Trading news

USD/CAD: the consolidation near the level of 1.2635 _26/04/2016

Technical analysis and trading recommendations -

Last Friday, the Canadian dollar rose against the backdrop of more positive than expected, data on inflation and retail sales in Canada, as well as due to higher oil prices. Thus, the annual core inflation in Canada was 2.1% in March, while analysts predicted its growth at 1.9%. The data triggered buying Canadian currency, as eased fears about the possibility of further easing of monetary policy of the Bank of Canada, as the central bank has repeatedly stated earlier.

Support for the Canadian dollar also had an increase in oil prices, which rose by about 1.3% on Friday.

Oil prices have a strong correlation with the Canadian dollar quotations. Long-term trend in oil prices will determine the main direction of movement of the Canadian dollar. While rising oil prices, will be strengthened and the loonie.

The second most important factor for the dynamics of the pair USD / CAD is the monetary policy of the central banks of Canada and the United States.

Earlier in April, the Bank of Canada kept its benchmark interest rate unchanged, at 0.5%, and raised its forecast for economic growth in Canada for 2016. The growth of the country's GDP this year will be 1.7% versus January's forecast of growth of 1.4%.

And now investors expect the Fed decision and comments on the US monetary policy plans before taking further action on the pair USD / CAD.

At 12:40 (GMT) today scheduled speech of the Bank of Canada Stephen Poloz. In his speech before the parliamentary committee on S.Poloz last week noted that the adaptation of the Canadian economy to lower commodity prices will restrain its growth in the next few years. In addition, according to S.Poloz, there is a risk of further deterioration in the global economy, which is also a negative impact on commodity prices, including oil.

Also pay attention to the data from the American Petroleum Institute (API) with respect to oil storage tanks in the United States last week that he will present today at 20:30 (GMT). Crude oil is an important source of export revenue in Canada, and the correlation pair USD / CAD and oil prices close to 92%.

Tuesday, 26 Apr, 2016 / 11:36

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