While tensions remain high between the US and Iran, they appear to be easing slightly with the US refraining from taking further action.
Consequently, oil prices have pared their initial upside, which in turn
has weighed on commodity linked currencies, such as the Canadian Dollar.
That said, USD/CAD looks attractive for a reversal, having broken back
above the 1.3000 handle. The pair now tests 1.3053, which marks the
23.6% fib, whereby a closing break above raises scope for a move towards
1.3100-10.To get more news about
wikifx, you can visit wikifx news official website.
Aside from geopolitics, eyes will be on BoC Governor Poloz at 19:00GMT (14:00ET) who is scheduled to take part in a fireside chat.
There is a risk that the Governor could provide a more cautious outlook
from a domestic standpoint following the recent economic growth data,
where Canada showed a contraction in growth for the first time in 8
months at -0.1%. Elsewhere, focus will also be on the Canadian jobs
report on Jan 10th and Business Outlook Survey on Jan 13th.
