Week in FX Americas – Loonies Flight Is Not As Clear As the EUR’s

The Loonie does not want to be left behind by its other commodity currency foes. The interest rate sensitive, oil and gold supported currency managed to print a three-month high outright on Friday against its largest trading partner, the US. Faltering only once on news that Canada’s November trade deficit was bigger than expected (-$1.98b vs. -$552b).

The currency has since resumed its grind higher. However, the market can expect quite a bit of big dollar buying interest around the 0.98 cent support mark and a little below that. Topside seems to be a different matter, with little resistance until the dollar figure above, 0.99c. Because of the Loonie touch, Goldman Sachs, the motley crew with the ‘Midas touch’ has been seen closing out their long EUR/CAD dollar positions in favor of a direct swap into EUR/USD. With their single currency positional play intact, their EUR for EUR return is better served against an underdog, like the ‘Big’ dollar rather than many investors outside thoroughbred the loonie!

Draghi’s press conference this week has few clairvoyants looking at a EUR handle just under the 1.40 print as its immediate objective.




  • EUR German Consumer Price Index
  • GBP Consumer Price Index
  • USD Producer Price Index
  • EUR Euro-zone Consumer Price Index
  • USD U.S. Federal Reserve Releases Beige Book
  • EUR ECB Publishes Monthly Report
  • AUD Unemployment Rate
  • NZD Consumer Prices Index (YoY)
  • CNY Real GDP
  • USD U. of Michigan Confidence

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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.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis 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