All Articles Tagged - USDCAD

Canada likely added more jobs in July, but will the data awaken the loonie? – Preview

Posted on August 1, 2023 at 2:34 pm GMT

Employment numbers for July are due out of Canada on Friday (12:30 GMT), which will be the last before the Bank of Canada’s next policy meeting in September. Jobs growth has moderated somewhat in recent months, which might explain why the unemployment rate has started to edge up. The picture in July is unlikely to have been any different so the data might not have much of an impact on rate hike expectations. The Canadian dollar might therefore take its [..]

Market Comment – Stocks rally but dollar holds firm on soft PCE inflation

Posted on July 31, 2023 at 9:04 am GMT

Expectations of further Fed rate hikes evaporate after dip in core PCE Stocks rejoice but dollar stays in demand as yen’s comeback bid falters RBA decision coming up, BoE next on Thursday ahead of US jobs report Fed pause seen as a certainty after core PCE eases The markets’ conviction that the Fed’s July rate hike was a one and done got a boost on Friday after the central bank’s favourite inflation metric fell more than expected, underscoring the view [..]

Week Ahead – NFP report to probably steal the limelight from BoE and RBA

Posted on July 28, 2023 at 10:29 am GMT

The Bank of England and Reserve Bank of Australia will wrap up the summer central bank decisions in the coming week, although the US jobs report may attract the most attention. The ISM PMIs will be the other highlights in the United States, while employment numbers are due in Canada and New Zealand too. Over in Europe, the agenda will be dominated by flash inflation and GDP data. Oil will also be in the spotlight as the OPEC+ alliance holds [..]

Technical Analysis – USDCAD hopes for a new bullish correction

Posted on July 28, 2023 at 8:19 am GMT

USDCAD has been in a range for the second consecutive week, unable to extend its rebound off a nine-month low of 1.3115 above the nearby resistance of 1.3225. The odds for a bullish extension are increasing, given the positive slope in the momentum indicators. But with the RSI fluctuating below 50 and the MACD remaining within the negative zone, any improvement may be brief. If the price sustains today’s bullish move above the 20-day SMA and 1.3225, the falling 50-day simple moving [..]

Technical Analysis – USDCAD downward trend continues; a new 2023 low is on the cards

Posted on July 21, 2023 at 6:47 am GMT

USDCAD is moving sideways today, trading a tad above the 2023 low. The bearish trend that commenced since the March 10, 2023 peak remains dominant in this currency pair. In addition, a series of lower lows and lower highs is currently in place with the bears aiming for the next trough to take place below the June 27, 2023 low of 1.3116. With the Average Directional Movement Index (ADX) confirming the presence of a muted bearish trend in the market, [..]

Daily Market Comment – Euro on fire as dollar sags ahead of US data, earnings

Posted on July 18, 2023 at 9:18 am GMT

Euro hits 17-month high before ECB’s Visco knocks it lower Bruised dollar sets sights on US retail sales as Treasury yields resume slide Equities mixed despite China’s aim to boost consumption; earnings awaited Euro leads charge against US dollar The post-CPI headache for the US dollar is showing no signs of receding as speculation about monetary policy divergence continues to intensify, with the euro being the biggest winner in this latest phase. The single currency briefly surged to a 17-month [..]

Technical Analysis – USDCAD consolidates after rebound pauses

Posted on July 17, 2023 at 2:44 pm GMT

USDCAD had begun another round of weakness since July 7, tumbling to a fresh 10-month low of 1.3091 last Friday. However, the pair bounced off strongly from its recent lows and has now entered a consolidation phase just shy of its 50-period simple moving average (SMA). The momentum indicators currently suggest a cautiously bullish near-term bias. Specifically, the MACD is approaching zero after crossing above its red signal line, while the RSI is holding marginally above its 50-neutral mark. Should [..]

Week Ahead – Focus on China GDP and US retail sales, more CPI data on tap

Posted on July 14, 2023 at 10:39 am GMT

Inflation data will continue to dominate the economic agenda in the coming week, although the spotlight will probably fall on Chinese GDP figures as well as US retail sales. The countries reporting CPI numbers include Canada, New Zealand, Japan and the United Kingdom. With inflation seemingly coming under control in America, investors will be on the lookout for any divergence in other countries’ progress. However, sentiment will likely be shaped by growth indicators from the world’s two largest economies as [..]

Technical Analysis – USDCAD lower again; stochastic could dictate the next move

Posted on July 12, 2023 at 7:49 am GMT

USDCAD’s recovery proved very short-lived as the pair has been dropping aggressively over the past four sessions. It is currently hovering inside the busy 1.3190-1.3225 area with the bears probably keen on continuing the recent series of lower highs and lower lows. The next trough has to occur below the 1.3116 low recorded on June 27 in order to keep this structure intact and valid. The continued convergence of the 100- and 200-day simple moving averages (SMAs) supports the possibility [..]

Daily Market Comment – Dollar extends fall ahead of US inflation data

Posted on July 12, 2023 at 7:39 am GMT

US dollar beaten up as US inflation report looms Narrowing yield differentials turbocharge the yen RBNZ takes the sidelines, BoC takes the central bank torch Wall Street and gold gain on sliding Treasury yields Dollar traders are positioning for a soft US CPI report The US dollar continued tumbling on Tuesday and during the Asian session Wednesday, losing ground against all the other major currencies. Perhaps traders are positioning for another soft US CPI report later today, a view that [..]

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