All Articles Tagged - USDCAD

Will Canada’s July jobs report be important for the loonie? – Forex News Preview

Posted on August 4, 2022 at 4:05 pm GMT

Canadian employment likely returned to growth in July, Statistics Canada will show on Friday at 12:30 GMT, but the rebound may not be anything to celebrate. If that turns out to be the case, the figures could do little to alter investors’ rate hike expectations, leaving the loonie under the US dollar’s influence. Soft employment growth expected After a contraction of 43.2k in June, employment in Canada is expected to have increased by 20k in July. Although a return to growth is always welcomed, such an [..]

Daily Market Comment – Wall Street bounces, shrugs off Taiwan tensions and hawkish Fed

Posted on August 4, 2022 at 9:23 am GMT

Solid earnings lift US stocks to multi-month highs despite hawkish Fed soundbites Yen slips further as markets unrattled by China flexing its military muscle over Taiwan Pound edges up ahead of expected Bank of England rate hike, dollar consolidates Earnings relief fuel equities rebound Geopolitical tensions and recession fears appear to have faded into the background for investors as shares on Wall Street staged another impressive rally on Wednesday, while safe-haven currencies retreated further. Another round of better-than-expected earnings [..]

Week Ahead – Bruised dollar looks to NFP report; BoE could speed up rate hikes

Posted on July 29, 2022 at 12:01 pm GMT

The coming week is shaping up to be another crucial one for gauging recession risks and monetary policy paths. It’s NFP week in the United States and the RBA and Bank of England will decide whether to accelerate their hiking cycles. The ISM PMIs are bound to attract a lot of attention as well in the US as growth concerns intensify. Elsewhere, employment figures in Canada and New Zealand, and manufacturing PMIs out of China will be the highlights. Meanwhile, [..]

Technical Analysis – USDCAD moves south with weak momentum; immediate support at 200-day SMA

Posted on July 29, 2022 at 7:43 am GMT

USDCAD is easing with weak momentum below the short-term simple moving averages (SMAs) but is still above the long-term ascending trend line. According to the technical indicators, the MACD is losing ground below its trigger and zero lines, while the RSI failed several times to surpass above the neutral threshold of 50 and is now pointing downwards. In trend indicators, the 20- and 40-day SMAs are getting closer to posting a bearish crossover if the price continues the negative movement. Should selling [..]

Technical Analysis – USDCAD finds floor at 40-day SMA below 1.2900

Posted on July 22, 2022 at 6:41 am GMT

USDCAD looks to be creating a floor around the 40-day simple moving average (SMA) below the 1.2900 round number. The technical indicators are failing to suggest a clear sign as the MACD is holding below its trigger line around the zero level, while the RSI is pointing slightly up near the neutral threshold of 50. Traders, however, would be more eager to engage in buying activities if the price manages to remain above the 40-day SMA and meet the 1.2935 [..]

Canadian CPI and retail sales data incoming after BoC’s 100-bps rate hike – Forex News Preview

Posted on July 18, 2022 at 1:09 pm GMT

CPI and retail sales data for Canada are expected to be released at 12:30 GMT on Wednesday and Friday, respectively. The loonie may not gain from a further increase in inflation. When the Bank of Canada decided to raise interest rates by a staggering 100 basis points on July 13, it sent shockwaves through the market. Despite that, the value of the Canadian dollar against the dollar has dropped to a level not seen since November 2020. Investors are clearly nervous [..]

Week Ahead – Pressure mounts on ECB and BoJ after latest dollar surge

Posted on July 15, 2022 at 11:45 am GMT

After another sizzling-hot inflation report out of the United States, the European Central Bank and Bank of Japan will meet against the worrisome setting of their currencies plunging. The former is expected to launch its tightening cycle, but the latter may make a surprise policy move even though it has not signalled any action. It’s looking to be an eventful week on the data front as well, as the flash PMI estimates for July and inflation numbers are due in [..]

Technical Analysis – USDCAD enjoys summer vibes after explosive rally

Posted on July 15, 2022 at 7:26 am GMT

USDCAD skyrocketed by 2.0% to a 20-month high of 1.3222 on Thursday, and although the pair could not cling to this top, it managed at least to close clearly above the 1.3026–1.3077 block, which had been strongly rejecting the bulls since mid-May. Strikingly, the market is now finally ready to win a weekly close above the 200-weekly simple moving average (SMA) for the first time since October 2020, signaling further progress ahead. In the daily chart, the technical picture is looking brighter. The [..]

Technical Analysis – USDCAD unlocks new 20-month high

Posted on July 14, 2022 at 12:55 pm GMT

USDCAD is flying towards a new 20-month high of 1.3156, breaking the previous triple top at 1.2960. The sharp buying interest is being mirrored in the technical indicators as well. The MACD is ticking up above its trigger and zero lines, while the RSI heading north, approaching the overbought region. Should the price decisively close above the roof of the triple top pattern, the bulls could extend the uptrend towards 1.3175, with the region around that level acting as resistance back in November 2020. Further advances above this level, could [..]

Bank of Canada to speed up rate hikes, but can it lift the loonie? – Forex News Preview

Posted on July 12, 2022 at 2:43 pm GMT

The Bank of Canada is widely anticipated to raise interest rates again on Wednesday, but expectations are high that it will be a super-sized increase this time when the decision is announced at 14:00 GMT. With inflation expectations running at a record and the labour market still tight, the BoC could signal more big rate hikes are on the way. But will policymakers voice some concerns about the growth outlook amid rising recession risks globally, and can the Canadian dollar [..]

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