All Articles Tagged - USDCAD

Market Comment – Market craves weaker US data

Posted on June 4, 2024 at 8:09 am GMT

Monday’s weaker ISM survey pushes the dollar lower Euro/dollar rallies to a 3-month high ahead of the ECB BoC could announce a rate cut tomorrow; loonie may suffer Oil tanks as bearish factors multiply Dollar gets on the backfoot A rather busy week for the US economy started on the back foot for the US dollar yesterday as the ISM manufacturing survey edged lower in the sub-50 territory, pointing to a deteriorating outlook for this sector. Interestingly, the drop in [..]

Dollar traders lock gaze on NFP report – Preview

Posted on June 4, 2024 at 7:58 am GMT

Fed sticks to ‘higher for longer’ mentality PMIs pose downside risks to nonfarm payrolls But point to sticky wage growth The data comes out on Friday, at 12:30 GMT US inflation slows but Fed signals patience Although the latest CPI data revealed that inflation in the US has resumed its downtrend, Fed officials have been continuously signaling patience about when they may start lowering interest rates, with some of the ultra-hawks, like Minneapolis Fed President Neel Kashkari, even leaving the [..]

Weekly Technical Outlook – USDJPY, EURUSD, USDCAD

Posted on June 3, 2024 at 12:23 pm GMT

USDJPY continues to trade with resilience near April’s bar as forecasts point to robust US jobs data EURUSD holds within caution area as the ECB prepares to cut interest rates USDCAD directionless despite a probable rate cut in Canada this week Nonfarm payrolls, ISM business PMIs –> USDJPY The Fed is not expected to cut interest rates before September according to futures markets, and although the wolves of Wall Street are not fond of this scenario, the US dollar can enjoy more winning moments [..]

Bank of Canada edges closer to rate cut but will it be in June? – Preview

Posted on June 3, 2024 at 9:31 am GMT

Canadian inflation has been moving in right direction this year Investors have assigned a more than 80% probability of a June cut But will the BoC move before the Fed; decision is due Wednesday, 13:45 GMT The race to cut may be reaching the final hurdle As the race to cut rates reaches fever pitch, much of the attention has been centred on the US Federal Reserve and the European Central Bank. However, the Bank of Canada may well steal [..]

Week Ahead – ECB rate cut might get eclipsed by BoC surprise and NFP report

Posted on May 31, 2024 at 10:17 am GMT

ECB set to slash rates on Thursday, focus on forward guidance But will the BoC take the lead when it meets on Wednesday? US jobs report eyed on Friday as Fed unyielding on cuts OPEC+ might extend some output reductions into 2025 ECB poised to cut rates, but what’s next? The path by central banks to lower borrowing costs has been far from smooth, but it seems that the European Central Bank will be among the first to reach its [..]

Technical Analysis – USDCAD meets uptrend line again and again

Posted on May 31, 2024 at 7:32 am GMT

USDCAD fails to climb above 1.3740 Momentum oscillators show contradicting signs USDCAD has been rebounding off the medium-term ascending trend line over the last couple of weeks, remaining in a positive territory. However, the pair is also finding strong resistance around the 1.3740 barricade with the short-term simple moving averages (SMAs) suggesting a potential bearish crossover. The technical oscillators are showing some mixed signs. The RSI is crossing the 50 level to the downside, while the stochastic oscillator is pointing [..]

Technical Analysis – USDCAD pulls back but diagonal line still stands

Posted on May 27, 2024 at 12:40 pm GMT

USDCAD attempts to test the uptrend line Momentum indicators remain cautiously tilted to the downside USDCAD had an aggressive selling interest after the pullback from the 1.3740 resistance level, meeting the 20- and the 50-day simple moving averages (SMAs) again. The pair is still holding above the medium-term rising trend line, but the technical oscillators are indicating more decreases. The RSI is flattening near the neutral level of 50, while the stochastic is heading south, posting a bearish crossover within [..]

Technical Analysis – USDCAD eases slightly after bullish rally

Posted on May 24, 2024 at 10:37 am GMT

USDCAD surpasses 20- and 50-day SMAs Stochastics and RSI suggest neutral move USDCAD was creating an impressive bullish rally over the previous four days, following the bounce off the 1.3590 support level, surpassing the 20- and the 50-day simple moving averages (SMAs). Technically, the RSI indicator is moving horizontally above the neutral threshold of 50 and the stochastic oscillator is turning down in the overbought region, mirroring the latest weakness in prices. If the buying interest persists, immediate resistance could [..]

Week Ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Posted on May 24, 2024 at 10:36 am GMT

Dollar traders lock gaze on core PCE index Eurozone CPIs in focus as June cut looms Tokyo CPIs may complicate BoJ’s policy plans Aussie awaits Australian CPIs and Chinese PMIs Will PCE data break the “higher for longer” mantra? The US dollar stabilized this week, recovering a small portion of the losses it posted after the CPI data revealed that US inflation resumed its downtrend in April. What may have allowed the dollar to stop bleeding were comments by [..]

Technical Analysis – USDCAD’s upturn is still lackluster

Posted on May 21, 2024 at 8:12 am GMT

USDCAD pivots gently higher but still constrained between trendlines A decisive bounce above 1.3745 needed for fresh buying Canadian CPI scheduled for release at 12:30 GMT; Fed speakers on the agenda too USDCAD has been tip-toeing higher since its downward pattern that started after April’s peak stalled near the 1.3588 level last week. Traders remain skeptical near the 1.3630 barrier and the 50-day SMA, as reflected by the soft price momentum. Interestingly, the 61.8% Fibonacci retracement of the November-December 2023 downleg is in [..]

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