All Articles Tagged - USDCAD

Will Canadian employment data help the loonie to strengthen? – Forex News Preview

Posted on October 4, 2022 at 12:59 pm GMT

The Canadian employment data that will be released on Friday at 12:30 GMT will be the main focus for the loonie. Another dismal report in September could boost the likelihood of a rate increase of only 25 basis points at the next meeting. This is because the Canadian economy has been shedding employment for the past three months, which is the opposite of what was anticipated. But even if that were to happen, it is likely that the consensus will stay put at 50 [..]

Week Ahead – RBA and RBNZ to weigh 50-bps hikes but NFP report to set the mood

Posted on September 30, 2022 at 10:22 am GMT

The antipodean central banks will kick off the new month with their October policy decisions, but the latest jobs report out of the US could steal the limelight amid the never-ending anticipation of when the Fed will reach peak hawkishness. Following the latest panic in the markets and the renewed rush to buy US dollars, the reserve banks of Australia and New Zealand might be more inclined to maintain their aggressive pace of tightening and not ease up just yet. [..]

Technical Analysis – USDCAD curbs exponential growth; support at 1.3600

Posted on September 30, 2022 at 6:56 am GMT

USDCAD switched to consolidation after its exponential advance above a bullish channel topped at 1.3831. Of note, the area coincides with the 61.8% Fibonacci retracement of the March 2020 – June 2021 downtrend. Encouragingly, the 1.3600 region helped the market to retain some weekly gains, but with the RSI and the stochastics hovering in overbought waters, it’s questionable how far the rally could still go. Nevertheless, with the indicators remaining elevated within the bullish territory, there might be some room for further improvement [..]

Week Ahead – Euro eyes Italian elections and flash CPI, dollar may take a backseat

Posted on September 23, 2022 at 11:19 am GMT

With the Fed meeting out of the way, a quieter week is on the horizon, barring of course any flare up of tensions between Russia and Ukraine. Either way, the spotlight will probably fall on the euro as far-right parties are expected to gain ground in Italy’s parliamentary election on Sunday, while preliminary inflation readings will come to the fore at the end of the week. In the US, the highlight will be on the PCE inflation figures, though it’s [..]

Technical Analysis – USDCAD unlocks fresh 26-month high

Posted on September 23, 2022 at 7:21 am GMT

USDCAD skyrocketed to a higher high on yesterday’s session at 1.3543, which is a new 26-month peak. The pair looks to be creating a floor above the 1.3400 barrier while the RSI and the MACD oscillators are holding in overbought levels, suggesting that the next move may be to the downside. Traders, however, would be more eager to buy if the price manages to surpass the nearby top at 1.3543. If this is successfully breached, then the rally may next rest [..]

Technical Analysis – USDCAD keeps positive momentum near 22-month high

Posted on September 20, 2022 at 12:53 pm GMT

USDCAD is continuing last week’s rebound but with slower momentum, reaching 22-month highs at 1.3343 yesterday. The short-term bias looks positive as the MACD keeps gaining ground above its red signal line, while the RSI seems to be making its way up towards the 70 level. The 1.3385-1.3420 restrictive region could be a trigger point for steeper bullish action if the pair manages to post a higher high. Further up, resistance could run towards the peak of June 2020 at 1.3715. [..]

Daily Market Comment – Dollar takes a breather; loonie traders lock gaze on CPIs

Posted on September 20, 2022 at 7:58 am GMT

Dollar’s rally pauses ahead of FOMC decision Equities rebound somewhat on short covering Canada’s inflation expected to slow more Gold rebounds, but gains stay limited Dollar pulls back, equities rebound ahead of FOMC The US dollar traded slightly lower against most of its major peers on Monday, stabilizing somehow during the Asian session today. With no clear catalyst behind the greenback’s breather, it seems like traders decided to liquidate some of their long positions ahead of Wednesday’s FOMC decision. Wall [..]

Canada CPI figure may shed some light on the next BoC meeting; loonie plunges – Forex News Preview

Posted on September 19, 2022 at 2:08 pm GMT

Loonie traders will pay attention to Canada’s CPI data for August on Tuesday at 12:30 GMT. Despite having the highest policy rate among the major advanced countries, the Bank of Canada kept maintained its hawkish position at its most recent meeting. The inflation numbers due out tomorrow could provide shed light on whether or not the BoC will choose 25-bps or 50-bps increases at its next meeting in October. Canada CPI expected to fall to 7.3% The August inflation numbers for Canada indicate that the headline [..]

Week Ahead – Trouble spews for yen as Fed, BoE and SNB to hike, put spotlight on BoJ

Posted on September 16, 2022 at 11:37 am GMT

A crucial week is coming up for the markets as no less than four central banks are scheduled to announce their latest monetary policy decisions. There is a strong possibility of a 75-basis-point rate hike from the Federal Reserve, Bank of England, as well as the Swiss National Bank. The Bank of Japan, though, is expected to buck the trend, leaving the yen at the mercy of its rivals. However, the flash PMI estimates for September will be important too [..]

Technical Analysis – USDCAD storms to fresh 22-month high

Posted on September 16, 2022 at 7:50 am GMT

USDCAD has been in an uptrend since early August when the price encountered strong support at the 200-day simple moving average (SMA). Moreover, in the past few sessions, the technical picture has improved even further, with the price recording a fresh 22-month high of 1.3270 and currently trading above its upper Bollinger band. The momentum indicators also suggest that near-term risks are tilted to the upside. Specifically, the stochastic oscillator is sloping upwards in the overbought area, while the MACD histogram has [..]

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