The Canadian Dollar (CAD) is little changed on the day, with neither a modest bid for US equity futures nor a more obvious bump in crude prices helping the CAD out, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. 🔗 Source 💡 DMK Insight The Canadian Dollar’s stagnation signals a lack of momentum in key markets right now. With US equity futures showing only modest bids and crude prices failing to provide a lift, CAD traders should be cautious. This indecisiveness could reflect broader economic concerns, especially as traders await more substantial data releases or geopolitical developments. If crude prices remain weak, it could further pressure the CAD, particularly if it breaks below key support levels. Watch for any shifts in sentiment around oil, as a significant drop could lead to a cascading effect on the CAD. Conversely, if equity markets rally, it might provide a temporary boost, but the underlying weakness suggests a potential for further downside. Keep an eye on the daily charts for CAD/USD; a break below recent lows could trigger more selling pressure, while resistance levels will need to be tested before any bullish positions are considered. 📮 Takeaway Monitor CAD/USD closely; a break below recent lows could signal further downside, especially if crude prices remain weak.

The Euro (EUR) is up a fractional 0.1% vs. the US Dollar (USD) and a relative underperformer among the G10 currencies as we head into Friday’s NA session, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. 🔗 Source 💡 DMK Insight The Euro’s fractional gain against the Dollar isn’t as strong as it seems, and here’s why that matters: With the Euro up just 0.1% against the USD, it highlights a broader trend of underperformance among G10 currencies. This could signal underlying weakness in the Eurozone economy, especially as traders brace for potential shifts in monetary policy from the European Central Bank (ECB). If the ECB leans towards a more dovish stance, it could further weaken the Euro, making it crucial for traders to monitor upcoming economic data releases and ECB communications closely. Look for key resistance around recent highs, as a failure to break through could trigger a sell-off. On the flip side, if the Euro manages to gain traction, it could indicate a shift in sentiment, potentially impacting related assets like European equities. Traders should keep an eye on the 1.05 level against the Dollar as a psychological barrier; a break below could lead to increased volatility. Watch for any economic indicators from the Eurozone that could sway market sentiment in the coming sessions. 📮 Takeaway Keep an eye on the 1.05 level for the Euro against the Dollar; a break below could signal increased volatility and further weakness.

The Pound Sterling (GBP) is up a modest 0.2% vs. the US Dollar (USD) and a relative performer among the G10 currencies in an environment of broad – albeit mild – USD weakness, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. 🔗 Source 💡 DMK Insight GBP’s 0.2% rise against the USD signals potential resilience in a weak dollar environment. With the USD showing broad weakness, GBP’s performance stands out, especially as traders look for safe havens or alternative currencies. This slight uptick could indicate a shift in sentiment, particularly as the market digests upcoming economic data and central bank signals. Traders should keep an eye on key resistance levels for GBP/USD around 1.25, as a break above could lead to further gains. Conversely, if the USD finds strength again, it could quickly reverse this trend. Watch for upcoming economic releases that could impact both currencies, particularly any shifts in Fed policy or UK economic indicators that might sway trader sentiment. The real story is whether this modest gain can hold or if it’s just a blip in a larger trend of dollar dominance. 📮 Takeaway Monitor GBP/USD closely; a break above 1.25 could signal further gains, while USD strength might reverse this trend.

The Japanese Yen (JPY) is strong, up 0.3% vs. the US Dollar (USD) and outperforming all of the G10 currencies with the exception of NOK and NZD, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. 🔗 Source 💡 DMK Insight The Japanese Yen’s 0.3% rise against the USD signals a potential shift in market sentiment. With the Yen outperforming most G10 currencies, traders should consider the implications for USD/JPY positions. This strength could be attributed to Japan’s economic resilience or shifts in monetary policy expectations. If the Yen continues to gain, watch for resistance levels around recent highs, as a sustained rally could trigger further buying interest. Conversely, if the USD regains strength, it could lead to a quick reversal, so keep an eye on key support levels. The broader context of global interest rates and geopolitical tensions will also play a crucial role in shaping currency movements, particularly for JPY as a safe haven. Don’t overlook how this might ripple through related markets, like commodities, where a stronger Yen could impact Japan’s import costs. Traders should monitor the USD/JPY pair closely, especially if it approaches significant technical levels in the coming days. 📮 Takeaway Watch the USD/JPY pair closely; a sustained Yen strength could signal shifts in market dynamics, especially if it tests key resistance levels.

Russia Consumer Price Index (MoM) declined to 0.3% in December from previous 0.42% 🔗 Source 💡 DMK Insight Russia’s CPI drop to 0.3% in December signals potential shifts in monetary policy. For traders, this decline could indicate easing inflation pressures, which might lead the Central Bank of Russia to reconsider interest rate strategies. If inflation continues to fall, expect potential rate cuts, impacting the ruble’s strength against major currencies. Watch for how this CPI data influences forex pairs like USD/RUB, especially if it breaches key support levels. Additionally, a sustained decline could ripple through commodity markets, particularly oil, given Russia’s significant role as a producer. Keep an eye on the next monetary policy meeting for hints on future actions, as any dovish signals could trigger volatility in both the ruble and related assets. 📮 Takeaway Monitor USD/RUB for potential volatility as Russia’s CPI decline could lead to shifts in interest rate expectations.

The British Pound (GBP) trades sideways against the US Dollar (USD) on Friday during the North American session, after reaching a daily high of 1.3413, but solid US data released this week capped Sterling’s advance. 🔗 Source 💡 DMK Insight The GBP’s sideways action against the USD signals a tug-of-war between bullish sentiment and strong US economic data. After hitting a daily high of 1.3413, the Pound is struggling to maintain momentum, largely due to solid US data that has bolstered the Dollar’s position. Traders should note that this could lead to a consolidation phase for GBP/USD, especially if the pair fails to break above recent resistance levels. If the US continues to show robust economic indicators, we might see a stronger Dollar, putting pressure on the GBP. Watch for key support around 1.3300; a drop below this level could trigger further selling. On the flip side, if the GBP can regain traction and break above 1.3450, it could signal a potential bullish reversal. Keep an eye on upcoming economic releases from both the UK and the US, as they could provide the catalyst for a breakout in either direction. 📮 Takeaway Monitor GBP/USD closely; a break below 1.3300 could lead to further declines, while a rise above 1.3450 may signal a bullish reversal.

China imported a record volume of Crude Oil in December and across 2025, driven by higher refinery runs and aggressive stockpiling, Commerzbank’s commodity analyst Carsten Fritsch notes. 🔗 Source 💡 DMK Insight China’s record crude oil imports signal a bullish trend for oil prices, and here’s why that matters: With increased refinery runs and aggressive stockpiling, China’s demand is likely to tighten global supply. This could push prices higher, especially if OPEC+ maintains production cuts. Traders should keep an eye on the $80 per barrel mark as a potential resistance level. If prices break above this, we could see a surge in bullish sentiment across the oil market. Additionally, this uptick in demand could ripple through related markets, impacting energy stocks and even currencies tied to oil exports. But there’s a flip side: if geopolitical tensions or economic slowdowns arise, that could dampen this demand. So, while the immediate outlook seems positive, traders should monitor broader economic indicators and any shifts in China’s economic policy that could affect demand. Watch for any news around OPEC+ meetings or changes in U.S. inventory levels that could influence market sentiment. 📮 Takeaway Keep an eye on crude oil prices around $80; a breakout could signal a strong bullish trend driven by China’s demand.

The US Energy Information Administration forecasts US Crude production to remain near 13.6 million bpd in 2026, with a gradual decline next year due to weaker drilling activity amid low Oil prices. 🔗 Source 💡 DMK Insight US crude production is projected to plateau at 13.6 million bpd, but here’s why that matters now: A forecasted decline in drilling activity due to low oil prices could signal tighter supply in the near term. Traders should keep an eye on how this impacts WTI and Brent prices, especially if production dips below expectations. If we see a significant drop in output, it could lead to a supply shock, pushing prices higher. Watch for technical levels around $70 for WTI; a breach could trigger bullish sentiment. Conversely, if prices remain low, we might see further cuts in production, which could create a ripple effect across energy stocks and related commodities. The market’s reaction to these forecasts will be crucial, especially with OPEC’s potential influence on global supply dynamics. But don’t overlook the flip side—if prices recover, we might see a rebound in drilling, which could counteract any bullish momentum. Keep an eye on the upcoming EIA reports for real-time adjustments to these forecasts. 📮 Takeaway Watch for WTI prices around $70; a breach could signal a bullish trend as production forecasts adjust.

OPEC+ production fell short of targets by 720,000 bpd in December, with Russia and Kazakhstan contributing most to the shortfall amid ongoing disruptions. 🔗 Source 💡 DMK Insight OPEC+’s production shortfall of 720,000 bpd in December is a big deal for traders: This gap, primarily driven by Russia and Kazakhstan, signals potential supply constraints that could push oil prices higher. With global demand rebounding, especially in Asia, the market’s sensitivity to supply disruptions is heightened. Traders should keep an eye on crude oil futures, particularly if prices approach key resistance levels. If we see Brent crude testing the $90 mark again, it could trigger further bullish sentiment. On the flip side, if OPEC+ manages to stabilize production in the coming months, we could see a pullback, especially if demand growth doesn’t meet expectations. Watch for any statements from OPEC+ regarding future production plans, as these could influence market sentiment significantly. Also, keep an eye on the correlation with energy stocks, which often react sharply to changes in oil prices. 📮 Takeaway Monitor Brent crude around the $90 level for potential breakout opportunities, especially in light of OPEC+’s production shortfall.

The price of Silver continued its upward trajectory this week, reaching a record high of $93.75 per troy ounce on Thursday morning. As a result, the Gold/Silver ratio briefly slipped below the 50 mark for the first time since March 2012. 🔗 Source 💡 DMK Insight Silver’s surge to $93.75 is a game-changer for precious metals traders. This record high not only reflects increased demand but also signals a shift in market dynamics, especially as the Gold/Silver ratio dips below 50. Historically, such a low ratio indicates that silver is outperforming gold, which could attract more speculative interest in silver assets. Traders should keep an eye on this ratio as it often precedes further price movements in both metals. If silver maintains momentum above this level, we might see a wave of buying pressure, particularly from retail investors looking to capitalize on the trend. On the flip side, if silver retraces, it could lead to a rapid correction, especially if the ratio rebounds above 50. Watch for key support around $90; a drop below this could trigger stop-loss orders and exacerbate selling pressure. Conversely, if silver breaks above $95, it could open the door for further bullish sentiment, drawing in institutional players who might be waiting for confirmation of a strong uptrend. 📮 Takeaway Monitor silver’s support at $90 and watch for a breakout above $95 for potential bullish momentum.