USD/CAD - Global Markets in Safe-Haven Mode

With global markets in safe haven mode, the Canadian dollar this morning finds itself well supported on the back of commodities. Gold and silver are both up 0.26% and 0.45% respectively. WTI Crude Oil is trading relatively flat from yesterday’s close at +0.11%. Resistance for the loonie against the U.S. dollar remains at $1.25-$1.2514(0.80), and support is seen at $1.2461($0.7975) and major support at $1.2422 ($0.7950). Canadian Gross Domestic Product figures will be released on Thursday morning.

Geopolitical tensions stifle global equity markets. With North Korea aggressively firing a ballistic missile over Japan, the rocket landed about 1,200 kilometres off Japan's northern island of Hokkaido. Japan's Prime Minister Abe told reporters that a missile flying over Japan was a "grave and serious threat." Asian markets retreated over night as did the European. U.S. equity markets were also pointing to a negative open. With uncertainty, there is a shift to safe haven like gold, U.S. treasuries, and the Japanese yen, which will be at the forefront of trading today. U.S. GDP is releasing tomorrow.

Experts expect a range today of $1.2422 to $1.2540

Europe has been quiet on the fundamental front as no major event risk released today. The action will start tomorrow when French GDP and German Consumer Confidence release and forecasts are for 0.5% and 10.8, respectively. The euro has slipped and is currently trading at $1.4865.

Observers expect a range today of $1.4967 to $1.5063

The U.K. is on a bank holiday today, leaving the Sterling with not much to trade on. Nationwide House Prices will start the week off tomorrow for the U.K., and it is expected to release at 2.5% y/y and 0.0% m/m. The pound is currently trading at $1.6090.

Traders expect a range today of $1.6116 to $1.6229

The Australian dollar is well supported today as it holds onto Friday’s gains. Strong sentiment in the commodity space has helped keep the Aussie in positive territory. In the absence of any significant domestic data today, the Aussie is expected to be influenced by broader market sentiment. Resistance around the 0.7955 area is capping gains for the Australian-U.S. dollar pairing for the time being as the pair eyes the key psychological level at $0.8000.

Oil (WTI): $46.34 U.S. per barrel

Gold: $1,320.79 U.S. per ounce

Silver: $17.58 U.S. per ounce

Copper: $3.0823 U.S. per tonne

Dollar Index: 91.88

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