Market playas went back to worrying about the Evergrande fallout!
Will this mean another trip higher for USD/CAD?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar:
OPEC++ meetings ongoing. Will the group agree to bump up production?
Eurozone Sentix investor confidence at 8:30 am GMT
Canada’s building permits at 12:30 pm GMT
U.S. factory orders at 2:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/CAD
There were not a lot of economic catalysts during the Asian session though the dollar found some support as traders went back to worrying about the Evergrande fallout.
Let’s see if the U.S. session traders pick up on the lowkey risk aversion theme.
I don’t see any top-tier economic data release so the markets will probably trade on existing market themes and possibly any headlines from the ongoing OPEC+ meeting.Word around is that the group is planning to unlock another 400,000 barrels per day in the next couple of months. If true, or if the OPEC+ group agrees to boost production further, then we’ll probably see lower crude oil prices that can weigh on the oil-related CAD.
Meanwhile, this week’s U.S. non-farm payrolls (NFP) reading will get some attention. Aside from playing safe-haven to risk currencies, the dollar will likely get more support from speculations of a strong NFP reading which will add street cred to the November tapering rumors.
If the OPEC+ group boosts production enough to weigh on CAD, then we could see USD/CAD bounce from its current levels just above the 1.2600 zone.
1.2750 is a good target if you think that the pro-dollar, anti-CAD sentiment from last week will repeat this week.
If risk-taking takes over the markets, though, then I’ll also be on the lookout for USD/CAD breaking below its 1.2600 support.