All Articles Tagged - USDCAD

Week Ahead – US ISM PMIs and Eurozone CPI data enter the spotlight

Posted on February 24, 2023 at 11:04 am GMT

Following a relatively busy week, the calendar becomes lighter next week. However, that doesn’t mean there are no important economic releases on the agenda. On the contrary, with market participants trying to figure out how many more rate hikes the US economy can withstand, they may pay extra attention to the ISM PMIs for February. Also, with most ECB policymakers arguing that more 50bps worth of rate hikes are needed to tame inflation, the Eurozone’s preliminary CPI numbers for February [..]

Technical Analysis – USDCAD improves above the descending triangle

Posted on February 24, 2023 at 8:04 am GMT

USDCAD advanced above the descending triangle, surpassing the 1.3520 resistance level; however, the RSI indicator is moving sideways above the neutral threshold of 50 and the MACD oscillator is moving slightly higher above its trigger and zero lines, but with weak momentum. The 20- and the 50-day simple moving averages (SMAs) suggest a potential bullish crossover in the next few sessions. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 1.3700 psychological mark. [..]

Technical Analysis – USDCAD tests the upper boundary of the broadening wedge

Posted on February 23, 2023 at 2:10 pm GMT

USDCAD is hovering around 1.3550 today following a decent move from the February 14 low. The pair tested the support set by the June 6 upward sloping trendline twice in February, but failed to close below it. It continues to trade inside a wide descending broadening wedge. This type of pattern tends to break upwards, but its performance improves significantly after a failed breakout in either direction. In the meantime, the Average Directional Movement Index (ADX) managed to break above [..]

Daily Market Comment – Dollar extends gains after PMIs, awaits Fed minutes

Posted on February 22, 2023 at 9:12 am GMT

Dollar strengthens as better PMIs add to Fed hike bets Eurozone and UK PMIs also surprise to the upside Equities and risk-linked currencies feel the heat of hike bets Better PMIs fuel Fed hike bets and the dollar, Fed minutes on tap The dollar traded higher against all but one of the other major currencies yesterday, although it is trading mixed today. The only currency against which the greenback lost ground was the British pound. Following a streak of upbeat [..]

Technical Analysis – USDCAD posts gains near 1.3500 and ahead of crucial resistance

Posted on February 17, 2023 at 7:56 am GMT

USDCAD has been overperforming over the last three days and is currently hitting the medium-term descending trend line of the symmetrical triangle. The pair surpassed above the 20- and 50-day simple moving averages (SMAs) with the next obstacle coming from the 1.3520 resistance level. The RSI is heading north above the neutral threshold of 50, while the MACD is moving sideways above its trigger line and below the zero level. To the upside, there is immediate resistance just above the [..]

Daily Market Comments – Risk appetite wanes as yields keep climbing

Posted on February 10, 2023 at 10:13 am GMT

Wall Street headed for weekly losses as hawkish Fed talk pushes up yields But dollar mixed as investors await more clues on inflation Yen gains on BoJ nomination reports, oil jumps as Russia cuts output Recession fears intensify as yield inversion deepens Equity markets look set to end the week on a sour note as investors finally seem to be heeding the message from the Fed that the rate-hike cycle has some way to go following a series of hawkish [..]

Technical Analysis – USDCAD’s upside could be tested

Posted on February 10, 2023 at 8:37 am GMT

USDCAD has been on the sidelines this week, constrained between the familiar 1.3450 resistance and key upward-sloping line from August 2021 at 1.3400. The technical picture is leaning softly to the bullish side as the RSI is flattening slightly above its 50 neutral mark. Meanwhile, the MACD is gradually recovering above its red signal line but within the negative zone, while the Stochastic oscillator has already reached its 80 overbought level, reflecting fading upside pressures ahead of the Canadian employment report. Nevertheless, [..]

Is the dollar staging a comeback? – Special Report

Posted on February 8, 2023 at 3:11 pm GMT

Following last week’s robust US data, the dollar surged against all its major counterparts, gaining the most against the risk-linked currencies aussie and kiwi. Investors revised up their expectations with regards to the Fed’s future course of action, admitting for the first time that they were probably wrong in pricing in a lower peak in interest rates and around 50bps worth of rate cuts later this year. Does this mean that the US dollar is staging a solid comeback? Dollar [..]

What will the Canadian jobs report mean for the loonie? – Forex News Preview

Posted on February 7, 2023 at 1:48 pm GMT

The first Canadian employment report for 2023 will be published on Friday at 13:30 GMT and may not receive as much attention as usual. The Canadian dollar has been losing ground versus the US dollar recently, as the Bank of Canada (BoC) recently signaled that it may have lifted interest rates for the final time during the current tightening cycle, whilst the Federal Reserve has a couple more planned. Canada’s labor market expected to lose steam However, the jobs data will still be closely monitored by [..]

Daily Market Comment – Caution ahead of Powell after RBA’s hawkish drumbeat

Posted on February 7, 2023 at 10:21 am GMT

Equity markets struggle to get back on their feet after hawkish Bostic and RBA Dollar holds near one-month highs, aussie jumps as RBA flags more rate hikes Yen perks up on wage data, gold firmer ahead of Biden’s State of the Union speech Stocks make limited headway as Powell looms large Trading got off on a somewhat steadier note on Tuesday, with some equity markets turning positive, while the US dollar’s rebound appeared to run out of steam. But the [..]

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