FX Action: USD-CAD has lifted back to the upper 1.34s
FX Action: USD-CAD has lifted back to the upper 1.34s after dipping to a low of 1.3453 in the early London session. The pair is now showing a fractional gain on the day. A 1%-plus ebb in oil prices has put the Loonie under the cosh, in a market still eager to pick U.S. dollars on dips. USD-CAD has been in a choppy oscillation for some 10 days now. The wildcard for USD-CAD remains the evolution of oil prices, which will be greatly affected by whether Opec will be able to galvanize enough commitment at the November 30 meetings among oil producing nations to adhere to the planned supply cuts. Analysts remain sceptical of this, however, and bullish of USD-CAD, seeing the U.S. dollar remaining bid on expectations for reflationary economic policies under Trump, combined with Fed tightening. Canadian markets will also remain wary as Trump intends to re-negotiate the NAFTA agreement. Analysts look for an eventual move on 1.4000. Support is at 1.3500 and 1.3520-22, and the 20-day moving average is presently sitting at 1.3467.