All Articles Tagged - USDCAD

Will Canada face a US-style inflation spike? – Forex News Preview

Posted on June 20, 2022 at 1:10 pm GMT

Canadian CPI inflation figures for May will make headlines on Wednesday at 12:30 GMT as investors look for clues to justify a potential Fed-style triple rate hike from the Bank of Canada next month. Given the unforeseen inflation spikes elsewhere, an upbeat report in Canada would not be surprising, likely making a super-sized rate increase imminent as the economy is already running hot. Will the BoC follow in the Fed’s footsteps? During June’s policy meeting, the Bank of Canada (BoC) hiked [..]

Week Ahead – Flash PMI and inflation data in focus after mammoth Fed rate hike

Posted on June 17, 2022 at 11:58 am GMT

Recession worries are mounting as central banks around the world step up their fight against soaring inflation. The flash PMI readings for June will be watched for any clues that tighter monetary policy is choking economic growth. In the meantime, inflation numbers in Canada, Japan and the United Kingdom could add yet more pressure on policymakers to do more. However, after hiking rates by the most in 28 years, Fed chief Jerome Powell could steal the limelight again in the [..]

Technical Analysis – USDCAD looks for more upside; 1.2875 in focus

Posted on June 17, 2022 at 7:45 am GMT

USDCAD has been confined within the 1.2859 – 1.2875 zone over the past three days, but its short-term outlook continues to look bright. Particularly, the MACD remains positively charged above its signal and zero lines, while the rising RSI has yet to reach its 70 overbought mark, both suggesting that last week’s impressive rally off 1.2516 could gain more legs. On the other hand, the Stochastics have pivoted southwards, though the indicators remain above their 80 overbought level for now, keeping the bias [..]

Technical Analysis – USDCAD extends advance as positive momentum intensifies

Posted on June 14, 2022 at 3:04 pm GMT

USDCAD has been marching higher in the short term after its latest downside trajectory ceased at the 1.2516 region. Moreover, the pair has profoundly crossed above both its 50- and 200-day simple moving averages (SMAs), endorsing a broader bullish technical picture. The momentum indicators suggest that buyers have taken total control. Specifically, the stochastic oscillator has entered into the overbought zone, while the RSI is flatlining above its 50-neutral threshold. Should buying interest intensify further, the December 2021 peak of [..]

Daily Market Comment – ECB stokes recession, debt fears; dollar rally cools but stocks struggle still

Posted on June 10, 2022 at 9:18 am GMT

Hawkish ECB spurs Eurozone yields to multi-year highs but euro flounders Dollar reclaims FX crown as all eyes now turn to US CPI report Growth and inflation worries dog equities but China bucks trend despite new lockdowns ECB joins global inflation fight, roils markets The European Central Bank laid out a path to terminating all asset purchases and launching a series of rate hikes on Thursday as it sharply raised its inflation forecasts. But although the move was widely expected [..]

Technical Analysis – USDCAD fails to continue yesterday’s aggressive bullish rally

Posted on June 10, 2022 at 7:08 am GMT

USDCAD had an aggressive bullish rally on Thursday, moving towards the 1.2700 psychological number, but the Canadian employment report later in the day may strengthen the loonie. The pair is flirting with the 20-day simple moving average (SMA) and is failing to continue the buying interest. Technically, the MACD oscillator is gaining momentum above its trigger line and below the zero level, while the RSI is appearing flat near the neutral threshold of 50. In trend indicators, the 20- and the 40-day [..]

Daily Market Comment – Choppy trading in build up to US CPI, central bank bonanza

Posted on June 8, 2022 at 9:23 am GMT

Wall Street closes up but futures slip amid wavering sentiment Dollar maintains upward crawl as inflation and growth worries persist Yen keeps sinking, loonie outperforms as tight oil supply boosts prices Stocks lack direction but bargain hunters lurk Bargain hunters drove Wall Street higher on Tuesday, piling into defensive tech stocks and energy shares. The S&P 500 and Nasdaq Composite both closed up about 1%, but the Dow Jones lagged slightly. Retailers weighed on Wall Street after the department store [..]

Loonie needs some boost from employment report for a rise – Forex News Preview

Posted on June 7, 2022 at 10:04 am GMT

The Canadian employment report is due on Friday at 15:30 GMT, and it is anticipated that the labor market continued to expand in May. At its June 1 meeting, the Bank of Canada (BoC) became more hawkish, signalling that it may have to be cautious to combat inflation, in part due to the robust labor market. Unemployment rate is anticipated to be steady In accordance with market predictions, the jobless rate in Canada decreased to 5.2% and is predicted to [..]

Week Ahead – ECB and RBA meetings: playing catchup

Posted on June 3, 2022 at 12:29 pm GMT

The European Central Bank is set to flag its first rate hike in more than a decade this week, while the Reserve Bank of Australia might step on the brakes harder. But as the laggards of the central bank world finally get their stakes on when it comes to tightening policy, investors will be on the lookout for more evidence that inflation may already be peaking in the United States. China’s economy will be in the spotlight too as trade [..]

Technical Analysis – USDCAD in a bearish mode ahead of NFP

Posted on June 3, 2022 at 7:18 am GMT

USDCAD lost the battle with the 200-day simple moving average (SMA) on Thursday and tumbled to a three-week low of 1.2556 after two days of waiting to cross above the line and the 1.2655 resistance. The price is currently trading near a familiar constraining zone, which has been frequently limiting upside and downside moves around 1.2565 for more than a year now. Questions, however, are rising about whether it will successfully stage a meaningful rebound at this point as technical signals keep [..]

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