News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Tonight will see Chinese markets open after a two day closure to observe mid-Autumn festival. Naturally, there will be increased focus and volatility given the current backdrop of Evergrande default concerns. Get your market update from @JMcQueenFX here:
  • RT @RiskReversal: A pretty hot @MacroSetup this week, brought to you by @Nadex and @openexc. @GuyAdami & I warn the young, but mighty @CVec…
  • RT @Nadex: The Macro Setup is back! CNBC’s @GuyAdami, @RiskReversal, and special guest @CVecchioFX discuss: -Evergrande vol hurts everlong…
  • Japanese #Yen Forecast: $USDJPY Breakout Imminent- #FOMC Levels -
  • RT @BrendanFaganFx: 78 counterparties take $1.240 trillion at Fed's fixed-rate reverse repo $USD $DXY
  • here we go - starting right now
  • SEC Chair Gensler: - Working with Congress on crypto would help - A large number of crypto investors could be harmed
  • Pre-FOMC US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/JPY
  • The big question is whether the Fed announces taper tomorrow or whether they punt that announcement to the November rate decision, waiting for employment data to improve to the point of ‘significant further progress. More market update from @JStanleyFX :
  • SEC Chair Gensler: - The market is in a better position to absorb global shocks - Securities rules give the SEC great power over crypto
Canadian Dollar, Crude Oil Gain on Saudi-Russia Output Cut Confusion

Canadian Dollar, Crude Oil Gain on Saudi-Russia Output Cut Confusion

Daniel Dubrovsky, Strategist

Canadian Dollar, USD/CAD, Crude Oil, Trump, Saudi Arabia, Russia – Asia Pacific Market Open

Canadian Dollar Gains as Crude Oil Soars as Investors Investigate Production Cuts

The Canadian Dollar was one of the best-performing major currencies Thursday as it reaped the benefit of volatility in crude oil prices. The commodity is a key source of revenue in Canada and can thus imply knock-on effects for the economy and monetary policy. At one point during the Wall Street trading session, WTI was up over 28% for the session before quickly trimming gains to 16.72% by the close.

The rollercoaster ride in oil could be contributed to confusion about production cuts between Saudi Arabia and Russia amid the ongoing price war. After a few days of talks, US President Donald Trump announced that Saudi Arabia and Russia were on the cusp of agreeing to major oil production cuts. He hinted that output could be trimmed by as much as 10-15 million barrels per day.

This was met with immediate hesitation as reports crossed the wires that both Russia and Saudi Arabia had not agreed on any sizes on production cuts. The latter did call for an urgent meeting of the OPEC+ alliance as it also wants countries such as the US, Canada and Mexico to join in on reducing output. Later in the Wall Street session, Trump said he is currently not planning to ask for domestic oil producers to cut production.

Equities joined in on the rally in crude as energy stocks soared. The S&P 500 and Dow Jones closed +2.28% and +2.24% higher respectively. Meanwhile the focus on commodity prices may have pushed investors to brush aside a record 6.64 million rise in US jobless claims last week amid the coronavirus and social distancing measures. The anti-risk Japanese Yen underperformed alongside the similarly-behaving Swiss France.

Friday’s Asia Pacific Trading Session

Wall Street futures are mixed heading into Friday’s Asia Pacific trading session as investors will have to weigh the economic impact of oil output cuts against the severity of a global recession. Keep in mind that in the background, the Fed is continuing with open-ended quantitative easing. On the fiscal side of things, House Speaker Nancy Pelosi reiterated that another virus relief bill may not be in the cards for a few more weeks.

Further gains in crude oil prices ahead may bode well for the Canadian Dollar and an upbeat tone in markets could also push the sentiment-linked Australian Dollar higher. This could come at the expense of the Japanese Yen and potentially the haven-linked US Dollar. Meanwhile confirmed coronavirus cases have surpassed 1 million according to the latest report from John Hopkins University.

Canadian Dollar Technical Analysis

USD/CAD prices continue to consolidate with a slight downside bias. On the 4-hour chart below, guiding the Loonie lower is falling resistance from last month’s top where prices stalled within highs from 2016. A close under near term rising support - pink line - from late March may send prices lower to retest the horizontal barrier between 1.3918 to 1.3986. Taking out this area may pave the way for downtrend resumption.

USD/CAD 4-Hour Chart

Canadian Dollar, Crude Oil Gain on Saudi-Russia Output Cut Confusion

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.