Canadian Dollar Strengthens On Rising Risk Appetite

By | November 27, 2019

The Canadian dollar moved up against its major counterparts in the Asian session on Wednesday amid rising risk appetite, as U.S. President Donald Trump commented that the talks were in the “final” stage of phase one deal.

Trump said Tuesday in Washington that the trade talks had entered their ‘final’ stage, indicating progress on completion of the partial trade deal.

“We’re in the final throes of a very deal. I guess you could say one of the most important deals in trade ever,” Trump said.

The comments came after China announced new guidelines for the protection of patents and copyrights and the Chinese Commerce Ministry said negotiators for both sides had spoken on the phone and agreed to more talks aimed at reaching a deal.

Investors shrugged off data showing a drop in Chinese industrial profits in October.

The loonie advanced to an 8-day high of 1.4617 against the euro from Tuesday’s closing value of 1.4626. The loonie is seen finding resistance around the 1.44 level.

The loonie spiked up to 82.26 against the yen, its strongest since November 19. The loonie is likely to find resistance around the 84.00 level.

The loonie that closed Tuesday’s trading at 0.9008 against the aussie firmed to an 8-day high of 0.8993. Next key resistance for the loonie is seen around the 0.88 mark.

The loonie rose back to 1.3271 against the greenback, heading towards a 5-day peak of 1.3268 hit at 5:45 pm ET. If the loonie rises further, 1.30 is likely seen as its next resistance level.

Looking ahead, Swiss economic sentiment index for November is set for release in the European session.

In the New York session, U.S. durable goods orders, pending home sales, personal income and spending data, all for October, weekly jobless claims for the week ended November 23, GDP data for the third quarter and Fed Beige book report will be featured.


Leave a Reply