All Articles Tagged - USDCAD

Week Ahead – Crucial ECB and BoJ decisions on the menu

Posted on October 21, 2022 at 11:26 am GMT

A central bank extravaganza lies ahead. The show will kick off with the Bank of Canada meeting, where markets expect another rate increase but are split on the size. Meanwhile in Europe, a triple-barreled hike by the ECB is already locked in, putting the emphasis on the press conference. Finally, the Bank of Japan is unlikely to throw a life jacket to the sinking yen. ECB ready to swing big With inflation running around 10%, the European Central Bank is [..]

Technical Analysis – USDCAD trapped below 1.3800; uptrend intact

Posted on October 21, 2022 at 7:54 am GMT

USDCAD has partially recovered Monday’s pullback as the 1.3800 level proved hard to overcome during the week, limiting bullish moves. Although the RSI and the MACD reflect some caution as the former is lacking direction in the bullish area, and the latter keeps decelerating below its red signal line, the positive trend is still intact above the 20-day simple moving average (SMA). If the bulls manage to pierce through the 1.3800 level, where the 61.8% Fibonacci retracement of the 1.4667-1.2006 downtrend is [..]

Daily Market Comment – Wall Street breaks winning streak as Treasury yields rise

Posted on October 20, 2022 at 8:36 am GMT

Rising Treasury yields weigh on stocks US dollar outperforms all the other majors Canadian inflation data beats forecast Wall Street in the red as yields hit fresh multi-year highs Wall Street closed in the red on Wednesday, breaking its two-day winning streak due to rising Treasury yields and weakness from earnings losers such as Abbott Laboratories more than offsetting strong gains from earnings winners like Netlix. The yield on the 10-year Treasury note hit a 14-year high of 4.18% and [..]

Daily Market Comment – Yen plunge continues; UK inflation returns to double digits

Posted on October 19, 2022 at 8:10 am GMT

Yen extends freefall as traders defy intervention warnings Pound slides after UK inflation returns to double digits Loonie traders await inflation numbers as well Equities extend recovery on better earnings results Intervention warnings intensify as dollar nears 150 yen The US dollar traded slightly lower against most of the other major currencies on Tuesday but rebounded somewhat today. The only currencies against which the greenback gained some ground yesterday was the Japanese yen and the British pound, with the former [..]

Will Canadian CPI inflation revive loonie bulls? – Forex News Preview

Posted on October 18, 2022 at 3:11 pm GMT

September’s CPI inflation prints will be closely watched in Canada on Wednesday at 12:30 GMT. Analysts estimate a third consecutive month of diminishing inflation, but that might not necessarily be enough to push additional rate hikes out of scope. Retail sales will be the next highlight on the calendar on Friday, but don’t expect any fireworks here either. Inflation to ease but stay uncomfortably high The Bank of Canada has raised interest rates incredibly fast by 300bps since March and [..]

Technical Analysis – USDCAD corrects lower after hitting 29-month high

Posted on October 18, 2022 at 1:41 pm GMT

USDCAD has been in a steep uptrend since mid-September when the price managed to forcefully cross above the 1.3222 region. Although the pair has recently spiked higher to a fresh 29-month high, it quickly lost some ground, hinting that the rally could be overstretched. The momentum indicators currently suggest that bullish forces are waning. Specifically, the stochastic oscillator is sloping downwards after posting a bearish cross, while the MACD histogram has retreated beneath its red signal line but remains in [..]

Week Ahead – Inflation data may keep pound in the firing line, China GDP on tap

Posted on October 14, 2022 at 11:22 am GMT

Inflation will dominate the market theme again in the coming week as, after the United States, it will be the turn of others to face their inflation demons. With the risk of recession growing by the day but not a lot changing with the inflation dynamics, UK CPI figures will attract the most attention, while a modest pickup in Japan is unlikely to spur any policy shifts at the Bank of Japan. China will also come under the spotlight as [..]

Technical Analysis – USDCAD retraces after hitting fresh 29-month high

Posted on October 14, 2022 at 7:58 am GMT

USDCAD has been in a steep uptrend since mid-September when the price managed to forcefully cross above the 1.3222 region. Although the pair spiked higher to a fresh 29-month high in the previous daily session, it quickly corrected lower and closed the day with losses, hinting that the rally could be overstretched. The momentum indicators currently suggest that bullish forces are waning. Specifically, the stochastic oscillator is sloping downwards after posting a bearish cross, while the MACD histogram has retreated [..]

Daily Market Comment – Dollar firms as Fed’s hawkish drumbeat gets louder ahead of NFP

Posted on October 7, 2022 at 9:10 am GMT

Fed destroys all hopes of an early pivot even before latest jobs report is out Dollar climbs to one-week high as stocks turn negative again Pound under renewed pressure, yen won’t budge from the 145 level Hawkish Fed takes shine off September jobs report After some very mixed readings on the US economy this week, the latest nonfarm payrolls report will take centre stage today, with investors hoping for some signs of a cooldown in the red-hot labour market. The [..]

Technical Analysis – USDCAD seems to return to gains; nearby resistance eyed for confirmation

Posted on October 7, 2022 at 7:05 am GMT

USDCAD is gaining sustainable ground, finding support at the 1.3505 barrier. The 20- and 50-day simple moving averages (SMAs) are following the upward movement; however, the technical oscillators are weakening their momentum. The MACD is standing beneath its trigger line in the positive area, while the RSI is flattening above the neutral threshold of 50. Traders would be more eager to engage in buying activities if the price manages to surpass the nearby resistance at 1.3840, where the 29-month high is [..]

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