USDCAD

Technical Analysis – USDCAD strongly bearish at 2-year lows

Posted on August 2, 2017 at 6:28 am GMT

USDCAD is in a clear downtrend on the daily chart, making lower highs and lower lows since falling from the May 5 peak of 1.3793. This marked the highest level since February 2016. After falling below the 200-day moving average (MA) on June 13, prices accelerated their decline to touch a 2-year low of 1.2413 on July 26. The market made a corrective move and bounced from these lows after becoming overextended, as indicated by RSI falling into oversold territory below 30. A [..]

Forex Market Review (European Session) – Dollar edges up in quiet trading; euro unmoved by flash CPI data

Posted on July 31, 2017 at 3:00 pm GMT

Major currencies were steady in European trading on Monday as risk aversion and central bank meetings later in the week kept investors on the sidelines despite some key data releases. The US dollar inched higher against most other currencies but was weaker against the Japanese yen. The euro saw a mixed response to flash inflation numbers out of the Eurozone, while the pound held near last week’s 10-month highs ahead of ‘Super Thursday’. Fresh geopolitical tensions gave rise to some [..]

Forex Market Review (European Session) – Dollar continues declining after robust growth; loonie eyes fresh high

Posted on July 28, 2017 at 3:05 pm GMT

Second quarter US GDP estimates dominated investors’ attention during today’s European session trading. Certain components within the data led to the dollar recording losses as the news became public, though those were short-lived. In other notable releases, Canadian growth figures for May were released today as well. The much-awaited preliminary US GDP estimates for the second quarter of the year showed the economy expanding at an annualized rate of 2.6%, as expected. First quarter growth was revised downwards to 1.2% [..]

Forex Market Review (Asian Session) – Positive eurozone data supports euro; dollar under pressure ahead of GDP figures

Posted on July 28, 2017 at 7:51 am GMT

As Asian traders were about to close the trading week, the dollar was pressured again, with the dollar index falling a tenth-of-a-percent to 93.76. The euro gained as a string of data came in as expected, leaving no room for disappointment. Economic data out of Japan signaled a sustainable growth in the second quarter, underpinning the Bank of Japan’s buoyant economic view. Japan’s economy expanded 1.0% annually in the first quarter, showing positive growth for more than a year. Analysts [..]

Investment Theme – Dovish Fed spurs commodity prices and currencies higher

Posted on July 27, 2017 at 4:19 pm GMT

Commodity currencies are looking at their most bullish since 2015 after the Federal Reserve struck a dovish tone on inflation at its latest monetary policy meeting yesterday, lifting the price of risk assets, including those of commodities. Commodity prices have already been on the up during the past month, boosted in part by growing demand from China – the world’s biggest consumer of commodities. This uptrend has helped drive commodity-linked currencies such as the Canadian, Australian and New Zealand dollars [..]

Forex Market Review (European Session) – Dollar recoups modestly on hopes of business spending underpinning GDP growth

Posted on July 27, 2017 at 2:44 pm GMT

The dollar somewhat rebounded during the European session with the dollar index up 0.1%. The latest data on durable goods orders, jobless claims and trade balance on goods supported the US currency to retrace some of earlier losses post the Federal Open Market Committee meeting. The euro declined against the greenback by 0.35% as the US session was about to start. Monthly orders for durable goods in the US rose 6.5% last month, expanding at more than double the expected [..]

Technical Analysis – USDCAD in downtrend; consolidates near key 1.25 level

Posted on July 26, 2017 at 8:57 am GMT

USDCAD is in a clear downtrend after making lower highs and lower lows for the past two months. On the 4-hour chart, the downside bias is showing signs of exhaustion though. A low of 1.2480 was reached on July 25 and the market is expected to consolidate around this level in the near term. The MACD is indicating divergence, as it is sloping upwards while USDCAD is sloping downwards. This suggests that downside is limited for now and short-term bottoming [..]

Forex News – OPEC remains committed to cutting output; oil rises; loonie receives a boost

Posted on July 25, 2017 at 2:36 pm GMT

Oil prices maintained their positive momentum, rising for a second straight day after OPEC countries called on several of the organization’s members to adhere to the deal to reduce output. Adding to momentum for the commodity and further boosting prices was the commitment by Saudi Arabia – the world’s number one oil exporter – to cut exports starting next month. The oil-linked loonie gained on the back of these developments, rising to a fresh multi-month high relative to the dollar. [..]

Forex news – Canadian inflation and retail sales moderate in June but loonie rallies

Posted on July 21, 2017 at 4:01 pm GMT

The commodity-linked Canadian dollar, which has benefited this week from a rebound in energy prices, extended its gains on Friday despite data out of the country indicating softer inflation and retail sales in June. The focus now turns to the Bank of Canada, which is expected to maintain the hawkish stance it held earlier this month. Statistics Canada released on Friday the latest numbers on inflation and retail sales. According to the data, Canadian headline CPI turned negative in June for the [..]

Forex Market Review (European Session) – Dollar at 13-month lows; loonie gains on rising hike prospects; euro at fresh high

Posted on July 21, 2017 at 3:11 pm GMT

Barring inflation and retail sales data out of Canada, today’s European session was a rather quiet one in terms of data releases. In the absence of data during the rest of the session, forex market participants placed their orders having in mind developments from yesterday’s European Central Bank meeting, as well as developments on the US political front. The dollar index, which gauges the greenback against the currencies of six major US trading partners, fell to 93.99 today, a 13-month [..]

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