Canadian dollar rises in forex after oil prices

The USD / CAD pair in a bearish correction in the forex market as the risks related to the Omicron variant diminish.

The commodities sector has been on the rise today as oil prices are higher, which is a currency support factor for the loonie. At the time of this writing, the USD / CAD pair is down 0.2% and is hovering around 1.128. The pair has fallen to a low of 1.2797 from a high of 1.2853 on the day so far.

  • USD / CAD falls to new daily currency lows due to positive market sentiment.
  • The Covid-19 variants are now expected to be less severe than initially expected.

Risk sentiment is strong as investors are betting that the latest type of COVID will not disrupt global development. This, in turn, encouraged a bid on oil despite regulators’ concerns about its spread. In recent news, a trio of studies suggested that Omicron is less likely to send people to the hospital than Delta. Also, antiviral drugs and booster shots are becoming more and more available.

Overall, it’s a positive backdrop for the markets and the Santa Claus rally is starting to take shape on Wall Street. It’s a breath of fresh air for investors who, on the other hand, were concerned about a combination of virus fears, tighter policies, and bleak prospects for US fiscal stimulus.

As a result, US stocks will close at new all-time highs, prompting more drug makers to announce that their COVID-19 preventatives retain protection against the Omicron variant. Additionally, data from the US showed personal income and expenses increased, with an improvement in consumer confidence and jobless claims remaining near recent lows.

The S&P 500 rose 0.7% to hit highs of 4,733. The Nasdaq Composite rose 0.9% to 16.339 and the Dow Jones Industrial Average rose 0.65% to a high of 36.006 with still time to close and the last full day of bond trading before Christmas Eve (the The bond market was closed at 2 p.m. ET before a holiday on Friday, while the stock market was scheduled to stay open until 4 p.m. as usual, but it appears that it will be closed due to Christmas Day falling in. Saturday).

Meanwhile, the 10-year US Treasury yield rose to 2.47%. The index DXY it’s pretty flat that day, but stays under pressure in the side channel / bevel formation.

Daily chart of the dollar index (DXY)

Dans l’actualité jeudi, AstraZeneca (ANZ) will declare that they are anticipated anticorps Evusheld avait conserved are neutralizing activity against the variant omicron lors d’essais cliniques menés par l’Université d’Oxford au Royaume-Uni et l’Université de Washington aux U.S.

US Data Keeps Wall Street Auction Going

Looking at the data, initial jobless claims in the United States totaled 205,000 in the week ended December 18, in line with market expectations. Personal consumption expenditure inflation increased 0.6% month-on-month in November and 5.7% year-on-year, in line with market forecasts. However, excluding volatile food and energy costs, the measure increased 4.7% year-over-year, the highest since 1989, helping maintain a high performance and a sustained US dollar.

Meanwhile, personal income increased 0.4% in November compared to market expectations for a 0.5% gain, while spending rose 0.6% according to estimates. Finally, the University of Michigan Consumer Confidence Index was revised slightly higher Thursday to 70.6 for December from preliminary estimates of 70.4.

By Ross J Burland, FXStreet

Ross Burland started his Forex career in the City of London in 2001. Originally employed by the FX department of Sucden (UK) Ltd as a Corporate Sales and Junior Dealer (an FSA qualified investment advisor), Ross eventually executed the Institutional FX place in the market. -Create an office prior to being hired to join the foreign exchange department of Investec Bank on Gresham Street in a client trading / sales role, specializing in corporate treasury management and specialty finance.

The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and business move carries risk, you need to do your own research when making a decision.

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Disclaimer: The information and opinions in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell currency or CFD contracts. Although the information contained in this document has been taken from sources considered reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone trusts such information.

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