All Articles Tagged - USDCAD

Week Ahead – BoC may hike one final time; Will flash PMIs spread gloom or optimism?

Posted on January 20, 2023 at 10:20 am GMT

As 2023 gets underway, so do the central bank meetings and the Bank of Canada will be the next after the BoJ to announce its first policy decision of the year. Meanwhile, investors will be nervously awaiting the first PMI readings of 2023 next week as they juggle to reach a consensus about the recessionary risks. In the United States, there will additionally be the advance GDP estimates for the final quarter of 2022, as well as PCE inflation data. [..]

Technical Analysis – USDCAD battles with 50-day SMA

Posted on January 20, 2023 at 8:48 am GMT

USDCAD had been in an uptrend since March, posting a fresh 30-month high of 1.3976 before experiencing a downside correction. In the short-term, the pair attempted to edge higher after breaking above its sideways pattern, but its advance got rejected at the 50-day simple moving average (SMA). The momentum indicators currently suggest that near-term risks remain tilted to the downside. Specifically, the RSI has failed to cross above the 50-neutral mark, while the stochastic oscillator is set to post a bearish [..]

Canadian CPI might dip again, boost BoC odds of a pause – Forex News Preview

Posted on January 17, 2023 at 7:19 am GMT

Inflation in Canada might have peaked but the latest CPI report will be watched on Tuesday (13:30 GMT) as the decline appears to have stalled. The Bank of Canada has hinted that interest rates may not need to rise again, but after the latest big jump in employment, a not-so-soft CPI print could further dash hopes of a pause. The data will be vital for the Canadian dollar ahead of both the BoC and Fed decisions in the next couple [..]

Technical Analysis – USDCAD turns bearish in short-term after recent slump

Posted on January 13, 2023 at 8:11 am GMT

USDCAD broke the short-term sideways range to the downside in the preceding sessions, holding beneath the 1.3400 level. According to the RSI, the market could maintain the latest downside momentum as the indicator is negatively sloped below its neutral threshold of 50, though the fast Stochastics suggest that the market is located in oversold territory, and therefore, some weakness is possible. The MACD is still extending the negative structure beneath its trigger and zero lines. On the upside, the price [..]

Technical Analysis – USDCAD falters after US CPI; key support holds

Posted on January 12, 2023 at 3:05 pm GMT

USDCAD faced renewed selling pressure on Thursday after US CPI inflation data backed the case for a softer Fed rate increase in February. Despite the flash slide to 1.3346, the crucial resistance-turned-support trendline from August 2021 managed to calm selling forces at 1.3370 once again. Yet the bears may not abandon the battle according to the momentum indicators. The RSI is clearly decelerating below its 50 neutral mark, while the MACD seems to have started a new bearish wave below zero, suggesting that [..]

Daily Market Comment – Markets rally after softer wage growth tempers Fed bets

Posted on January 9, 2023 at 10:05 am GMT

Another solid jobs report in December but easing wages raise soft landing hopes Wall Street and global equities rally as China reopening adds to optimism Commodities climb too as dollar approaches 7-month lows Markets cheer US data pointing to slowing economy Friday’s flurry of data produced a distinguishingly mixed picture on the US economy but for the markets, it was an all-round positive day as traders grew more confident that inflationary pressures are ebbing. The first piece of good news for [..]

Technical Analysis – USDCAD maintains neutral bias in the near term

Posted on January 5, 2023 at 1:59 pm GMT

USDCAD has been on the sidelines over the last month as the 1.3470 support seems to be a real struggle for the bears as well as the 1.3700 resistance for the bulls. The MACD is touching the zero level with weak momentum, while the stochastic is easing towards the 20 level. Should the price close comfortably above the 50-day simple moving average (SMA) (140.23), traders could add more value to the pair, pushing the market up to the 20-day SMA at 1.3590. [..]

Could Canadian data steal the spotlight from US jobs report? – Forex News Preview

Posted on January 4, 2023 at 9:23 am GMT

The first week of the new trading year tends to be very busy with data releases, but the market’s attention usually falls on the US employment report, non-farm payrolls in particular. The Canadian labour market statistics tend to stay away from the spotlight, but nevertheless remain significant for overall market sentiment. Especially as the Bank of Canada is hosting its first meeting for 2023 in just three weeks on January 25 – the Bank of Japan meets a week earlier on January 18. Labour [..]

Technical Analysis – USDCAD stuck in tight range, downside capped by 50-day SMA

Posted on December 29, 2022 at 4:02 pm GMT

USDCAD has been in an uptrend since March, generating a fresh 30-month high of 1.3976 before experiencing a moderate pullback. In the short-term, the pair is trading within a range as the 50-day simple moving average (SMA) has repeatedly acted as a strong floor. The momentum indicators currently suggest that near-term risks are tilted to the downside Specifically, the RSI has dipped below its 50-neutral mark, while the MACD histogram remains below its red signal line in the positive region. Should [..]

Week Ahead – NFP and Fed minutes to kickstart the New Year as dollar languishes

Posted on December 29, 2022 at 3:53 pm GMT

Markets will slowly begin to return to normal in the first trading week of 2023, with a number of top-tier releases on the way to liven things up after the holiday lull. The latest US jobs report will be headlining the economic agenda, while the minutes of the December FOMC meeting is expected to attract more attention than usual given the absence of Fed speakers since the event. Flash inflation readings out of the Eurozone and Canadian employment figures will [..]

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