12 Jan 2015
US Session recap: Commodity currencies on the back foot
FXStreet (Guatemala) - In the absence of any key events on the data front, the currencies continued within familiar ranges but the US session has the dollar on the back foot for the most part.
The major highlight has been the CAD suffering on the back of yet weaker oil and it not being a good day for the commodity currencies in general.
USD/CAD rose to the highest levels since January 2009, making a high of 1.1969 and a low of 1.1834 where the pair recovered from and has been better bid ever since on the shift. The price of oil fell to the lowest level in more than 5 1/2 years after Goldman Sachs Group Inc. and Societe Generale SA reduced their price forecasts.West Texas Intermediate decreased 4.7 percent to $46.07 a barrel, and Brent 5.3 percent to $47.43. The theme for the CAD is lower still and 1.2000 is on the cards according to a number of analysts on a technical and backed by the fundamental basis.
EUR/USD finished up on the day rallying from 1.1789 up and onto the 1.18 handle, pausing just sub the 1.1820 resistance before another shot up to 1.1847.
Elsewhere, in other majors, we traded within the ranges, with Sterling attracting bids at 1.5139 for 1.5187 highs, the Yen claiming back territory down to 118.16 ahead of the key psychological 118.00 supporting figure. Meanwhile, the commodity currencies such as the Aussie, were driven back. We reached a low through the bullish opening gap at 0.8130 and then settled in a sideways play around 0.8160.
The major highlight has been the CAD suffering on the back of yet weaker oil and it not being a good day for the commodity currencies in general.
USD/CAD rose to the highest levels since January 2009, making a high of 1.1969 and a low of 1.1834 where the pair recovered from and has been better bid ever since on the shift. The price of oil fell to the lowest level in more than 5 1/2 years after Goldman Sachs Group Inc. and Societe Generale SA reduced their price forecasts.West Texas Intermediate decreased 4.7 percent to $46.07 a barrel, and Brent 5.3 percent to $47.43. The theme for the CAD is lower still and 1.2000 is on the cards according to a number of analysts on a technical and backed by the fundamental basis.
EUR/USD finished up on the day rallying from 1.1789 up and onto the 1.18 handle, pausing just sub the 1.1820 resistance before another shot up to 1.1847.
Elsewhere, in other majors, we traded within the ranges, with Sterling attracting bids at 1.5139 for 1.5187 highs, the Yen claiming back territory down to 118.16 ahead of the key psychological 118.00 supporting figure. Meanwhile, the commodity currencies such as the Aussie, were driven back. We reached a low through the bullish opening gap at 0.8130 and then settled in a sideways play around 0.8160.