All Articles Tagged - USDCAD

Week Ahead – RBA next to hike, UK might avoid a recession (for now)

Posted on February 3, 2023 at 12:56 pm GMT

After the past week’s central bank bonanza, things will quieten down in the coming days, although not completely, as the Reserve Bank of Australia will keep the rate hike theme running. On the data front, the highlights will be Canada’s employment report and the first look at UK GDP in the final quarter of 2022. US indicators will be sparse, giving the dollar little to go on as it bounces back from the knock it took from the not-so-hawkish Fed [..]

Technical Analysis – USDCAD rebounds off 3-month low; looks oversold

Posted on February 3, 2023 at 8:10 am GMT

USDCAD has declined considerably after touching the 1.3700 round number, losing more than 3%. During Thursday’s trading session, it posted an almost three-month low of 1.3260, while it is currently not far above that nadir. The negatively aligned Tenkan- and Kijun-sen lines serve as a testament to the negative short-term momentum that is in place. The Chikou Span, though, is signaling a potentially oversold market; a near-term reversal should thus not be ruled out. The RSI is heading north in the negative [..]

S&P500 short-term correlations hold surprises – Special Report

Posted on February 1, 2023 at 7:13 am GMT

It has been a relatively quiet week, but it is highly probable that this calmness will be broken soon. The numerous central bank meetings, starting with the Fed gathering on Wednesday afternoon, and the busy data calendar promise an eventful period. Market correlations are used extensively by market participants to depict the current state of the market. Do long-term correlations stand or has something changed in the market recently? By using daily data, we calculated the latest 3-month daily correlation, [..]

Daily Market Comment – Dollar slides ahead of US GDP data, BoC signals likely pause

Posted on January 26, 2023 at 9:20 am GMT

Dollar continues to slide on Fed pivot bets US GDP numbers for Q4 enter the limelight More ECB hawks flap their wings Loonie slides as BoC says it will likely stop raising rates BoC pause adds to bets that the Fed will follow suit The US dollar traded lower against all but two of the other major currencies on Wednesday, with the exceptions being the Canadian and New Zealand dollars. With no major US data to drive the US dollar, [..]

Daily Market Comment – US business activity shrinks, BoC decision up next

Posted on January 25, 2023 at 9:15 am GMT

US continues to contract while Eurozone returns to growth Aussie gains on accelerating inflation BoC expected to deliver one last hike Wall Street ends mixed, awaits more earnings results PMIs confirm divergence between ECB and Fed interest rate bets Although euro traders were not overly impressed by yesterday’s preliminary PMI data suggesting that the Eurozone returned to growth in January, the contrast to the US numbers that came out later in the day may have allowed euro/dollar to stay in [..]

Technical Analysis – USDCAD bears seek dominance as BoC rate decision looms

Posted on January 25, 2023 at 8:43 am GMT

USDCAD has been moving sideways over the past two weeks, building a floor around 1.3370, but the bears seem determined to lead their market on their own way ahead of the BoC rate decision today at 15:00 GMT. With the RSI pulling below its 50 neutral mark and the MACD sliding back below its red signal line within the negative area, downside moves are more likely than upside ones in the coming sessions. The stochastic oscillator is also on a decline, though [..]

Will the BoC press the hike button one more time? – Forex News Preview

Posted on January 23, 2023 at 4:36 pm GMT

After signaling that it will be considering whether interest rates need to rise further on a meeting-by-meeting basis, the Bank of Canada was seen as the first major central bank to end its tightening crusade. However, the stellar employment numbers for December sparked speculation that another quarter-point hike may be delivered at this week’s gathering, on Wednesday, before the curtain falls on rate hikes. Will the BoC meet those expectations? And if so, how will the Canadian dollar react? Inflation [..]

Technical Analysis – USDCAD battles with upward sloping trendline

Posted on January 23, 2023 at 2:09 pm GMT

USDCAD remains under pressure as it is currently testing the June 6 upward trendline. It trades well inside a developing 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 momentum indicators are sending contradictory signals. The Average Directional Movement Index (ADX) appears uninterested in the recent move while the RSI remains below 50 and thus seems supportive of further bearish episodes. Interestingly, the [..]

Daily Market Comment – Fed signals downshift, lifting Wall Street, but dollar sags

Posted on January 23, 2023 at 10:47 am GMT

Fed officials warm up to 25-bps rate hikes, cheering equity markets But dollar takes a hit, stands firm only against sinking yen Euro powers on as ECB hawk puts foot down, flash PMIs eyed Fed enters blackout with a nod to slower hikes Trading got off to a quieter start on Monday, as China and other major markets in Asia are closed for the Lunar New Year celebrations, and Friday’s risk rally lost some steam, but the positive sentiment continued [..]

Technical Analysis – USDCAD edges lower despite move higher by stochastic oscillator

Posted on January 20, 2023 at 1:54 pm GMT

USDCAD is edging lower as the trifecta of the September 14 upward sloping trendline and the 50- and 100-day simple moving averages (SMAs) proved to be obstacles that were too strong for the bulls’ liking. The stochastic oscillator is supportive of the recent move higher and broke above its moving average, but the price action has not followed through yet. With both the RSI and Average Directional Movement Index (ADX) appearing uninterested in the recent bullish move, the bulls must [..]

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