Canadian Dollar Climbs On Risk Appetite
07 January 2020 - 4:20PM
RTTF2
The Canadian dollar strengthened against its major counterparts
in early European deals on Tuesday, as U.S.-Iran tensions eased
after there was no further escalation in conflict.
Global sell-off in stocks abated amid lack of fresh developments
in the conflict between the U.S. and Iran.
On the trade front, it is expected that the Chinese trade
delegation will sign the first phase of its trade deal with the
U.S. in Washington on Jan. 15.
Investors turned cautiously optimistic about economic growth
prospects in the year ahead after surveys of service sectors out
overnight showed an improvement in the United States, U.K. and
EU.
Investors await reports on the U.S. trade deficit, service
sector activity and factory orders due later in the day.
The loonie held steady against its major opponents in the
previous session, except the aussie.
The loonie rose to more than a 2-month high of 0.8939 against
the aussie from Monday's closing value of 0.8997. The loonie is
poised to challenge resistance around the 0.88 level.
Data from ANZ showed that Australia's job advertisement declined
at the fastest pace in seven months in December.
Job ads dropped 6.7 percent month-on-month in December,
following a 1.8 percent decrease in November. This was the third
consecutive fall and the biggest drop since May.
The loonie appreciated to a weekly high of 1.2957 against the
greenback, compared to Monday's closing quote of 1.2964. If the
loonie rises further, 1.28 is possibly seen as its next resistance
level.
The loonie firmed to a 5-day high of 83.73 against the yen, from
yesterday's closing value of 83.59. The loonie is seen finding
resistance around the 85.00 level.
The loonie gained to 1.4492 against the euro, after falling to
1.4517 in the Asian session. The loonie is likely to locate
resistance around the 1.42 level.
Survey data from IHS Markit showed that Germany's construction
sector expanded at the fastest pace in nine months in December.
The construction Purchasing Managers' Index rose to 53.8 in
December from 52.5 in November. This was the highest score since
March.
Looking ahead, U.S. and Canadian trade data for November, ISM
services PMI for December, factory orders for November and Canada
Ivey PMI for December will be featured in the New York session.
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