All Articles Tagged - USDCAD

Bank of Canada to set tightening campaign on hold – Forex News Preview

Posted on March 7, 2023 at 4:24 pm GMT

The Bank of Canada will likely keep its promise to declare a pause in monetary tightening during Wednesday’s policy meeting, although other major central banks are still debating higher rates. The policy announcement could cause more shorting of the battered Canadian dollar, unless policymakers signal a conditional halt, leaving the door open for additional rate increases later in the year. BoC to take break from rate hikes After a record pace of rate hikes, which pushed interest rates from nearly zero to [..]

Technical Analysis – USDCAD consolidates after advance pauses

Posted on March 6, 2023 at 3:52 pm GMT

USDCAD has been attempting a rebound after breaking above its 50-day simple moving average (SMA) in late February. Nevertheless, the pair has been trading sideways in the past few daily sessions after its advance got rejected at the 1.3664 territory. The momentum indicators currently suggest that near-term risks are tilted to the upside. Specifically, the RSI is currently above its 50-neutral mark, while the MACD histogram is strengthening above both zero and its red signal line. Should buying pressures persist, [..]

Weekly Technical Analysis – AUDUSD, USDCAD, USDJPY

Posted on March 6, 2023 at 11:59 am GMT

This week the focus of attention will be on the RBA and BoC policy meetings as well as on the NFP report so, how may AUDUSD, USDCAD and USDJPY react? RBA decision → AUDUSD Early on Tuesday, the Reserve Bank of Australia (RBA) policy meeting will take place and markets give a 75% probability for a quarter-point rate hike. AUDUSD is still developing beneath the medium-term uptrend line and the 200-day simple moving average (SMA), suggesting more losses may come. BoC decision → USDCAD The Bank of Canada (BoC) interest rate decision will come [..]

Is it time for Fed Chair Powell to appear in a hawkish suit? – Forex News Preview

Posted on March 6, 2023 at 7:22 am GMT

Market pricing about the Fed’s future course of action has dramatically changed lately, following a streak of upbeat US economic data and hotter-than-expected inflation numbers for January. Several Fed officials have become more vocal about the need for more aggressive action hereafter, but a big question is whether Fed Chair Powell has ditched his disinflationary view following the data. With that in mind, investors will closely watch his testimony before Congress on Tuesday and Wednesday. Streak of January data boosts [..]

Technical Analysis – USDCAD drifts higher but caution required

Posted on March 3, 2023 at 12:45 pm GMT

USDCAD closed marginally below the 50-period simple moving average (SMA) on the four-hour chart earlier today, increasing the odds for more downside in the coming sessions following the break below the protective 20-period SMA. While the pair is currently trying to recoup its latest decline, traders will keep a close eye on the 23.6% Fibonacci retracement of the 1.3272-1.3664 upleg at 1.3570. If the pair fails to bounce back above that level, selling forces could strengthen towards the 38.2% Fibonacci of 1.3515. [..]

Week Ahead – Will the BoJ shock markets ahead of US payrolls?

Posted on March 3, 2023 at 11:21 am GMT

Market participants are in for a wild ride, as the coming week is loaded with promising events. The ball will get rolling with central bank meetings in Australia and Canada. Those will serve as appetizers for the Bank of Japan’s decision, which might be a close call, feeding volatility in the yen. In the US, the latest employment report and testimony by the Fed chief before Congress will decide whether the dollar’s recovery still has miles left in the tank. [..]

Technical Analysis – USDCAD loses steam within a trading range

Posted on March 3, 2023 at 8:32 am GMT

USDCAD has been on the sidelines over the last four months as 1.3700 seems to be a real struggle for the bulls. In the near-term, the market is losing steam but the bounce off 1.3225 remains on cards. Technically, the RSI is changing direction to the downside and towards its 50 neutral mark, while the stochastics are dropping from the overbought region after the %K and the %D lines posted a bearish cross. Also, the 20- and the 50-day simple moving averages (SMAs) recorded a [..]

Daily Market Comment – Dollar slides on Chinese data, euro awaits inflation numbers

Posted on March 2, 2023 at 9:25 am GMT

Dollar slips as Chinese PMIs spark risk-on mood But pares losses after ISM manufacturing PMI data Euro traders await Eurozone inflation numbers Rising Fed hike bets hurt Wall Street Dollar drops on China PMIs, but Fed hike bets increase on ISM PMI The US dollar traded lower or unchanged on Wednesday, losing the most ground against the kiwi, the euro and the aussie in that order. Today, it is in a recovery mode against all the other majors. The greenback [..]

Daily Market Comment – Sentiment improves on upbeat Chinese PMIs, dollar sags

Posted on March 1, 2023 at 10:11 am GMT

Strong China factory data boosts equities but rate hike fears limit gains Dollar pulls back, euro climbs as ECB starts QT Aussie and loonie up on China optimism but soft GDP numbers weigh Markets buoyed as China reopening boost starts to materialize After ending February on a sour note, equity markets started the new month in a cheerier mood with the help of some much-needed positive headlines from China. Manufacturing activity in the world’s second largest economy grew at the [..]

Could the US ISM surveys deflate the ballooning Fed expectations? – Forex News Preview

Posted on March 1, 2023 at 9:25 am GMT

We are enjoying the rare occasion of the US labour market data, predominantly the non-farm payrolls figure, not being published in the first few sessions of the new month. As such, the market will have to be content with the remaining data and predominantly the mighty ISM business surveys. It will actually be the last release of this dataset before the March Fed meeting. With the market moving aggressively past the Fed’s dot plot projections, could these data points force [..]

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