Week in FX Americas- Is the Loonie to be thrown a Government Lifeline?

The Forex market is very much paralyzed within a tight range as worries about the US fiscal cliff, Middle-East tensions and Greek debt negotiating seem to be keeping many investors sidelined. EUR/CAD left hand flows have been eating away at the dollar loonie outright, pushing the commodity sensitivity currency towards parity again. A think tank reporting early Friday that the ECB may have to cut certainly has hindered the single units progress as the week draws to a close.

The market chatter that the Canadian government is set to release new foreign investment guidelines, as early next week, clarifying the uncertainty of foreign ownership of energy companies in Canada, is likely to be CAD supportive. The global interest in Canadian asset resources, especially from China, could cap the USD/CAD progress of late. Mind you, the upcoming-shorted US holiday trading week does tend to throw a ‘spanner or two into the works.’

 

WEEK AHEAD

  • JPY Bank of Japan Rate Decision
  • AUD Reserve Bank Board Minutes
  • GBP Bank of England Minutes
  • USD U. of Michigan Confidence
  • CAD Consumer Price Index
  • EUR Euro-Zone Gross Domestic Product
  • USD Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Dean Popplewell

Vice-President of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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