USDCAD

Could OPEC’s output cut shore up oil prices? – Special report

Posted on March 5, 2020 at 4:21 pm GMT

OPEC members tentatively agreed on Thursday to deliver a larger output cut than they initially proposed last month in the face of the coronavirus outbreak. But it is now up to Russia to approve it when it joins the meeting on Friday. While it is almost certain that Moscow will cave in, there is little optimism that the announcement will trigger the much-needed sustainable rally in oil markets even though a short-lived upside correction cannot be ruled out in the near-term. Russial may not be happy, but [..]

Canadian jobs data may flag more rate cuts as loonie skids – Forex News Preview

Posted on March 5, 2020 at 3:11 pm GMT

After the Bank of Canada slashed interest rates this week, expectations are running high that more will follow, and the next clue may come from Canada’s jobs numbers on Friday (13:30 GMT). While the BoC’s bigger-than-expected cut this week was primarily motivated by the virus fallout, there have been a few other trouble spots lurking in the Canadian economy lately, which could weigh on the struggling loonie if they appear to have impacted employment growth in February. Jobs growth probably [..]

Daily Market Comment – Stocks bounce back but virus risks cap dollar gains

Posted on March 5, 2020 at 9:36 am GMT

US data, virus bill, Biden boost lift stocks but sentiment shaky as virus continues to spread Dollar rebound short-lived as more rate cuts expected BoC follows Fed and RBA in cutting rates; are ECB and BoE next? Oil steady as OPEC begins meeting to discuss output cuts Virus stimulus and US politics boost equities Stocks in the US surged overnight as government and central bank action in response to the coronavirus outbreak, as well as a change in fortunes in [..]

Daily Market Comment – Fed fires blanks as emergency rate cut fails to calm markets

Posted on March 4, 2020 at 9:21 am GMT

Fed surprises with emergency 50-bps cut but markets continue to fear the worst US stocks stage turnaround after Joe Biden wins big on Super Tuesday Dollar slumps, yen and gold surge after Fed’s shock rate cut; is BoC next? Fed fails in attempt to soothe market panic The US Federal Reserve shocked markets by slashing its benchmark interest rate by 50 basis points in an emergency meeting on Tuesday as policymakers intervened to calm jittery traders. The decision came just [..]

Bank of Canada to likely cut rates as virus risks grow – Forex News Preview

Posted on March 3, 2020 at 4:39 pm GMT

The Bank of Canada is expected to join the Federal Reserve and Reserve Bank of Australia in cutting interest rates this week as the global wave of central bank action to counter the economic fallout from the coronavirus outbreak begins. The BoC will announce its decision on Wednesday at 15:00 GMT and is widely anticipated to lower its overnight target rate by 25 basis points. Expectations of policy easing have pulled the Canadian dollar to 9-month lows as the virus [..]

Week Ahead – RBA and BoC meet: no virus stimulus yet; US jobs report also in focus

Posted on February 28, 2020 at 1:54 pm GMT

Central banks in Australia and Canada will hold policy meetings next week – the first since the outbreak of the coronavirus escalated into a global crisis. But with policymakers having limited firepower, they will probably maintain a wait-and-see approach until a clearer picture starts emerging about the impact of the virus, whose spread has multiplied several-fold in the past week. Investors will also be waiting anxiously for the latest nonfarm payrolls report out of the United States as they push [..]

Daily Market Comment – Euro and yen smile as Wall Street bloodbath accelerates

Posted on February 28, 2020 at 10:04 am GMT

Global stocks fall apart amid growing fears of a virus-induced recession Yen and euro shine amid the mayhem, dollar and commodity currencies get hammered More de-risking possible today, Chinese PMIs and virus news over the weekend are a huge risk Pandemic fears throw global markets into havoc The worsening outlook for the world economy continues to torment financial markets. The major US stock indices fell by a staggering ~4.5% on Thursday, as investors increasingly price in the worst-case scenario where [..]

Technical Analysis – USDCAD at 8-month high; looks bullish above trendlines

Posted on February 28, 2020 at 8:32 am GMT

USDCAD refused to close below the 200-day simple moving average (SMA) and the supportive trendline last week, staging a remarkable rally instead that led the price above the long-term ascending trendline and to eight-month highs on Friday. The price also pierced the 61.8% Fibonacci of the 1.3663-1.2950 downleg, increasing hopes that more gains could be achieved, with the rising RSI and Stochastics – which have yet to confirm overbought conditions – backing this view as well. Slightly higher, the area around 1.3465 has been [..]

Daily Market Comment – Dollar retreats, stocks in freefall as virus engulfs markets

Posted on February 27, 2020 at 10:14 am GMT

Virus concerns intensify, pushing dollar lower amid mounting expectations for Fed rate cuts Stocks crater, and risk aversion may linger ahead of Chinese PMIs Euro the big winner, capitalizing on dollar’s retreat and defensive inflows Global carnage deepens as virus spreads Worries about the coronavirus continue to plague markets, as every passing day makes it clearer that this crisis won’t blow over soon, and the disruptions initially on supply chains and then on demand could be the ‘black swan’ that [..]

Canadian Q4 GDP eyed ahead of BoC meeting – Forex News Preview

Posted on February 26, 2020 at 2:57 pm GMT

Canada will report GDP numbers for the fourth quarter on Friday (13:30 GMT) when trade tensions and industrial strikes are expected to have ground growth to a near halt. With economic conditions not likely to have improved in the first quarter, the data will be watched carefully by policymakers at the Bank of Canada, who meet next week. In the meantime, the Canadian dollar has stumbled near 4-month lows versus its US counterpart, weighed by weaker oil prices. GDP [..]

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