oil prices boosted demand for energy and facilitated a rise in oil prices ahead of the EU referendum vote on Thursday.

Despite the easing of anxiety Brexit Minneapolis Fed President Kashkari today said all political options would not be the table in case of a victory by the holiday season.



USD / CAD lost 0.719 percent in the last 24 hours. The pair is trading at 1.2801 after the polls in Brexit point to a resumption of tourist camp in the UK. Investors welcomed the news and returned to the markets to trade as risk aversion subsided. The dollar had gained the largest dollar was considered a safe haven in case of Britain breaking with the European Union. Stocks, oil and GBP all granted that Brexit concerns were lower after the release of the weekend polls.



West Texas has increased 2,239 percent in the past 24 hours. Trading at $ 49.23 on a week that will feature US Federal Reserve Chairman Yellen appearing twice and of course the final results of the referendum Brexit Friday. the cheap gasoline led to a rise in world demand helping boost crude prices despite producing record levels.



The yellow metal backtracked after raising the possibility of a reduced Brexit obtained. Gold was one of the beneficiaries of market anxiety about the possible outcome of leave. Since the polls and not economic data provides direction to the market this week, it is clear that this will be a very emotional week as traders keep abreast of changes in voter preferences.

wholesale trade in Canada rose less than expected in April. The forecast called for growth of 0.5 percent, but the final gain was 0.1 percent with food, beverages and tobacco combined with minerals and precious metals, but could hardly compensate for losses in machinery, equipment and supplies. Wholesale indicators was positive for the first time in three months, but still below expectations. The next Canadian indicators are retail sales data Wednesday, June 22 at 08:30 EDT. Sales in the core retail are expected to have contracted again as softer economic data is scheduled for the second quarter

CAD events to watch this week :.

Tuesday, June 21
10:00 USD Fed President Yellen testimony
Wednesday, June 22
8:30 CAD base of retail sales m / m
10:00 USD Fed President Yellen TESTIFY
10:30 USD gross oil stocks
Thursday, June 23
ALL DAY referendum EU UK
8:30 USD unemployment claims
Friday, June 24
UK referendum results
4:00 EUR German Ifo business climate
8:30 USD orders durable goods m / m

* All times EDT
for a complete list of scheduled events in the forex market visit the economic calendar MarketPulse


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