The Canadian Dollar declined for the first timein ten days after crude oil came under pressure and dropped below $90 perbarrel.
TheCanadian Dollar declined for the first time in ten days after crude oil cameunder pressure and dropped below $90 per barrel. Earlier in the tradingsession, the currency fell against the U.S. Dollar on speculation economicgrowth would drive demand for the nation’s resources, which account for abouthalf its export revenue.
Besides thedrop in oil prices pressuring the market, news that U.S. factory orders unexpectedlyincreased gave the Greenback a boost as thoughts shifted toward an improvingeconomy.
The focusshould remain on commodity prices today as well as the shedding of stock marketassets. Crude oil and gold should continue to have the largest influences onthe Canadian Dollar’s direction, but another sharp sell-off in equities shoulddraw the attention of traders also.
Themorning’s focus will be on the ADP Employment survey. U.S. markets are likely tooverreact to this morning’s guesses as traders try to adjust their positionsahead of Friday’s Non-Farm Payrolls number. Pre-report guesses are for anincrease of 140.000 jobs in December.
Canada is expected to report that 20,000jobs were added in December. This will be a slight improvement of the 15,200jobs increase from November.
Technicallythe USD CAD is in a downtrend. The current range is 1.0208 to .9887. This rangecreates a retracement zone at 1.0047 to 1.0085.
On Tuesdaythe market took out downtrending resistance at .9968 and is now set up for apossible rally to 1.0088 over the near-term. The size and strength of the rallywill be determined by the direction of the outside commodity markets.
For furtherinformation on this and other Pattern, Price & Time products visit ourwebsite at www.patternpricetime.com