Both the Canadian Dollar and the British Pound was strong yesterday and this is the reason why we created a video about why and how it happened. As a Filipino Forex Trader, we must understand that the currency’s strength is determined by the interaction of a variety of local and international factors such as the demand and supply in the foreign exchange markets; also included is the interest rates of the central bank; economic events like inflation and growth in the domestic economy (GDP); and the country’s balance of trade.
Using our website, we can easily check the currency performance of CAD and GBP by simply clicking the Currency Monitoring Chart.
Is the value of the Canadian dollar correlated to oil prices?
USD/CAD and Crude Oil are negatively correlated, meaning that when one instrument moves higher, the other moves lower.
U.S. crude stockpiles fell sharply last week as the seasonal pickup in demand over the summer months gets underway. U.S. crude inventories fell by 5.36 million barrels for the week ended May 27, according to an estimate released Tuesday by the American Petroleum Institute. That compared with a draw of 439,000 million barrels reported by the API for the previous week. [Marketwatch]
Meanwhile, The UK has announced zero daily Covid deaths within 28 days of a positive test for the first time since March 2020. The latest figures also reported another 3,165 new cases, compared with 3,383 on Monday and 2,493 one week ago. [BBC]
#DailyBrief | Things traders need to know today:
Thursday, June 3, 2021
🏦 US stocks posted small gains on Wednesday, with the energy sector leading the move while meme stocks surged. Investors remained cautious ahead of Friday’s job report. Major European indices increased and the Australian benchmark hit another record high.
💵 The US dollar index (USDX) ended the session unchanged at 89.87 after retreating from intraday high 90.21, while the yield on 10-year Treasury trended lower to 1.587%. USDJPY was up to 109.57.
💶 EUR/USD was little changed at 1.2211. Official data showed that producer prices in the Eurozone grew 1.0% on month in April (as expected). Retail sales in Germany dropped 5.5% on month in April (-2.5% expected).
🇬🇧 GBP ended higher at 1.4170, with the UK reporting zero Covid death for the first time since March 2020.
🇦🇺 AUD was flat at 0.7751 despite the better-than-expected Australian Q1 GDP. Retail sales data is scheduled for release today.
🇳🇿 NZD dipped to 0.7235.
🇨🇦 USDCAD fell to 1.2034, the lowest closing price since 2015.
💰 Gold advanced to $1908.24.
🛢 WTI crude (SpotCrude) extended the gains to $68.70, the highest since October 2018. US crude inventories declined by 5.36 million barrels last week.
🥇 Bitcoin rose 5% to levels above $38,000, and Ether jumped 7% to $2,700.
🥊 Boxer-turned-politician Manny Pacquiao is emerging as an obstacle to Philippine President Rodrigo Duterte’s succession plans. [📌 bloom.bg/3z0JBkq]
TRADE SIGNAL SUMMARY: (Thursday, June 3, 2021)
EUR/USD ⬇️SELL⬇️ @ 1.22100
USD/JPY ⬇️SELL⬇️ @ 109.700
USD/CAD ⬇️SELL⬇️ @ 1.20400
XAU/USD ⬆️BUY⬆️ @ 1905
GBP/USD ⬆️BUY⬆️ @ 1.41600
GBP/JPY ⬆️BUY⬆️ @ 155.300
NZD/USD ⬇️SELL⬇️ @ 0.72235
AUD/USD ⬇️SELL⬇️ @ 0.77425
