USDCAD

Daily Market Comment – Dollar firms, stocks dive again as US virus cases soar

Posted on April 1, 2020 at 8:41 am GMT

Risk sentiment sours again on mounting virus fallout, pulling stocks lower Manufacturing PMIs heighten recession fears; US ISM PMI next in focus Fed tries to ease dollar funding pressure but unable to keep currency down for long Stocks head south as virus panic returns It was a poor start to the second quarter for stock markets around the world as the growing coronavirus pandemic shows no sign of slowing, with the number of cases globally shooting past 800,000 yesterday. Stocks [..]

Technical Analysis – USDCAD forms a bullish flag pattern; 1.4200 nearby resistance eyed

Posted on March 31, 2020 at 8:21 am GMT

USDCAD has been congested within a downward-sloping channel on the four-hour chart over the past two weeks that seems to be part of a bullish flag formation. Technically, the pattern is a positive trend signal that the price will resume its upward direction once it breaks above the flag. The fact that the price has jumped above the middle Bollinger band which is also the 20-period simple moving average (SMA) suggests that the market could push towards the upper band [..]

Daily Market Comment – Stocks rally despite recessionary US data, is the bottom in?

Posted on March 27, 2020 at 9:17 am GMT

US jobless claims signal the economy is in recession, but stocks gain ~6% Is this the beginning of a new uptrend, or just a bear market rally? In FX, dollar continues to sink as liquidity pressures ease, but yen stays in demand Markets shrug off horrible US jobless numbers A record-shattering 3.3 million Americans filed for unemployment benefits last week, more than quadrupling the previous record and providing the clearest indication to date that the US is headed for a [..]

Technical Analysis – USDCAD’s pullback from 50-month high stalls at mid-Bollinger band

Posted on March 27, 2020 at 9:06 am GMT

USDCAD is currently finding some footing at the mid-Bollinger band, which is encapsulated between the 1.4013 level – that being the 38.2% Fibonacci retracement of the up leg from 1.2951 to 1.4667 – and the inside swing high of 1.3994, after pivoting from a multi-year high of 1.4667. Despite the short-term oscillators displaying a negative mode for now, the negative momentum backing the retracement in the price seems to have weakened, with the RSI stalling above its neutral mark and [..]

Daily Market Comment – Stocks roar back as Congress reaches deal on rescue package

Posted on March 25, 2020 at 10:11 am GMT

Global stocks rebound sharply as Democrats and Republicans agree on $2 trillion stimulus package But has the market truly bottomed, or is this another dead cat bounce? In FX, risk-taking is back; commodity currencies recover as dollar and yen retreat Is gold turning the corner? Epic turnaround for stocks Global markets staged a heroic recovery on Tuesday. The Dow Jones climbed almost 11.4% to record its strongest day since 1933 as investors took heart that the US Congress would [..]

Daily Market Comment – Fed drops hydrogen bomb on markets, wounds dollar

Posted on March 24, 2020 at 11:23 am GMT

Dollar inches down as Fed goes all out, announces unlimited QE and expands purchase universe Wall Street closes lower, unimpressed by Fed – but set to recover today as Congress moves closer to a deal In broader FX market, the retreating dollar lifts all other boats Fed drops equivalent of hydrogen bomb on markets The Federal Reserve went ‘all in’ yesterday, promising to buy unlimited amounts of Treasury bonds and mortgage backed securities (MBS) to stabilize financial markets and negate [..]

Technical Analysis – USDCAD flirts with 20-SMA, signaling some losses in near term

Posted on March 24, 2020 at 7:54 am GMT

USDCAD is on course to slip beneath the short-term 20-period simple moving average (SMA) creating a neutral mode after the sell-off from the more than four-year high of 1.4670. According to the momentum indicators, the stochastic oscillator is diving towards the oversold zone, while the RSI is turning lower in the positive area. Immediate support is being provided by the 23.6% Fibonacci retracement level of the up leg from 1.3200 to 1.4670, around 1.4320, which stands near the 1.4330 support [..]

Daily Market Comment – Stocks slammed as Congress plays politics

Posted on March 23, 2020 at 10:51 am GMT

Global markets tank again amid a cascade of worrying virus developments US fiscal package stuck in the Senate, igniting fears of a severe delay Yen leads FX market, kiwi sags as RBNZ launches QE, dollar resilient Wall Street futures in the red as Congress dithers and delays Financial markets remain in a state of panic, with world stocks tanking on Monday to extend heavy losses from Friday, as a worsening pandemic and mounting national lockdowns leave traders no choice but [..]

Daily Market Comment – Markets calmer after deluge of stimulus; dollar retreats

Posted on March 20, 2020 at 10:01 am GMT

Stocks edge higher after a savage week as emergency responses stepped up Dollar pulls back but dash for cash likely not over just yet Pound and aussie bounce higher after BoE and RBA announce QE Stocks stage a comeback; will it last? Global stocks enjoyed a much-needed reprieve from the fierce selling pressure of the past two weeks on Friday as the flurry of central bank and government interventions finally appeared to have some effect in relieving investor anxiety. All [..]

Daily Market Comment – Dollar surges amid race for cash; stocks tank again

Posted on March 19, 2020 at 9:48 am GMT

Virus panic drives investors to cash, pushing dollar to 3-year high No end in sight to stock market rout despite plethora of stimulus ECB and RBA hold emergency meetings Yen and gold struggle; bonds suffer rare sell-off Pound crashes to 1985 low; aussie, kiwi and loonie also sink Cash is king The market turmoil over the growing coronavirus pandemic continues to deepen with investors ramping up their stockpiling of cash, with the panic sell-off leaving no casualties, not even traditional [..]

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